Stops the State Department and USAID from using their funds for any policy, program, or contract that knowingly uses goods from China’s Xinjiang region or from entities tied to forced labor, unless a narrow exception is granted. It pushes grantees and contractors to build strong supply‑chain checks to avoid forced‑labor goods.

Any exception requires written assurances from the partner that they will not use such goods and will set up a compliance system, plus a 15‑day advance notice to key congressional leaders. The Secretary of State must submit annual reports for three years on violations, enforcement challenges, and plans to improve enforcement.