Today, Congresswoman Maxine Waters (D-CA), the top Democrat on the House Financial Services Committee, introduced H.R. 1764 the “Aligning SEC Regulations for the World Bank’s International Development Association Act.” This bill would exempt the International Development Association (IDA), the concessional lending arm of the World Bank, from Securities and Exchange Commission (SEC) registration requirements—bringing it in line with other arms of the World Bank and Multilateral Development Banks (MDBs) that have long enjoyed similar exemptions, while also helping to support IDA’s ability to provide more concessional lending to the world’s poorest countries. This legislation comes as the Trump Administration ramps up efforts to enact goals from Project 2025 to exit the World Bank, which would diminish U.S. influence, weaken IDA, and undercut the organization’s AAA credit rating.

IDA has played a critical role in providing grants and low-interest loans to some of the world’s poorest countries, allowing them to invest in their futures, improve lives, and build safer, more prosperous communities worldwide. IDA began issuing bonds in April 2018, but unlike other World Bank entities, these securities must still be registered with the SEC—a requirement that Congress removed for the International Bank for Reconstruction and Development and International Finance Corporation in 1945 and 1955 respectively. IDA’s bonds are AAA-rated, backed by commitments from the world’s largest economies, including the United States, making them safe and reliable investment options.

By aligning SEC exemptions across the MDBs, this bill would:

• Boost IDA’s ability to raise capital in the U.S. bond market;
  
• Lower cost for IDA, thus increasing financing for the world’s poorest nations;
  
• Ensure fair treatment of IDA alongside other development banks; and
  
• Maintain strong investor protections, allowing the SEC to revoke the exemption, if necessary.
  

By updating IDA’s regulatory framework, this legislation would strengthen U.S. leadership in sustainable economic development and ensure that the world’s most vulnerable nations have access to the financial resources that they need.

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