Hill as this historic election unfolds. Watch on cspan, cspan now, or online at cspan. Org. Cspan, your unfiltered view of government. A look at u. S. Investments abroad and oversight of the International Development corporation with its ceo, scot nathan. He talks about the dfcs focus on Food Security, and strengthening supply chains. This runs an hour and a half. This hearing of the Senate ForeignRelations Committee will come to order. Let me start by making something crystalclear to the international community. To the u. S. Foreignpolicy community. Two our nations allies and adversaries. As this Committee Moves forward, we will continue our work on behalf of the american people, as we have done for more than two centuries. The world faces challenges as well as opportunities. This committee of Senate Foreign relations, its members and staff, play a Critical Role in meeting the challenges america faces in National Security. As i accept the chairmanship with great humility, thanks to the support of our members, thanks to the support of Ranking Member risch, and thanks to our dedicated and hardworking committee staff, we will continue to advance our values, and National Interest on the global stage. My priority is simple. To strengthen americas diplomacy. To make sure our diplomats have the tools they need and congress provides the appropriate oversight in carrying out that responsibility. All of this needs to be done in promoting american values. American values of democracy, anticorruption, Good Governance, human rights, transparencies. These are the values that give strength to americas foreign. Effective International Development is a critical part of this effort. The american approach to entrepreneurialism with individuals building businesses that contribute our shared economy has fueled much of this countrys success. Promoting growth that sustains the middleclass class and hold government accountable is vital. Over the decades, we have experimented with different ways to make economic diplomacy part of our efforts abroad. From the marshall plan, to loan programs for women in rural areas to purchase cattle, we have to tools in different contexts. We know that economic develop meant and finance are essential for stable economies. And stable economies lead to stable countries, which lead to prosperity and security for all. Today, i would like to hear about how the Development Finance corporation, the dfc,s for filling its mandate. It was established in 2018 by the build act, which i know many of our colleagues on this committee worked tirelessly to get that done. This is the first hearing of the Foreign Relations committee is holding to look at how you are doing, and what we need to consider as the authorization comes up for renewal. Mr. Nathan, i want to welcome you to this very important hearing, for west africa, to the western hemisphere, dfcs loans, insurance and investments make a positive impact on development. On energy and health care. Technology and innovation. On womens empowerment in addressing the climate races. I want to commend the work of the dfc, you have improved Energy Security with investments in the region of iraq. You made Telecom Networks more reliable. And you strengthen conference conservation efforts in ecuador. Your you are helping to secure supply chains and investments in india. Your work harnesses renewable sources and you do so without forced labor that we see in the peoples republic of china. The kinds of investments in Development Models dfc champions are what make the United States a better partner in comparison to chinas deathtrap diplomacy efforts. As we continue the reauthorization, we need to continue to make sure the United States remains the preferred investment partner. We need to make sure we have the tools to match our allies capabilities. With that, we are good stewards of the taxpayer money. Here are the challenges that we confront that i hope we will have a chance to discuss during this hearing. We need to talk about the scoring issues with the Equity Investment program. We need to tackle dfcs maximum contingent liability cap. We need to figure out how we can expand the eligibility tools where dfc can pursue deals. I also believe we need more transparency on financing deals. The dfc has been slow to establish accountability measures. I specifically referred to the Development Advisory council and accountability mechanism. The dfc must diversify more of its funding away from the worlds biggest banks. And it must make sure to properly vet micro lenders so that we can write any wrongs when loans do not go as planned. I hope you will layout your proposal to reorganize the dfc. How do you see this improving the dfcs operations and its ability to advance our National Security and Foreign Policy objectives . I also expect you to address the concerns the committee has heard from dfc labor unions, and how you will involve the workforce in your reorganization plans. I want to underline that i am committed to working with everyone on this committee to develop the build reauthorization and move it forward. Let me turn to our distinguished Ranking Members, senator risch, with my thanks for his help as i have assumed the chairmanship. Thank you, mr. Chairman. We have worked on a number of