H.R. 7516 — No Funds for Forced Labor Act

This section states congressional findings concerning forced labor and related activities targeting Uyghurs in China's Xinjiang Uyghur Autonomous Region, including (1) the International Labour Organization's expression of deep concern over the region's extensive use of forced labor; (2) the Congressional-Executive Commission on China's 2022 annual report on authorities maintaining a system of forced labor involving former mass internment camp detainees and other Turkic and Muslim individuals; and (3) a 2022 Atlantic Council report detailing the International Finance Corporation's determination that several clients participated in the People's Republic of China's campaign against Uyghur people and culture.

This section expresses the sense of Congress that (1) international financial institutions should not fund, finance, or provide loan guarantees to any entity credibly accused of using forced labor; and (2) the United States should work with allies, partners, and countries worldwide to eliminate forced labor and ensure such institutions do not fund projects using forced labor.

This section amends Title VII of the International Financial Institutions Act to direct the Secretary of the Treasury to instruct the U.S. executive director at each international financial institution (as defined in section 1701(c)(2), i.e., multilateral development banks such as the World Bank) to, to the maximum extent practicable—(1) oppose loans for any project that poses a significant risk of using forced labor (as defined in 19 U.S.C. 1307, i.e., work exacted under menace of penalty without voluntary offer, including convict labor and indentured labor under penal sanctions) or is carried out by a state-owned or heavily state-influenced entity in China's Xinjiang Uyghur Autonomous Region; and (2) require the institution to provide project-specific explanations of how it vetted the project for forced labor risks and the actions taken to mitigate, track, and reverse those risks. It further requires the Secretary to submit a report on implementation to the House Committees on Financial Services and Foreign Affairs and the Senate Committees on Foreign Relations and Banking, Housing, and Urban Affairs not later than one year after enactment and annually thereafter for five years, detailing any approved projects where forced labor could possibly be used and U.S. executive director efforts to oppose them, with public availability of the report (or an unclassified version).