S. 2626: Strengthening United States Leadership at the IDB Act

This bill, known as the Strengthening United States Leadership at the IDB Act, aims to enhance the role of the United States within the Inter-American Development Bank (IDB). The bill has the following key provisions:

1. U.S. Influence at the IDB

The bill instructs the Secretary of the Treasury, in consultation with the Secretary of State, to guide the U.S. Executive Director at the IDB to:

• Use American influence to minimize the involvement of the People's Republic of China (PRC) and Chinese entities in IDB operations and projects.
• Conduct reviews of IDB projects that might involve the PRC or its entities, specifically assessing any potential risks these could pose to U.S. national and economic security.
• Vote against projects that involve PRC funds or that have been deemed a risk after official reviews.
• Oppose any increase in Chinese voting power at the IDB through additional share issuance.

2. Encouraging Procurement from U.S. and Partner Entities

The Secretary of the Treasury is also tasked with advocating for the following actions within IDB operations:

• Increase capacity-building efforts that promote procurement from U.S. and allied country entities rather than Chinese entities.
• Implement procurement policies that prioritize value for money, transparency, and integrity instead of merely the lowest cost.

3. Collaboration with the U.S. Development Finance Corporation

The bill encourages collaboration between the IDB and the U.S. International Development Finance Corporation (DFC). The Secretary of the Treasury is directed to:

• Promote joint projects and financing initiatives within IDB borrowing member countries.
• Require a report from the DFC within 180 days after the bill's enactment. This report should summarize past collaborations with the IDB and suggest future possibilities for cooperation.

4. Definitions and Scope

The bill includes definitions for key terms, such as:

• IDB: Encompasses the Inter-American Development Bank and its related entities.
• PRC: Refers to the People's Republic of China, including its special administrative regions, excluding Taiwan.
• PRC Entity: Any organization under the control of the PRC's government.
• Appropriate Congressional Committees: The relevant Senate and House committees that will oversee actions related to this bill.

5. Legislative Purpose

The primary goal of the legislation is to strengthen U.S. leadership within the IDB and secure its interests while reducing the influence of China in the region's development projects.

Relevant Companies

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