Article

The reauthorization of the US Development Finance Corporation (DFC) under the FY2026 National Defense Authorization Act increases its investment capacity to $205 billion, aiming to support connectivity projects globally. The DFC can now operate in more countries and prioritize ICT-related deals.

It emphasizes catalytic investments and introduces a $5 billion equity revolving fund for equity investments while raising the project notification threshold to $20 million. Despite these advancements, concerns about bureaucratic hurdles, lack of sector-specific expertise, and the need for pre-investment support for local ISPs persist, potentially hindering effective deployment. To compete with Chinese digital infrastructure finance, the DFC must translate these reforms into actionable outcomes.