H.R. 1764 Proposes Alignment of SEC Regulations for World Bank’s International Development Association

House Committee on Financial Services reported on March 21, 2025, that H.R. 1764, titled Aligning SEC Regulations for the World Bank’s International Development Association Act, aims to provide an exemption for the International Development Association (IDA) at the World Bank from the obligation to register securities it issues or guarantees with the Securities and Exchange Commission (SEC). However, this exemption would not apply if the Department of the Treasury determines that the IDA has provided financial assistance to any country identified by the Department of State as supporting terrorism.

In addition to the exemption, the SEC would still have the authority to request additional reports from the IDA and consult with the National Advisory Council on International Monetary and Financial Problems to suspend the exemption if necessary. The Congressional Budget Office (CBO) estimates that updating rules and processing any additional disclosures by the IDA would cost the SEC less than $500,000. Given the SEC’s ability to collect fees annually to offset its appropriation, the impact on discretionary spending from 2025 to 2030 is expected to be minimal.

Furthermore, if the SEC decides to raise fees to cover the expenses associated with implementing H.R. 1764, it would result in an increased cost for private entities subject to those assessments. CBO projects that the incremental cost of this mandate would be relatively small and remain below the threshold for private-sector mandates set by the Unfunded Mandates Reform Act. Notably, H.R. 1764 does not contain any intergovernmental mandates outlined in the UMRA.

Overall, the financial implications of H.R. 1764 are anticipated to be manageable, with minimal impact on both direct spending and revenues. While the bill introduces changes to SEC regulations for the IDA at the World Bank, the associated costs are expected to be within reasonable limits, ensuring that the exemption process runs smoothly without imposing significant financial burdens on private entities or the federal government.