H.R. 7516: No Funds for Forced Labor Act (119th Congress) Bill Summary

The No Funds for Forced Labor Act, introduced in the U.S. House of Representatives, aims to address the use of forced labor in international projects financed by global financial institutions. The bill requires the Secretary of the Treasury to direct U.S. representatives at these institutions to actively oppose any loans or funding for projects that either involve or pose a significant risk of employing forced labor. This directive specifically highlights projects carried out by state-owned or heavily state-influenced entities in the Xinjiang Uyghur Autonomous Region of China, which has been cited for human rights abuses, including the use of forced labor.

Key Provisions of the Bill

Opposition to Loans: U.S. representatives at international financial institutions would be instructed to oppose loans for projects with a significant risk of forced labor. This includes projects in Xinjiang.
Accountability Measures: The bill mandates that these institutions provide detailed explanations of how they assess and mitigate forced labor risks associated with their projects.
Definition of Forced Labor: The bill defines forced labor consistent with existing U.S. law, incorporating elements like convict labor and indentured labor.

Reporting Requirements

Within one year of the bill’s enactment and annually for the following five years, the Secretary of the Treasury must submit a report to Congress detailing the implementation of these measures. This report will include:

Information about projects approved where forced labor might be utilized.
The efforts of U.S. representatives to persuade other countries to oppose such projects.

The report is intended to be made publicly available to ensure transparency regarding the effectiveness of the Act's implementation.

International Context

The bill reflects congressional findings on the extensive use of forced labor in Xinjiang, supported by reports from the International Labour Organization and the Congressional-Executive Commission on China. It signifies a U.S. commitment to combat forced labor globally by leveraging its influence within international financial institutions and fostering collaboration with allies to eliminate this practice.