Sponsors (2)
The bill increases U.S. oversight and gives policymakers tools to limit PRC influence in IDB-financed projects—boosting transparency and protecting strategic interests—but risks delaying or politicizing development financing, raising costs, straining multilateral relationships, and imposing new compliance burdens.
Taxpayers, Congress, state governments, and the public gain substantially improved oversight and transparency because the bill requires timely reports, public unclassified summaries, and clear briefing recipients on IDB projects and PRC ties.
U.S. policymakers and taxpayers can limit PRC influence in IDB-financed projects because the bill authorizes blocking or curbing IDB actions tied to PRC entities and requires an executive action plan to reduce PRC involvement.
U.S. and allied firms — including small businesses — stand to win more IDB contracts and procurement opportunities because the bill promotes capacity-building and procurement policies that favor U.S./partner suppliers and emphasize value, transparency, and integrity.
Local governments, borrowers, and taxpayers could face delayed or reduced IDB financing because U.S. opposition or blocking of projects tied to PRC entities may stall loans and eliminate some financing alternatives.
IDB projects may become more expensive and diplomatically fraught for borrowers and U.S. partners because prioritizing U.S./allied suppliers and excluding lower-cost competitors can raise costs and politicize procurement decisions.
U.S. companies and small businesses may face broader compliance burdens because the bill’s expansive definition of 'PRC entity' (including those 'subject to jurisdiction or direction') could sweep in firms with only limited ties to the Chinese government.
Based on analysis of 6 sections of legislative text.
Directs Treasury to use U.S. influence at the IDB to reduce PRC participation, favor U.S./ally procurement, boost IDB-DFC collaboration, and produce detailed reports on PRC influence and projects.
Introduced July 31, 2025 by David Harold McCormick · Last progress July 31, 2025
Directs the Treasury Secretary to use the U.S. position at the Inter-American Development Bank (IDB) to limit the People’s Republic of China’s (PRC) and PRC-affiliated entities’ participation in IDB activities, to push IDB procurement toward U.S. companies and allied partners, to strengthen coordination with the U.S. international development finance agency, and to produce detailed reports on PRC influence, projects, and potential risks to U.S. national and economic security. Requires reviews, votes or quorum-blocking where PRC trust funds or risky PRC participation are involved, reporting on violations of U.S. sanctions/export controls, and a Treasury-led action plan and detailed disclosures about PRC-linked projects and participants.