things in the past and i look forward to doing so in the future. For those of us who watch this committee, changes are inevitable on the committee. We have a process in place for seamless transition. There is nothing more nonpartisan and bipartisan than the National Interests and the National Security of they knighted states of america. This committee certainly leads us forward in that regard. Together, we will move that forward and i appreciate working with you, mr. Chairman. Thank you for having this hearing today. It is the United States interest to promote Economic Freedom which lists hundreds of millions of people out of poverty and achieves shared prosperity. It is also in our interest to protect Economic Freedom from encroachment by authoritarian regimes that seek to undermine free markets. That is why in 2018, congress authorized the creation of the Development Finance corporation, an agency with unique authorities to make Development Finance more efficient, and impactful. I am concerned about dfcs ability to balance its dual mandate to advance and protect Economic Freedom, particularly when this Administration Seeks to at times it appears some people have forgot this. It comes as no surprise we are to put resources at work in different regions. It cannot be anything to everyone all at once. The dmc can play an Important Role with overall strategy but the dfc cannot face the world on its own. Too many mandates imposed by congress and working administration will strangle this mission. Flexibility is key here. And we depend on flexibility to find willing private sector borrowers. The higher it will be for the dfc to fund the partners. Repeated efforts to launch high and high effort investment lights maintains a development focus. U. S. Taxpayers should not be subsidized in countries when they have their money to pay their own policy priorities. Those principles are evident in the Energy Sector. Administrations are pushing a zero carbon mandate that will fail to close the energy gap and will push other countries closer to china and russia who do not pose those mandates. It is outrages, but the agency would rely so heavily on Solar Projects built on the back of slave labor. There is no place for slave labor in dfc projects or anything the United States touches including solar supply chains. The United States cannot compromise its values to have climate objectives. It is unclear it is clear that forced labor is unacceptable. But theres opportunities for there to be legislative fixes. I am eager to hear from dfc what it needs to succeed in achieving its mission. Thank you. Thank you for that opening statement. I think you highlighted one of the issues that i hope we get into how to balance strategic and Development Goal initiatives. That is one of the key points and i appreciate you raising that in your opening statement. Its my honor to introduce our witness today chief executive officer scott nathan. He leads the corporation at a critical moment for enhancing u. S. Priorities. Prior ship to his leadership at dfc he served in the Obama Administration including a representative for commercial business at the state department where he had a team of Public Service officers and Public Servants that focused on this interest abroad and advocated on behalf of american exports. He also worked in the private sector and served as the board chair of the league of conservation voters. I look forward to hearing from you today. Youll full your full statement will be included in the record. Summarize your comments in about five minutes so we can be engaged in the conversation in the way the committee is used to hearing most effectively. Members of a committee, thank you for having me here today are discussing the United StatesInternational Development of finance corporation. I want to thank congress and this committee for its continued support of dfc. It is now almost four years since we launched and with reauthorization coming in the next two years, i welcome this opportunity to talk about our organization. With your support we are continuing to build our capacity to advance the private sector in countries where we were to make developmental and strategic impact. Fiscal year 2022 dfc did more than 7. 4 billion dollars in transactions across 138 deals. In the fiscal year that concluded a few days ago, we significantly surpass the total with more than 9 billion in new deals. A record for dfc. I am proud of our team and encouraged by our results. I know that dfc can do more as we continue to develop and execute on hours strategy. On our strategy. We are focused on different energy, in a range of different technologies we provide access to power or countries from nigeria, ecuador and india. Also in india, we have lent nearly 1 billion for projects they are to advance the diversification of the solar power your our manufacturing away from the reliance on china. At the same time, with investment on central and Eastern Europe, dfc is promoting Energy Securities so that they are less dependent on russia to meet the energy needs. We provide support for seaports, airports, and railways that connect communities to the opportunities of global marketplace. Over the past year, for example, dfc financing had the modernization of the seaport in could