Sponsors (6)
The bill reduces U.S.-backed financing for environmentally harmful shrimp farming to protect coastal ecosystems, but that protection may reduce development finance, weaken U.S. leverage at multilateral banks, push projects to less-regulated financiers, and harm local jobs and some U.S. supply-chain interests.
Coastal and rural communities face less environmental degradation because U.S. support at multilateral development banks will not back shrimp-farming projects tied to deforestation, mangrove loss, or pollution.
The Treasury retains the ability to grant targeted national-interest exceptions, allowing strategically important projects to proceed when clear U.S. benefits exist.
Project financing may shift to non-multilateral lenders or private actors with weaker environmental and labor standards, undermining the protections the restriction aims to achieve.
Borrowing countries could lose access to multilateral financing for aquaculture projects that create jobs and income, harming local employment and export earnings.
U.S. influence at international financial institutions may be reduced, limiting Washington's ability to reform projects and impose stronger environmental safeguards when financing would otherwise be blocked.
Based on analysis of 2 sections of legislative text.
Directs U.S. Executive Directors at international financial institutions to oppose financing for shrimp farming, processing, or shrimp exports, with a Treasury waiver and a seven-year sunset.
Requires U.S. Executive Directors at multilateral development banks and similar institutions to use the U.S. vote to oppose any institution financing for shrimp farming, shrimp processing, or shrimp exports in borrowing countries. The Secretary of the Treasury may waive the restriction for a specific project if they notify Congress that the waiver is in the national interest, and the prohibition automatically expires seven years after enactment.
Official title: Require the United States Executive Directors at the international financial institutions to oppose certain projects involving shrimp production.
Introduced June 17, 2026 by Cindy Hyde-Smith · Last progress June 17, 2026