No Funds for Forced Labor Act

Key Points

• This bill would require the U.S. government to vote against loans from international banks for any project that might use forced labor. It specifically targets projects in the Xinjiang region of China, where there are major concerns about the treatment of Uyghur people and other minority groups.
• International financial institutions, such as the World Bank, would be required to explain exactly how they check projects for forced labor risks. They would also need to show what specific steps they are taking to stop or fix those risks before they can receive support from the United States.
• The Treasury Department would have to send a report to Congress every year for the next five years. This report would list any approved projects that might involve forced labor and describe how U.S. officials are trying to convince other countries to join them in opposing these projects.
• The goal of this policy is to ensure that global funding supported by the U.S. does not contribute to human rights abuses. By using the U.S. 'voice and vote' at international banks, the government aims to pressure these organizations to be more careful about who they lend money to.

Impact Analysis

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