Sponsors (2)
The bill increases U.S. oversight and public pressure to limit U.S.-linked financing of projects tied to forced labor—strengthening human rights protections and transparency—but risks diplomatic friction, higher compliance costs, and reduced financing for some development projects.
Workers in Xinjiang and members of affected immigrant and racial-ethnic minority communities are less likely to see U.S.-linked support for projects that use forced labor because the bill raises U.S. attention and encourages reduced financing for such projects.
Taxpayers, financial institutions, and state governments gain stronger oversight and transparency because the bill mandates project-specific vetting, mitigation plans, and multi-year Congressional reporting on IFI investments.
U.S. businesses, small-business owners, and consumers face improved protection from exposure to goods and financing tied to forced labor through greater scrutiny of supply chains and international finance.
U.S. workers, small businesses, and taxpayers may suffer if the bill escalates diplomatic tensions with China, provoking trade retaliation or other fallout that could cost jobs and raise prices.
Taxpayers, consumers, financial institutions, and companies could face higher compliance costs and slower approvals because expanded vetting, restrictions, or de-risking by IFIs may raise transaction costs and limit investment.
State governments, taxpayers, and U.S. negotiators may lose diplomatic flexibility because nonbinding statements and public reporting can create expectations without new authority or funding and can reveal negotiation positions, reducing behind-the-scenes leverage.
Based on analysis of 4 sections of legislative text.
Introduced May 8, 2025 by Richard Lynn Scott · Last progress May 8, 2025
Directs the Secretary of the Treasury to instruct U.S. Executive Directors at international financial institutions (IFIs) to use U.S. voice, vote, and influence to oppose loans or guarantees for projects that pose a significant risk of using forced labor or that are carried out by state-owned or heavily state-influenced entities in Xinjiang. Requires IFIs to provide project-specific explanations of how they screened for forced-labor risk and what mitigation, tracking, and reversal steps they will take, and requires the Treasury to report to Congress within one year and annually for five years on relevant projects and U.S. engagement. Also states congressional findings about forced labor in Xinjiang and a nonbinding Sense of Congress urging IFIs and other countries not to fund entities credibly accused of using forced labor. Defines “forced labor” by reference to existing U.S. law and explicitly includes convict and indentured labor under penal sanctions.