119-s1685

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 1685 Introduced in Senate

    (IS) ]

<DOC>

119th CONGRESS
 1st Session
 S. 1685

To require the Secretary of the Treasury to instruct the United States 
 Executive Directors at the international financial institutions to 
 advocate for opposition to projects that make use of forced labor.

_______________________________________________________________________

 IN THE SENATE OF THE UNITED STATES

 May 8, 2025

 Mr. Scott of Florida (for himself and Mr. Merkley) introduced the 
 following bill; which was read twice and referred to the Committee on 
 Foreign Relations

_______________________________________________________________________

 A BILL

To require the Secretary of the Treasury to instruct the United States 
 Executive Directors at the international financial institutions to 
 advocate for opposition to projects that make use of forced labor.

 Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

 This Act may be cited as the ``No Funds for Forced Labor Act''.

SEC. 2. FINDINGS.

 Congress makes the following findings:

    (1) The International Labour Organization has expressed 
 ``deep concern'' about the ``extensive use of forced labor in 
 the Xinjiang Uyghur Autonomous Region''.

    (2) In its 2022 annual report, the Congressional-Executive 
 Commission on China found, ``Authorities in the XUAR (Xinjiang 
 Uyghur Autonomous Region) maintained a system of forced labor 
 that involved former mass internment camp detainees and other 
 Turkic and Muslim individuals.''.

    (3) In 2022, the Atlantic Council published a report 
 detailing that the World Bank's private lending body, the 
 International Finance Corporation, determined that several 
 clients of the Corporation were active participants in the 
 People's Republic of China campaign against the Uyghur people 
 and Uyghur culture in the Xinjiang Uyghur Autonomous Region.

SEC. 3. SENSE OF CONGRESS.

 It is the sense of Congress that--

    (1) international financial institutions should not fund, 
 finance, or provide loan guarantees to any entity that has been 
 credibly accused of using forced labor; and

    (2) the United States should work with allies, partners, 
 and all countries around the globe to eliminate forced labor 
 and ensure that international financial institutions do not 
 fund projects that use forced labor.

SEC. 4. UNITED STATES OPPOSITION TO INTERNATIONAL FINANCIAL INSTITUTION 
 LOANS FOR PROJECTS THAT WOULD USE, OR HAVE A SIGNIFICANT 
 RISK OF USING, FORCED LABOR.

    (a) In General.--Title VII of the International Financial 
Institutions Act (22 U.S.C. 262d, 262c note, 262e, and 262d note) is 
amended by adding at the end the following:

``

SEC. 706. UNITED STATES OPPOSITION TO LOANS FOR PROJECTS THAT WOULD 
 USE, OR HAVE A SIGNIFICANT RISK OF USING, FORCED LABOR.

 ``

    (a) In General.--The Secretary of the Treasury shall instruct the 
United States Executive Director at each international financial 
institution (as defined in 

section 1701
            (c) (2) ) to use the voice, vote, 
and influence of the United States, to the maximum extent practicable, 
to--
 ``

    (1) oppose the provision of a loan to any project that 
 will--
 ``
        (A) pose a significant risk of using forced 
 labor; or
 ``
        (B) be carried out by a state-owned or heavily 
 state-influenced entity in the Xinjiang Uyghur 
 Autonomous Region of the People's Republic of China; 
 and
 ``

    (2) require the institution to provide, with respect to 
 each project supported by the institution, an explanation, 
 specific to the project, of--
 ``
        (A) how the institution has vetted the project 
 for forced labor risks; and
 ``
        (B) the actions taken to mitigate, track, and 
 reverse that risk.
 ``

    (b) Definition of Forced Labor.--In this section, the term 
`forced labor'--
 ``

    (1) has the meaning given the term in 

section 307 of the 
 Tariff Act of 1930 (19 U.S.C. 1307); and
 ``

    (2) includes convict labor and indentured labor under 
 penal sanctions.''.

    (b) Report.--

    (1) In general.--Not later than 1 year after the date of 
 the enactment of this Act, and annually thereafter for the next 
 5 years, the Secretary of the Treasury shall submit to the 
 committees specified in paragraph

    (2) a written report on the 
 implementation of the amendment made by subsection

    (a) , which 
 shall include details about--
        (A) any project approved by an international 
 financial institution (as defined in 

section 1701
            (c) (2) of the International Financial Institutions Act (22 
 U.S.C. 262r
            (c) (2) )) in which forced labor could 
 possibly be used; and
        (B) the efforts of the United States Executive 
 Director at each such institution to convince other 
 countries to oppose any project in which forced labor 
 could be used.

    (2) Committees specified.--The committees specified in this 
 paragraph are--
        (A) the Committee on Financial Services and the 
 Committee on Foreign Affairs of the House of 
 Representatives; and
        (B) the Committee on Foreign Relations and the 
 Committee on Banking, Housing, and Urban Affairs of the 
 Senate.

    (3) Public availability.--The Secretary of the Treasury 
 shall make the report (or an unclassified version of the 
 report) available to the public.
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