DFC’s Transformation Into a Sovereign Fund: The U.S. Builds Infrastructure to Intercept Beijing’s Influence Over Critical Infrastructure Nodes

On February 20, 2026, the board of directors of DFC (U.S. International Development Finance Corporation—a government agency that supports private investment projects in developing countries) approved new investments in critical minerals, port infrastructure, and supply chains.

The decision marks the United States’ transition to direct competition with China for control over physical assets on which the defense industry, semiconductor sector, and energy transition depend.

The DFC portfolio limit has been expanded to $250 billion; in the FY2026 budget request, the administration proposed creating a $3 billion revolving equity fund.