To amend title 10, United States Code, to establish the Office of Strategic Capital in the Office of the Secretary of Defense, and for other purposes.
Impact
The introduction of the Office of Strategic Capital represents a significant shift in how the Department of Defense might fund and manage vital national security-related investments. By enabling loans and guarantees to be provided to both public and private entities, the bill establishes a robust funding mechanism intended to expedite critical projects that contribute to national defense. Eligible investments are defined broadly, suggesting that various sectors, including technology, infrastructure, and research and development, could benefit from this financial support. This could lead to accelerated advancements in areas deemed essential for national security.
Summary
House Bill 4952 aims to enhance national security through the establishment of the Office of Strategic Capital within the Department of Defense. This new office is tasked with identifying, accelerating, and sustaining crucial investments and assets vital to national security. The bill outlines the responsibilities of this office, allowing it to provide capital assistance to eligible entities, including loans, loan guarantees, and equity investments. The office's creation is positioned as a means to protect vital assets from foreign adversaries, thereby strengthening the United States' defense posture.
Contention
Despite its intentions, the bill may face scrutiny regarding the specifics of how the capital assistance will be allocated and managed. Concerns may arise around transparency and accountability, as the office will have discretion over the investment criteria and funding process. The definition of 'eligible entities' and the criteria for capital assistance could lead to potential debates on which projects truly serve national interests versus broader economic goals. Additionally, the bill's expiration date of October 1, 2028, invites discussions about the long-term sustainability and impact of this initiative.
To amend title 46, United States Code, to include the replacement or purchase of additional cargo handling equipment as an eligible purpose for Capital Construction Funds, and for other purposes.
To amend title 10, United States Code, to prohibit the Secretary of Defense from paying or reimbursing expenses relating to abortion services, and for other purposes.
To require the Secretary of Defense and the Secretary of State to monitor efforts by the People's Republic of China to build or buy strategic foreign ports, and for other purposes.
Federal Infrastructure Bank Act of 2023 This bill establishes the Federal Infrastructure Bank and the Federal Infrastructure Bank Holding Company (FIBHC). The bank shall be a wholly owned subsidiary of the FIBHC. The bank must provide equity investments, direct loans, and loan guarantees for the planning, predevelopment, design, construction, operation or maintenance of infrastructure projects in the United States with sufficient revenue sources and guarantees to support the interest and principal payments to the bank. At least 10% of the loans, equity investments, and loan guarantees must be for infrastructure projects in rural areas. The Board of Governors of the Federal Reserve System shall have oversight and supervisory authority over the FIBHC and the bank. The bank must establish an Infrastructure Guarantee Fund to cover loans and loan guarantees in the event of nonpayment by loan recipients. The bill provides for a taxpayer credit in an amount equal to 10% of the amount such taxpayer paid to the FIBHC for an equity investment at its original issue.