or and an airport as well. And we are also investing in Digital Infrastructure including safe, secure, and open information technology. Networks and theres an acquisition of the Australian Company of digits cell to secure highquality trusted mobile Network Services in these important markets. Similarly, in africa, we are financing to build out a Digital Infrastructure with equipment across numerous markets. Dfc also working to secure supply chains for minerals that are essential to u. S. National security. Last month we approved a loan for a graphite mine in mozambique in order to have this mineral away from p. R. C. Dominance. And we are also providing support for the businesses that are engines of every free and dynamic marketplace. In ecuador, turkey, ghana, sri lanka, and dozens of other countries dfc is altering the ability of banks and other institutions to lend it to the Small Businesses that generate jobs and opportunities. We look to support entrepreneurship and more open economies wherever we work. Our strategic competitors do not make these kind of investment. The United States does. Food securities and that is another priority area for dfc. It is even more urgent at this russian brutal and illegal war against ukraine. It endangers global Agricultural Supply chain for communities around the world. And additionally dfc once support for more health systems. We are preparing vulnerable communities for the next health emergency. In the private sector dfc has values of u. S. Openness, respect for laws and conditions, and high environmental labor and quality standards. To accomplish this we continue to add hands our capacity enhance our capacity and monitor and measure our impact. Over our short history, dfc has significantly increased its capacity to do your teaching and High Developmental transaction. We inherited a structure that provided Great Results now with the broader toolset and a dual mandate, and even Higher Expectations for what dfc can deliver we need to be more strategic in our planning and more focused and proactive in our Business Development. To improve our effectiveness and efficiency, dfc is engaged in a process of realigning our transaction teams with a set of priority enduring sectors infrastructure, energy, health, agriculture, and support for small business. Organizing around sectors will allow dfc to promote greater accountability by optimizing as we plan and resource allocation across our roy gordys and enable Better Solutions for our client our priorities and enable Better Solutions for our client. We engage staff through numerous workshops, interviews, town halls, and more than 100 consultations and meetings. As dfc grows to better fulfill the process promises a build back we need to be organized with the resources that Congress Gives us for the best use. Our on authorization under the bill better act expires in 2025. We are eager to share the success and challenges with congress in the coming month and continue ongoing discussions in a range of issues including maximum contingent loss ability, hiring and incentive, country eligibility, and our equity and other tools. We look forward to continuing these discussions with you so that dfc can fulfill the promise of the build act. Thank you for the support that makes our work possible and your continued continued commitment in helping dfc achieve more. I look forward to your questions. Thank you for your service and your statement and for being here today. We will have fiveminute rounds for members to ask questions. I want to start on the one that senator rich made in his opening statement, that is how you are balancing the strategic concerns with the development object gives. Objectives. And let me put this in context we know that this initiative requires us to be strategic in how we use all of our tours including those at dfc. But the very clear value, the build act and eight is that development mandates be front and center. So, how do you go about balancing the strategic importance of what you are doing with the Development Opportunities that are out there . Thanks for the question. Build back is very clear that we have a dual mandate. That is a difference from our predecessor agency. To advance Foreign Policy in the United States and make a Development Impact in the poorest countries of the world. I do not see these two mandates intention, i think in tension. I think they were together i think they alleviate poverty, create greater stability through economic road, the u. S. Foreign policy it has stability, Free Enterprise and it is directly in the United States interest. That said, we do transactions across a range of sectors. Last year do we we did over 130 transactions. We did a similar amount in the year before. Every transaction amount has different elements to it. Some are very explicit in terms of the National Security component related to the global competition with our strategic competitors. Others are more related to economic road. Economic growth. But every at everyone has Development Impact and advances for this policy in the interest of the United States. I agree with that i do not think they are inconsistent but i think it is for us to better understand how you make the balanced decisions. And one question we have as we consider