The Senate passed the Better Utilization of Investments Leading to Development (BUILD) Act as part of a bill to reauthorize the Federal Aviation Administration, which passed by 93 to 6. The entire package, which had already been approved by the House of Representatives, will now be sent to President Donald Trump, who is expected to sign it into law.
The measure creates a new agency, the U.S. International Development Finance Corp, that consolidates the Overseas Private Investment Corp (OPIC) and other government development organizations.
Those institutions lend money for projects such as energy, ports and water infrastructure in developing countries.
OPIC, which aims to advance U.S. interests by lending to overseas business ventures and makes money for the U.S. Treasury, had come under fire from critics who say private banks are best suited to make investment decisions.
Ray Washburne, OPIC’s president, told Reuters last week that the bill would allow the new development agency to take an equity stake in projects rather than just lend money. It also will let the agency provide political risk insurance to help foster private investment in emerging markets, an area where competition from Chinese enterprises has become particularly fierce.
Trump last year proposed cutting funding for any new OPIC projects. However, the Trump administration this year has supported creation of the new entity.