Sponsors (13)
The bill increases U.S. scrutiny, transparency, and diplomatic pressure to reduce IFI-funded projects linked to forced labor—strengthening human-rights protections and reducing reputational and supply-chain risks, but risking higher compliance costs, delayed development projects, and heightened geopolitical friction with China and affected partners.
Uyghurs and other at-risk workers abroad — the bill raises U.S. attention and reduces U.S.-backed financing for projects tied to forced labor, which should lower demand for goods produced with forced labor and help protect vulnerable workers.
U.S. taxpayers and citizens — requires public reporting and highlights IFI ties to alleged abuses, increasing transparency, congressional oversight, and prompting review of U.S. multilateral finance policy and diplomatic coordination against forced labor.
U.S. markets, investors, and financial institutions — mandates project-level vetting and mitigation plans that reduce supply-chain forced-labor risks and reputational exposure for U.S.-linked projects and investors.
American taxpayers, consumers, and importers — targeting projects tied to Xinjiang and forced labor can heighten geopolitical tensions with China and other partners, risking retaliation and higher trade costs or disrupted cooperation.
Countries receiving IFI funding and development beneficiaries — stricter scrutiny could delay, scale back, or block multilateral projects (including in sensitive regions), slowing development outcomes and reducing delivery of infrastructure and aid.
U.S. diplomacy and governance — the measure is nonbinding and could complicate negotiations within IFIs, create diplomatic friction with partner countries, and expose sensitive deliberations through public reporting without providing enforceable tools.
Based on analysis of 4 sections of legislative text.
Requires U.S. representatives at international financial institutions to oppose loans with forced-labor risk (especially in Xinjiang), demand project vetting and mitigation explanations, and report to Congress annually.
Introduced February 11, 2026 by Suhas Subramanyam · Last progress February 11, 2026
Directs the Treasury Secretary to instruct U.S. Executive Directors at international financial institutions (IFIs) to oppose loans or guarantees for projects that pose a significant risk of using forced labor—with special focus on projects carried out by state-owned or state-influenced entities in Xinjiang—and to require project-specific vetting and mitigation explanations. It also expresses Congress’s view that IFIs should not fund entities credibly accused of using forced labor, and requires the Treasury to report to Congress (and make unclassified versions public) on implementation within one year of enactment and annually for five years.