Sponsors (13)
The bill increases U.S. pressure, transparency, and withholding of multilateral financing tied to forced labor—reducing U.S. complicity in human-rights abuses and strengthening global norms—but at the cost of higher compliance burdens, potential reductions in development financing, and heightened diplomatic and economic tensions with affected countries (notably China).
People subjected to forced labor and U.S. taxpayers: the bill directs U.S. Executive Directors at international financial institutions (IFIs) to oppose projects tied to forced labor (including in Xinjiang) and requires project-specific vetting and mitigation explanations, reducing U.S.-supported complicity in human-rights abuses.
Vulnerable workers abroad and allied governments: the bill encourages U.S. coordination with partners and raises international awareness about forced labor, strengthening pressure for accountability and higher global labor standards.
U.S. consumers and taxpayers: by supporting congressional and multilateral scrutiny of corporations and financial institutions implicated in abuses, the bill can reduce consumer exposure to goods made with forced labor.
U.S. exporters, consumers, and taxpayers: findings and pressure focused on Xinjiang and related measures could increase geopolitical tensions with China, complicating trade and diplomacy and risking economic fallout.
U.S. businesses (especially small firms) and supply chains: compliance costs, potential sanctions or import restrictions, and disrupted supply chains could raise costs for businesses and consumers.
Recipient countries and local populations in developing areas: opposing or withholding IFI loans over forced-labor allegations could reduce financing for development projects, slowing economic development and limiting public services.
Based on analysis of 4 sections of legislative text.
Directs Treasury to push U.S. Executive Directors at international financial institutions to oppose loans tied to forced labor risks in Xinjiang, require project-level vetting explanations, and report to Congress.
Introduced February 11, 2026 by Suhas Subramanyam · Last progress February 11, 2026
Directs the Treasury Secretary to instruct U.S. Executive Directors at multilateral development banks and other international financial institutions to use the U.S. voice and vote to oppose loans and projects that pose a significant risk of using forced labor in China’s Xinjiang Uyghur Autonomous Region (XUAR) or that are carried out by state-owned or heavily state-influenced entities in that region. Requires those institutions to provide project-specific explanations of forced-labor vetting, mitigation, tracking, and reversal actions, defines “forced labor” by reference to U.S. tariff law, and mandates a public report to Congress within one year and annually for five years about projects of concern and U.S. efforts to block them. Also records findings from international and U.S. reports about forced labor abuses in the XUAR and states a non-binding congressional view that international financial institutions should not fund entities credibly accused of using forced labor and that the U.S. should coordinate with partners to prevent such funding.