This hearing of the Senate ForeignRelations Committee will come to order. Let me start by making something Crystal Clear to the international committee. To the u. S. Foreign policy community, to the nations allies and adversaries. As the 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 the Senate ForeignRelations Committee, its members and a staff play a Critical Role meeting the challenges america faces in National Security. And as i accept the chairmanship with great humility, thanks to the support of our members, thanks to the support of the Ranking Member and thanks to our dedicated and hardworking committee staff, we will continue to advance our values and National Interests 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 carrying out that responsibility. All needs to be done promoting american values. American values of democracy, anticorruption, Good Governance, human rights, transparency. These are the values that give strength to americas Foreign Policy. Effective International Development is a critical part of this effort. The american approach to entrepreneurship with individuals building businesses that contribute our shared economy has fueled much of the countrys success promoting growth that sustains the middle class and holds the government accountable. Over the decades weve experimented with different ways to make economic diplomacy our efforts abroad. From the Marshall Plan to the loan programs from women in rural areas to purchase, we have different tools in different contexts. But we know that Economic Development and finance are essential for stable economies. And a stable economies lead to stable countries that lead to prosperity and security for all. So today i would like to hear about how the Development Finance corporation is fulfilling its mandate. It was established in 2018 by the build act which i know many of our colleagues on the committee worked tirelessly to get that done. This is the first hearing the Foreign Relations committee is holding to look at how you are doing and what we need to consider is the authorization comes up for renewal. I would like to welcome you to this hearing from west africa to the western hemisphere on energy and healthcare, technology and innovation, womens empowerment and addressing the climate crisis. I want to commend the work of the improved Energy Security with investments in the region of iraq, the Telecom Networks more reliable in gambia and sierra leone and efforts through ecuador. Your helping secure the Energy Supply chains and investments. You work the Renewable Resources and you do so without forced labor that we see the peoples republic of china. The kind of investments and models champion are what make the United States a better partner in comparison to the diplomacy efforts. As we consider the reauthorization we need to make sure the United States remains a preferred investment partner. We need to make sure we have the tools to match our allies capabilities and that we are good stewards of the taxpayer money. So, here are some of the challenges that we confront that i hope that we will have a chance to discuss during the hearing. We need to talk about the issues with of the Equity Investment program and that faculty of maximum viability cap and we need to figure out how we can expand the eligibility pools to pursue deals. I also believe we need more transparency with the finance deals. Theyve been slow to establish Accountability Measures required by the build act. I specifically refer to the Development Advisory council and an independent mechanism to diversify more of its funding away from the worlds biggest banks and must make sure to properly vet micro lenders so we can write any wrongs when they dont go as planned and i hope you will lay out your proposal to reorganize. How do you see this in proving the operations and its ability to advance the National Security and Foreign Policy objectives . I expect you to address the concerns heard from the labor unions and how youre going to involve the workforce in your reorganization plans. Finally i want to underline i am committed to working with everyone on the committee to develop the reauthorize asian moving forward. With that let me turn to the distinguished Ranking Member with a thanks for his help as ive assumed the chairmanship. Thank you weve worked together in the past and i look forward to doing so in the future. For those of us that watch the committee the changes are inevitable on the committee that we have a process in place for the seamless transition. There is nothing more nonpartisan and bipartisan than the National Interests and National Security of the United States of america and this committee certainly leads us forward in that regard. Together we appreciate working with you, mr. Chairman. Thank you for having the hearing today. It is in the interest to promote Economic Freedom which lifts hundreds of millions out of poverty and achieves shared prosperity. Its also in our strategic interest to protect Economic Freedom from encouragement by the authoritarian regimes that seek to undermine free markets. Thats why in 2018, congress authorized the creation of the corporation an agency with a unique authority to make the finance more efficient, effective and impactful. I am concerned, however, about the ability to balance the dual mandate to advance and protect Economic Freedom particularly when the Administration Seeks to use to promote its agenda. At times it appears some people have forgotten the development is an event in the name. It comes as no surprise the administration and colleagues are eager to put the resources to work in specific regions, countries or handpicked sectors, but they cannot be everything to everyone all at once. They can play an Important Role with other Government Agencies and the overall strategy of countering china but they cannot seek its own. The mission is market oriented developed. The committee mandates and posts by congress or the administration will strangle this mission the success depends on the willingness in developing countries and the more policy riders congress or administration the harder it will be to find those partners. Repeated efforts to launch investments in high Income Countries invite rightful skepticism to work the commitment to maintaining a development focused u. S. Taxpayers shouldnt be subsidized in rich countries who have the money to pay their own policy priorities. Nowhere is the abandonment of the foundational principles more evident than any Energy Sector instead of listening to what the developing countries want and need, the administration is pushing a zero carbon mandate that will fail to close the energy gap and will only push other countries closer to china and russia who do not impose those mandates. However, it is moreover it is outrageous that the agency would rely so heavily upon the Solar Energy Products built on the backs of the slave labor. Theres no place for slave labor in any supportive projects indeed for anything that the United States touches including solar supply chains. The United States cannot compromise its values to achieve messaging related to claimant objectives and must continue to make it clear forced labor is unacceptable. With that being said there are plenty of opportunities to enhance the work to creative legislative fixes and im eager to hear what it needs to succeed in achieving its mission. Thank you. Thank you, senator for that