DFC’s Larger Scope Requires A Larger Commitment to Accountability

In late December 2025, the U.S. Congress reauthorized the U.S. International Development Finance Corporation (DFC), giving the United States’ development finance institution the ability to operate for another six years. For many years, Accountability Counsel has advocated for the DFC to uphold strong environmental and human rights protections and ensure accountability and remedy for any harms stemming from its financing. 

Thanks to advocacy of Accountability Counsel and several civil society organizations, the DFC reauthorization legislation maintains DFC’s Independent Accountability Mechanism (IAM), the office that allows communities to raise concerns directly to DFC and have those concerns addressed through a compliance investigation or dispute resolution process. Having a strong IAM is all the more important for DFC now, as the reauthorization also expands the institution’s investment cap from 60 billion U.S. dollars to 205 billion U.S. dollars, makes it easier to invest in high income countries, and designates a fund for equity investments. This expanded scope will come with expanded negative impacts on local communities, if DFC’s projects are not implemented according to the highest standards. DFC’s IAM is an important bulwark against harm for communities and the institution, as it ensures that there’s a process to address impacts that destroy livelihoods, undermine DFC’s development mandate, and increase reputational risk for the United States.

Going forward, the IAM must have sufficient resources and staff to do its work. Currently, the IAM has only one full-time staff member, which is insufficient. Although the reauthorization also calls on the DFC Board to submit a report to Congress evaluating the possible efficiencies of consolidating the IAM’s function under the DFC Office of Inspector General, a potential consolidation should not be an excuse to under-resource the IAM now. And as the Board develops this report, its guiding principle should be to ensure that communities have an accessible, transparent, and effective means to raise human rights and environmental concerns. 

Accountability Counsel will continue to push DFC to put communities and sustainable development first in its work.