U.S. development finance efforts were consolidated under the Overseas Private Investment Corporation (OPIC) in 1969 by President Richard Nixon, transferring responsibility from the United States Agency for International Development (USAID). The goal was to promote more business-like management of development finance policy. In the 2010s, the Obama administration came to support further consolidation of U.S. development finance in light of the increasing Chinese investment in the developing world (particularly through the Belt and Road Initiative).
The Trump administration originally opposed OPIC, and its proposed 2018 budget had called for the elimination of OPIC altogether, but advocacy by some administration officials, Senators, and others convinced the White House to support the consolidation of OPIC and development finance efforts in line with the President's policy priorities. Relevant legislation — the Better Utilization of Investments Leading to Development (BUILD) Act — was introduced in Congress to establish the DFC shortly thereafter.