No Funds for Forced Labor Act
- Bill Number
- H.R. 7516
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- International Affairs
- Status
- Introduced
- Latest Action
- 2026-02-11: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-03-04T09:06:52Z
AI-Generated Summary
Purpose
The "No Funds for Forced Labor Act" (H.R. 7516) aims to prevent international financial institutions (IFIs), such as the World Bank, from providing loans or funding to projects that involve or risk involving forced labor. It focuses particularly on forced labor in China's Xinjiang Uyghur Autonomous Region (XUAR) and directs the U.S. to use its influence in these institutions to oppose such funding, promoting global efforts to eliminate forced labor.
Key Provisions
- Congressional Findings: The bill cites reports from the International Labour Organization (ILO), the Congressional-Executive Commission on China (CECC), and the Atlantic Council highlighting extensive forced labor in XUAR, including involvement of former detainees and state-influenced entities.
- Sense of Congress: Expresses that IFIs should not fund entities credibly accused of forced labor, and the U.S. should collaborate internationally to ensure IFIs avoid such projects.
- U.S. Opposition to Loans:
- The Secretary of the Treasury must instruct U.S. Executive Directors at IFIs to oppose loans for projects that:
- Pose a significant risk of using forced labor (defined as labor performed involuntarily, often under threat of punishment, per the Tariff Act of 1930; includes convict labor and indentured labor under penal sanctions).
- Are carried out by state-owned or heavily state-influenced entities in XUAR.
- IFIs must provide project-specific explanations on how they have checked for forced labor risks and what steps they take to reduce, monitor, and address those risks.
- Reporting Requirements: The Treasury Secretary must submit annual reports for five years to congressional committees (House Financial Services and Foreign Affairs; Senate Foreign Relations and Banking, Housing, and Urban Affairs). Reports cover:
- Projects approved by IFIs where forced labor might be involved.
- U.S. efforts to persuade other countries to oppose such projects.
- Reports (or unclassified versions) must be made publicly available.
Significant Changes to Existing Law
- Amends Title VII of the International Financial Institutions Act (22 U.S.C. 262d et seq.) by adding a new Section 706.
- This introduces mandatory U.S. opposition to specific IFI loans related to forced labor, which was not explicitly required before. It builds on existing U.S. authority to influence IFI decisions but adds targeted instructions, definitions, and reporting obligations focused on forced labor risks, especially in XUAR.
Potential Impacts
- On Government Agencies: The U.S. Department of the Treasury gains a formal role in directing opposition to certain IFI projects, increasing administrative workload for reporting and coordination with U.S. Executive Directors.
- On Citizens: Indirectly supports global human rights by reducing funding for exploitative labor practices, potentially benefiting vulnerable populations like Uyghurs and other minorities affected by forced labor.
- On International Relations: Could strain U.S.-China ties by targeting XUAR projects, but may strengthen alliances with partners committed to human rights and labor standards. Enhances U.S. leverage in multilateral institutions to promote ethical financing worldwide.
Main Stakeholders Affected
- U.S. Government: Treasury Department and congressional committees overseeing implementation and reports.
- International Financial Institutions: Entities like the World Bank and International Finance Corporation, required to enhance vetting and provide explanations for projects.
- Foreign Entities: State-owned or influenced companies in XUAR/China, facing potential denial of IFI funding; broader global projects at risk of forced labor.
- Global Partners and Allies: Countries participating in IFIs, influenced by U.S. advocacy to align against forced labor funding.
- Affected Populations: Workers and communities in regions with forced labor risks, such as XUAR's Turkic and Muslim groups, who may benefit from reduced support for exploitative projects.
Notable Legal, Constitutional, or Political Implications
- Legal: Reinforces U.S. implementation of international labor standards (e.g., ILO conventions) through domestic law, without creating new enforcement mechanisms but leveraging existing IFI voting power. The forced labor definition aligns with trade laws like the Uyghur Forced Labor Prevention Act, ensuring consistency.
- Constitutional: Relies on Congress's authority over foreign commerce and appropriations (Article I, Section 8), directing executive branch actions without infringing on presidential foreign affairs powers.
- Political: Signals strong bipartisan U.S. commitment to countering forced labor, particularly in China, amid ongoing human rights concerns. May prompt diplomatic pushback from China but could encourage similar policies among allies, influencing global norms on ethical financing. No direct impact on U.S. domestic law or citizens' rights.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Subramanyam, Suhas [D-VA-10]
Cosponsors (11)
Rep. Nunn, Zachary [R-IA-3], Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Moolenaar, John R. [R-MI-2], Rep. Gottheimer, Josh [D-NJ-5], Rep. Kim, Young [R-CA-40], Rep. McGovern, James P. [D-MA-2], Rep. Fitzpatrick, Brian K. [R-PA-1], Rep. Beyer, Donald S. [D-VA-8], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Walkinshaw, James R. [D-VA-11], Rep. Suozzi, Thomas R. [D-NY-3]
Recent Actions
- 2026-02-11: Referred to the House Committee on Financial Services.
- 2026-02-11: Introduced in House
- 2026-02-11: Introduced in House
Bill Versions
- No Funds for Forced Labor Act — issued 2026-02-11 — PDF (5 pages)