Sponsors
The bill increases U.S. tools and oversight to prevent funds from reaching designated bad actors and to detect risks in sub-award chains, but it risks politicizing IMF allocations, reducing multilateral cooperation, delaying liquidity or aid where needed, and imposing compliance costs on NGOs and agencies.
Taxpayers and American security: U.S. foreign assistance is less likely to be diverted to the Taliban or other terrorist groups because prime awardees and agencies must take steps to prevent sub-award funding from reaching designated terrorist actors.
Taxpayers and U.S. policymakers: Countries designated as genocidal or as state sponsors of terrorism would be blocked from receiving new IMF Special Drawing Rights (SDRs), reducing those regimes' access to international liquidity.
Financial institutions and U.S. negotiators: The bill strengthens U.S. leverage at the IMF by pushing for institutional rules that limit resource flows to designated regimes, increasing U.S. influence over how multilateral liquidity is deployed.
Financial institutions and taxpayers: Conditioning IMF SDR access on U.S. foreign-policy designations may reduce global IMF cooperation and complicate multilateral consensus, potentially delaying SDR allocations that support global liquidity and economic recovery.
Vulnerable populations and humanitarian responders: Blocking IMF liquidity to designated countries could limit policy options for addressing humanitarian or economic crises in those countries, potentially worsening civilian conditions.
Nonprofits and conflict-affected civilians: Tighter vetting and review requirements could slow delivery of humanitarian aid while reviews occur, delaying life‑saving assistance to vulnerable populations (including children and youth) in conflict areas.
Based on analysis of 3 sections of legislative text.
Directs U.S. IMF representatives to oppose SDR allocations to countries designated as genocide perpetrators or state sponsors of terrorism and requires reviews and compliance proof to prevent U.S. aid reaching terrorist groups.
Introduced January 15, 2025 by W. Greg Steube · Last progress January 15, 2025
Directs the U.S. Treasury to instruct the U.S. Executive Director at the IMF to oppose any Special Drawing Rights (SDR) allocations to countries the Secretary of State finds to be perpetrators of genocide or state sponsors of terrorism, and to push the IMF to adopt a rule barring such allocations. Requires Treasury, State, and USAID to jointly review U.S. assistance to NGOs and international organizations to ensure funds are not diverted to the Taliban, terrorist groups, or countries that harbor them, and to report to Congress within 90 days. Within 180 days, each agency must require prime awardees to show that sub-awardees comply with U.S. anti‑terrorism financing laws.