The bill establishes a private, nonprofit Haitian American Enterprise Fund for Haiti designated by the President, to be operated by the Chief Executive Officer of the U.S. International Development Finance Corporation. It aims to mobilize capital and technical assistance to strengthen Haiti’s private sector, build critical infrastructure, and foster governance enhancements in line with U.S. development policy.
The act authorizes an up-to-2031, $1 billion per year appropriation to support activities, sets up oversight and reporting mechanisms, and embeds diaspora and private-sector participation to spur durable development.
At a Glance
What It Does
Designates a private nonprofit Enterprise Fund and authorizes its operation by the U.S. International Development Finance Corporation’s CEO to finance Haitian private-sector development and infrastructure projects through a range of financial instruments.
Who It Affects
Haitian private sector players (MSMEs, agriculture, energy, manufacturing, tourism), the Haitian diaspora, U.S. development agencies (DFC, USAID), and potential private investors.
Why It Matters
Creates a structured, accountable vehicle to channel private capital and expertise into Haiti, aiming to reduce poverty and irregular migration by expanding opportunity and resilience.
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What This Bill Actually Does
The bill sets up a private nonprofit entity—the Haitian American Enterprise Fund—designated by the President to support development in Haiti. The Fund is to be run by the Chief Executive Officer of the U.S. International Development Finance Corporation and may be designated by the President after consultations with congressional leaders.
Its mission is to promote private-sector growth in Haiti, including micro, small, and medium enterprises, while supporting infrastructure, agriculture, energy, manufacturing, and tourism through a mix of equity investments, loans, guarantees, grants, insurance, and technical assistance. Investments are intended to be aligned with Haitian government priorities and to foster an accountable, transparent democratic system of governance, partly by integrating anti-corruption and human-rights considerations.
The Fund is designed to leverage public and private funding, potentially including U.S. venture capital, with explicit limitations on grant use and operating costs. Oversight is entrusted to a nine-member panel, with governance, audits, and regular reporting to Congress, and the Fund is to terminate by 2031 with repayment of funds to the Treasury.
The bill also provides for public reporting on Fund activities and ongoing consultations with international financial institutions and private-sector stakeholders.
The Five Things You Need to Know
The Act designates a private nonprofit entity as the Haitian American Enterprise Fund, to be operated by the CEO of the U.S. IDFC.
The Fund may invest in Haiti’s private sector and critical infrastructure using a mix of equity, loans, guarantees, grants, insurance, and technical assistance.
An Oversight Panel of nine directors, including both U.S. and Haitian representation, will monitor performance and ensure governance safeguards.
The Fund may raise private venture capital and is capped on grants (up to 20%) and operating costs (up to 15%), with returns reinvested.
Authorization of $1 billion per year is provided for 2026–2031, and the Fund terminates by December 31, 2031 with repayment to the Treasury.
Section-by-Section Breakdown
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Findings and rationale
The bill catalogs historical, economic, and strategic reasons for U.S. engagement with Haiti, including dependencies on remittances, the strategic Caribbean location, and the role Haitian Americans play in U.S. society. It frames development as a pathway to stability, governance reform, and a reduction in irregular migration, while underscoring the need for sustainable, inclusive growth that respects Haitian sovereignty.
Purposes
This section outlines the Fund’s objectives: to develop Haiti’s private sector (MSMEs, agriculture, energy, manufacturing, tourism, and diaspora partnerships); to facilitate investment through equity, guarantees, loans, and training; to promote a transparent, accountable governance environment in Haiti; and to create conditions for industrial growth that supports employment and development goals.
Designation of the Enterprise Fund
The President may designate a private 501(c)(3) organization as the Enterprise Fund if it can carry out the mandated activities, following consultations with House and Senate leaders. The designated entity is not a U.S. government agency; it will be operated by the CEO of the U.S. IDFC and may coordinate with USAID.
Oversight Panel
A nine-member Board of Directors oversees the Fund. The CEO appoints five non-governmental individuals (US or Haiti-based, with clear loyalty to democracy and a market economy) and two Haitian citizens, while the President appoints two US citizens with a Haiti-development focus. The Panel is expected to engage with peers in private funds, multilateral institutions, and civil society.
Investments for programs and projects
Investments must advance Haitian private-sector development and resilience, prioritizing MSMEs, agriculture, energy, manufacturing, and tourism, and can involve joint ventures with the diaspora. The Fund can use equity investments, feasibility studies, grants, guarantees, insurance, loans, and technical training, with a focus on governance and sustainability.
Administration of funds
The Fund may reinvest investment returns and payments to finance further activity, avoiding Treasury transfers. It may seek U.S. private venture capital but must keep investor oversight separate from management. There are limits on grant usage (no more than 20% of federal funds) and operating costs (no more than 15% of funds). Private venture capital investments may be distributed to investors, per the CEO’s discretion.
Audits and recordkeeping
The Enterprise Fund is subject to annual independent audits and GAO reviews during periods when Federal funds are in play. Recipients must maintain separate accounts and records showing funding, costs, and sources, with access granted to auditors.
Termination
The Fund is set to terminate by December 31, 2031, with the CEO required to repay the full amount of funds received from the U.S. Treasury.
Authorization of appropriations
The Act authorizes $1,000,000,000 for each fiscal year from 2026 through 2031, to remain available until expended or the enterprise terminates.
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Explore Foreign Affairs in Codify Search →Who Benefits and Who Bears the Cost
Every bill creates winners and losers. Here's who stands to gain and who bears the cost.
Who Benefits
- Haitian micro, small, and medium enterprises (including women- and youth-led ventures) gaining access to capital and capacity-building
- Haitian diaspora and Haiti‑U.S. joint ventures leveraging networks and remittances for development
- Haitian government and civil society institutions benefiting from stronger governance, rule of law, and institutional reform
- U.S. private sector investors and development partners (DFC, USAID, World Bank, IMF) gaining access to structured, accountable development opportunities
- Local communities benefiting from infrastructure investments and job creation
Who Bears the Cost
- U.S. taxpayers covering the $1 billion annual appropriation (opportunity costs and long-term fiscal commitments)
- Recipients of funds facing compliance and reporting requirements and potential project risk
Key Issues
The Core Tension
The fundamental dilemma is whether a market-based instrument—anchored by a private nonprofit Enterprise Fund led by a U.S. agency executive—can reliably deliver durable development in Haiti while ensuring democratic governance, human rights protections, and local ownership, all within a finite sunset and repayment obligation to the Treasury.
The bill couples private capital mobilization with a robust governance framework, but it also raises policy tensions. Relying on a private, nonprofit Enterprise Fund to channel U.S. development money into Haiti could improve efficiency and private-sector reach, yet it risks prioritizing financial viability over social outcomes if not properly aligned with local needs and human-rights protections.
The oversight mechanism—though designed to prevent waste and corruption—adds complexity and administrative cost, and there is a potential for misalignment between diaspora-led funding ambitions and Haiti’s own development priorities. The plan to leverage private venture capital while limiting grant spending signals a market-driven approach, but the success of such a model hinges on rigorous monitoring, transparent reporting, and a credible path to repaying Treasury funds.
The central questions concern governance safeguards, the balance of risk and reward for Haitian stakeholders, and the fund’s ability to sustain outcomes beyond the 2031 sunset without undermining sovereignty or incurring hidden costs.
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