The DFC Modernization Act of 2025 aims to update and extend the Better Utilization of Investments Leading to Development Act of 2018, enhancing the United States International Development Finance Corporation's (DFC) capacity to mobilize private investments in developing countries while aligning with U.S. foreign policy and national security interests. The Act introduces significant provisions, including an increase in the DFC's risk tolerance for investments, enabling it to engage in higher-risk projects and sectors.