SHIELD Act

Key Points

• This bill would require the President to impose sanctions on any foreign person or company that uses forced labor or child labor in cobalt mining. Cobalt is a critical mineral used in batteries for electric vehicles, phones, and laptops.
• Sanctioned individuals and companies would have their U.S. assets frozen and all property transactions blocked, using the broad powers of the International Emergency Economic Powers Act.
• Foreign individuals found to be involved in these labor abuses would be banned from entering the United States, and any existing visas would be immediately revoked.
• The bill includes exceptions for humanitarian aid like food, medicine, and medical devices. The President can also waive sanctions if needed for national security, with 15 days notice to Congress.
• The sanctions authority would last for seven years after the law is enacted, and violations would carry the same penalties as other violations under the International Emergency Economic Powers Act.