L’Ouverture Economic Development Plan for Haiti Act of 2025

Bill Number: H.R. 1114
Origin Chamber: House
Congress: 119th Congress, Session 1
Policy Area: International Affairs
Status: Introduced
Latest Action: 2025-02-07: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Last Updated: 2025-12-12T09:07:04Z

AI-Generated Summary

Purpose of the Legislation

The L'Ouverture Economic Development Plan for Haiti Act of 2025 aims to establish a dedicated fund to support Haiti's economic growth, private sector development, and democratic stability. It seeks to address historical injustices, reduce poverty and irregular migration from Haiti, and promote sustainable industrialization while leveraging the contributions of the Haitian American diaspora. The overall goal is to create jobs and prosperity in Haiti, aligning with U.S. national security interests by fostering a stable partner in the Western Hemisphere and countering external influences like debt from other countries.

Key Provisions

Findings Section: Outlines Haiti's historical context, including past U.S. embargo, French indemnity (equivalent to $21 billion today), contributions to U.S. expansion (e.g., Louisiana Purchase), and modern challenges. It highlights the 1.2 million Haitian Americans, $4 billion in annual remittances (over one-fifth of Haiti's GDP), and the need for $19.3 billion in development aid to achieve goals like 7% GDP growth, poverty elimination, and improved education and health.

Purposes:
Promote Haitian private sector growth, especially in micro/small/medium businesses, agriculture, energy, manufacturing, tourism, and U.S.-Haiti joint ventures involving the diaspora.
Provide tools like equity investments, loans, grants, technical assistance, and training to build an accountable democratic system.
Support industrialization for full employment and high human development standards, reducing migration pressures.

Statements of Policy:
Recognize U.S.-Haiti historical ties and Haiti's sovereignty.
Prioritize democratic elections, anti-corruption, rule of law, press freedom, and human rights (e.g., via Global Magnitsky sanctions).
Enhance security through support for Haitian National Police, anti-gang efforts, firearms trafficking controls, and disarmament programs.
Address humanitarian needs (food, health, education) and economic goals like infrastructure (roads, electricity, ports), trade preferences (e.g., under existing Haiti acts), entrepreneurship, and diaspora collaboration.
Encourage international coordination and environmental resilience.

Haitian American Enterprise Fund for Haiti:
President designates a private, nonprofit 501(c)(3) organization as the Fund, operated by the CEO of the U.S. International Development Finance Corporation (USIDFC), with consultation from USAID.
The Fund is not a U.S. government entity; its staff are not federal employees.

Oversight Panel:
A 9-member board: 5 appointed by USIDFC CEO (U.S. citizens or U.S.-resident Haitians with democracy/free-market experience), 2 by the President (U.S. citizens committed to Haiti's development), and 2 Haitian citizens with business/finance expertise.
Encourages consultations with other U.S. enterprise funds, multilateral banks (e.g., World Bank), and stakeholders like private sector, civil society, and environmental groups.

Investments and Activities:
Focus on private sector development (e.g., businesses, industries like manufacturing textiles or pharmaceuticals), infrastructure (e.g., electricity grids, roads, water systems), and job creation to curb migration.
Authorized tools: Equity, loans, grants (limited to 20% of federal funds), guarantees, technical training.
Priorities: Haitian government-identified sectors; considerations include human rights, environment, U.S. economic impacts, and commercial viability.
Establish financial instruments for private investments in Haitian projects, especially those aiding relief and local businesses.

Administration and Limitations:
Reinvest returns without returning to Treasury; seek private venture capital but without investor oversight.
Limits: No personal benefits to staff beyond salary; 15% of funds for operations/feasibility studies.
Audits: Annual independent audits plus Government Accountability Office reviews for waste/fraud; strict recordkeeping.

Reporting Requirements:
Public annual reports on activities and viability; congressional reports on performance, audits, and projections.
Oversight Panel reports to Congress/President on implementation successes/challenges.
Post-repayment reports if funds aren't fully repaid.

Termination and Funding:
Ends by December 31, 2031, with full repayment of U.S. funds to Treasury.
Authorizes $1 billion annually for fiscal years 2026–2031, available until expended or terminated.
Exempts Fund activities from other laws, allowing executive agencies to support it.

