S. 2578 — Strengthening the Rule of Law in the Brazilian Amazon Act

This section defines terms for purposes of the Act, including (1) "crimes," meaning any crime related or contributing to illegal fishing and wildlife trade, illicit mining, or illegal logging and land-clearing in the Brazilian Amazon, as well as associated corruption, financial crimes, and violent crimes; (2) "international financial institutions," meaning the World Bank Group, Inter-American Development Bank Group, and International Monetary Fund; and (3) "relevant federal agencies," meaning the Departments of State, Justice, Treasury, Homeland Security, Agriculture, and Interior; the United States Agency for International Development; the National Aeronautics and Space Administration; and any other federal agency determined relevant by the President.

This section directs the Chief Executive Officer of the United States International Development Finance Corporation (DFC) to consider placing a staff member in Brazil to (1) identify and implement sustainable and viable economic opportunities in the Brazilian Amazon and (2) identify investment risks and mitigation measures related to operations and actors contributing to criminal activity there. It further requires the DFC CEO to submit to Congress, not later than 180 days after enactment of this Act, a report describing such identified opportunities and the most significant barriers to greater investment in sustainable economic opportunities in the Brazilian Amazon.

This section directs the Secretary of State, through the Assistant Secretary for International Narcotics and Law Enforcement Affairs and in coordination with relevant agencies, to support Brazil's efforts to disrupt transnational criminal networks contributing to deforestation and community destruction in the Brazilian Amazon by providing capacity-building and technical assistance, including (1) information sharing, training, and capacity-building for Brazilian agencies; (2) collaboration on tracing illicit funds; (3) support for investigations of deforestation-related crimes, environmental degradation, money laundering, asset laundering, or corruption; (4) assistance identifying crime proceeds for asset recovery; and (5) U.S. assistance to related funding mechanisms. The section further directs the USAID Administrator, in consultation with relevant agencies, to provide financial and technical assistance to prevent such crimes by promoting sustainable livelihoods, protection of Indigenous Peoples' and local communities' rights, lawful economic activities (e.g., mining, sustainable agriculture, forest-based activities), and management of protected areas including Indigenous territories and habitats of threatened species. Additionally, the section requires the Secretary of State, in coordination with relevant agencies and NGOs, to submit to Congress a report on progress under these provisions within 180 days of enactment and annually thereafter for five years; and authorizes appropriations of up to $10 million for the Department of State for each of FY2025 through FY2028 to carry out these activities.

This section directs the Secretary of State, in coordination with relevant federal agencies, to submit to Congress, not later than 180 days after enactment, a report on drivers of deforestation and environmental degradation in the Brazilian Amazon that includes (1) a description of agricultural commodities, illegal timber, minerals, and wildlife entering the U.S. market contributing to such deforestation and degradation; (2) a description of the People's Republic of China's role in facilitating illicit resource extraction and environmental degradation, including deforestation, in the Brazilian Amazon; (3) the funding levels and efficacy of U.S. foreign assistance programs in identifying and disrupting criminal elements operating in the Brazilian Amazon; and (4) an assessment of the government of Brazil's contributions to countering such criminal elements.

This section directs the Secretary of the Treasury, notwithstanding any other provision of law (including any Executive order), to instruct the U.S. executive director to each international financial institution, in consultation with relevant federal agencies, to use the U.S. voice, vote, and influence (1) to prioritize promoting sustainable and broad-based development in the Brazilian Amazon; and (2) to oppose any loans or programs at such institutions that would facilitate or exacerbate deforestation and environmental degradation there.