Opening Statement. I think youve really highlighted one of the issues i hope that we will have a chance to get into how you balance strategic and development goals. Thats one of the key points and i appreciate the Ranking Member raising that as an Opening Statement. Its now my honor to introduce the witness today, chief executive officer scott nathan currently leads the Development Finance corporation at a critical moment for enhancing the development priorities. Prior to his leadership, mr. Nathan served in the Obama Administration including being the special representative for the commercial Business Affairs at the state department where he led the team a Foreign Service officers and Civil Servants who focused on protecting u. S. Economic interests abroad and advocated on behalf of of american exports. Mr. Nathan also worked in the private sector and served as the board chair of the league of conservation voters. Mr. Nathan i look forward to hearing from you today. Your full statement will be included in the record. Without objection. I ask you summarize your comments in five minutes so we can be engaged in a conversation the way the committee performs its hearings most effectively. Chairman, Ranking Member richey and members of the committee, thank you for having me here today to discuss the United StatesInternational Development corporation. I want to thank congress and especially this committee for its continued support. Its now almost four years since the launch and with reauthorization coming in the next two years, i welcome the opportunity to talk about our organization. With your support we are continuing to build our capacity to finance the private sector in countries where we work to make developmental and strategic impact. In fiscal year 2022, they did more than 7. 4 billion in transactions across 138 deals and in the fiscal year they concluded a few days ago we significantly surpassed that total with more than 9 billion in deals, the record. Im proud of the team and encouraged by the results. But i know they can do more even more as we continue to develop and execute on our strategy. In transactions with deep strategic significance to the United States in energy across a range of technologies, dfc is helping to provide reliable access to power in countries from malawi and nigeria to ecuador and india. Also in india we have lent nearly a billion dollars in the last 18 months to two projects that advance the diversification of the solar power manufacturing supply chain away from reliance on the peoples republic of china. At the same time with investments in central and Eastern Europe, we are promoting Energy Security by helping communities become less dependent on russia to meet their energy needs. Dfc prioritizes transactions and highquality infrastructure providing support for seaports, airports and railways that connect communities to the opportunities of the global marketplace. Over the past year, for example, dfc financing supported the modernization of the seaport and ecuador and airport in sierra leone. Dfc is also investing in Digital Infrastructure including safe, secure and open Information Technology networks, for example supporting the acquisition of an Australian Company of the Pacific Island assets of did gisele helping to secure highquality trusted Network Services in these important markets. Similarly in africa we are financing the build out in the Digital Infrastructure with trusted equipment across numerous markets. We are also working to secure supply chains for minerals that are vital to u. S. National security. Last month the board approved a loan for a graphite mine in mozambique to help diversify global supplies of this material, this important mineral away from prc dominance. We also provide support for the Small Businesses that are the engines of every free and dynamic marketplace. In ecuador, turkey, sri lanka and dozens of other countries we are bolstering the ability of banks and other Financial Institutions to lend 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 investments. The United States does. Food security is another priority area. In effort that has become even more urgent as russias brutal land a legal war against ukraine and dangerous global Agricultural Supply chains for communities well beyond the region. Additionally, we support more Resilient Health systems helping to prepare vulnerable communities for the next health emergency. In every area where we partnered with the private sector, the transactions carry u. S. Values of openness, respect for local laws and conditions and high environmental labor quality standards. To accomplish this, weve continued to enhance our capacity to screen transactions and monitor and measure our impact. Over the short history, weve significantly increased the capacity to do strategic and highly developmental transactions. We inherited the structure that provided great results, but now with a broader toolset and a dual mandate and even Higher Expectations for what can be delivered. We need to be more strategic in our planning and more focused and proactive in our Business Development. To improve our effectiveness and efficiency, we are engaged in a process of realigning our transaction teams around a set of n during priority sectors, infrastructure, energy, health, agriculture and support for small business. Organizing around sectors will allow us to promote greater accountability by optimizing investment planning and resource allocation across our priorities and enable Better Solutions for our clients. The process has benefited from extensive input from all parts of our organization and we have engaged staff through numerous workshops, interviews, town halls and more than 100 consultations and meetings. As dfc grows to better fulfill the promise act we need to make sure we are organized to put the resources congress has given us to the best use. Our authorization under the build act expires in october of 2025 and weve begun planning for reauthorization. We are eager to share our successes and challenges with congress in the coming months and continue ongoing discussions on a range of issues including maximum contingent liability, cease spending authority, hiring incentives, country eligibility and our equity and other tools. We look forward to continuing these discussions with you so we can fulfill the promise of the build act. Thank you for support that makes our work possible and for your continued commitment to helping achieve even more. I look forward to your questions. Thank you for your service and statement and for being here today. We have fiveminute rounds for members to ask questions. And i want to start on the point senator risch made during his Opening Statement and that is how you are balancing those strategic concerns with the development objectives. And let me just put this in context we all understand chinas belt and rode initiative requires us to be strategic in how we use all of our tools including those that dfc. About to be very clear about it, the build act mandated that the development mandates be front and center so how do you go about balancing those strategic importance of what youre doing with the Development Opportunities that are out there . Thanks for the question. The build act was very clear that we have a dual mandate and this is the difference from our predecessor agency to advance the Foreign Policy interest in the United States and to make Develop