Significant Changes to Existing Law

This bill introduces a new, Haiti-specific enterprise fund modeled on prior U.S. funds (e.g., for Eastern Europe or Africa), but uniquely emphasizes the Haitian diaspora and historical reparative context. It builds on laws like the Global Fragility Act (2019) for stability strategies and trade acts (e.g., HOPE/HELP Acts for Haiti preferences) by mandating coordination. Unlike general aid programs, it creates a self-sustaining investment vehicle with private nonprofit status, repayment requirements, and diaspora involvement, shifting from grants to equity/loans for long-term viability. It also explicitly counters "debt-trap" diplomacy (e.g., from China) and integrates human rights enforcement via existing sanctions.

Potential Impacts

Government Agencies: Increases workload for USIDFC (operations/oversight), USAID (consultations), and State Department (policy alignment); enables streamlined support without new bureaucracy. Congressional committees gain reporting for accountability.

Citizens:
Haitian Americans (1.2+ million) benefit through diaspora-led ventures, remittances leverage, and cultural/economic ties.
Haitians gain from job creation, infrastructure, poverty reduction, and reduced migration incentives; aims to keep families together by building local opportunities.

International Relations: Strengthens U.S.-Haiti partnership, promotes regional stability in the Caribbean (reducing crime/narcotics/migration), and encourages multilateral aid coordination. Could counter Chinese influence in Haiti by offering alternative development paths; supports U.N. Sustainable Development Goals and may influence elections/security transitions.

Main Stakeholders Affected

U.S. Government Entities: USIDFC, USAID, Congress (funding/oversight), and executive agencies providing support.
Haitian Government and People: Benefits from investments in governance, security, and economy; Haitian National Police and civil society empowered.
Haitian American Diaspora: Key role in joint ventures, remittances, and expertise sharing; potential for investment returns.
Private Sector: U.S. and Haitian businesses (e.g., in manufacturing, energy) gain opportunities; investors via financial instruments.
International Organizations: World Bank, Inter-American Development Bank, U.N. agencies collaborate on infrastructure and goals.
Civil Society/NGOs: Human rights groups, labor, environmental organizations consulted and funded for anti-corruption, women's/youth empowerment.

Notable Legal, Constitutional, or Political Implications

Legal: Establishes a quasi-private entity with federal funding but independent status, raising questions on accountability (addressed via audits/repayment). Exempts from certain laws to enable flexibility, potentially streamlining aid but requiring careful oversight to avoid misuse. Integrates existing frameworks (e.g., Global Magnitsky for sanctions) without altering them.

Constitutional: Involves appropriations ($6 billion total), fulfilling Congress's spending power; emphasizes sovereignty and non-interference, aligning with foreign affairs clause. No direct challenges noted, but diaspora/U.S. citizen involvement could invoke equal protection considerations if benefits are uneven.

Political: Promotes U.S. soft power through development aid, potentially bipartisan appeal via migration/security focus, but historical findings (e.g., embargo/indemnity) may spark debate on reparations. Introduced by Democratic representatives, it signals priority on equity in foreign policy; termination/repayment ensures fiscal responsibility, mitigating long-term debt concerns.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Cherfilus-McCormick, Sheila [D-FL-20]

Cosponsors (10)

Rep. Schakowsky, Janice D. [D-IL-9], Rep. Jackson, Jonathan L. [D-IL-1], Rep. Frost, Maxwell [D-FL-10], Rep. Clarke, Yvette D. [D-NY-9], Rep. Lawler, Michael [R-NY-17], Rep. Wilson, Frederica S. [D-FL-24], Rep. Salazar, Maria Elvira [R-FL-27], Rep. Goldman, Daniel S. [D-NY-10], Rep. DeGette, Diana [D-CO-1], Rep. Bell, Wesley [D-MO-1]

Recent Actions

2025-02-07: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-02-07: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
2025-02-07: Introduced in House
2025-02-07: Introduced in House

Bill Versions

L’Ouverture Economic Development Plan for Haiti Act of 2025 — issued 2025-02-07 — PDF (27 pages)