Sponsors (2)
The bill increases U.S. leverage, oversight, and restrictions on multilateral financing to reduce ties to forced labor and improve accountability — potentially protecting workers and taxpayer-funded projects from complicity in abuse — but at the cost of diplomatic friction, higher compliance and economic costs, and possible delays or reductions in development financing where allegations are unresolved.
U.S. policymakers, diplomats, and allies gain stronger factual basis and coordination to apply diplomatic pressure and restrictions on entities tied to forced labor, increasing global leverage to combat human-rights abuses.
Taxpayers and the U.S. financial system face reduced risk of supporting projects that use forced labor because multilateral financing would be less likely to fund such projects.
The public, Congress, and project lenders get more transparency and oversight through required project vetting, mitigation plans, and annual reporting on forced-labor risks, improving accountability for multilateral lending.
U.S. consumers, businesses, and taxpayers could face higher costs and disrupted trade if the measures increase geopolitical tensions with China or are used to justify sanctions or trade restrictions.
Rural communities and local beneficiaries in developing countries may lose or see delays to infrastructure and development projects if multilateral financing is restricted or withdrawn over forced-labor risk concerns.
Financial institutions, project sponsors, and multilateral lenders will face increased vetting, reporting, and compliance costs and may delay projects while allegations are resolved, complicating multilateral financing decisions.
Based on analysis of 4 sections of legislative text.
Requires the Treasury to push U.S. Executive Directors at IFIs to oppose loans with significant forced-labor risk and to require project-level forced-labor vetting and mitigation explanations.
Introduced May 8, 2025 by Richard Lynn Scott · Last progress May 8, 2025
Directs the U.S. Treasury to push U.S. representatives at international financial institutions (IFIs) to oppose loans or guarantees for projects that pose a significant risk of using forced labor, and to require clear, project-level explanations of how forced-labor risks are being vetted and mitigated. It defines "forced labor" (including convict and indentured labor), asks the Treasury to report to Congress within one year and annually for five years on implementation, and says the U.S. should work with partners to stop IFIs from funding projects tied to forced labor, especially in China’s Xinjiang region.