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

This section defines four terms for purposes of the Act: (1) "appropriate congressional committees" as the Senate Committee on Foreign Relations and the House Committees on Foreign Affairs and Financial Services; (2) "IDB" as all current and former institutions in the Inter-American Development Bank Group, including the Inter-American Development Bank, Inter-American Investment Corporation (IDB Invest), and IDB Lab; (3) "PRC" as the People's Republic of China, including Hong Kong and Macau but excluding Taiwan; and (4) "PRC entity" as any corporation, company, or similar entity owned by, controlled by, or subject to the jurisdiction or direction of the PRC government.

This section directs the Secretary of the Treasury, in consultation with the Secretary of State, to instruct the U.S. Executive Director at the Inter-American Development Bank (IDB) to use the U.S. voice, vote, and influence to reduce the influence of the People's Republic of China (PRC) and PRC entities in IDB operations, activities, and projects. This includes by (1) reviewing IDB projects, loans, grants, or other financing involving PRC entities or contracts for risks to U.S. national and economic security interests; and (2) voting against (A) any such project or financing that includes PRC trust funds at the IDB or, after review, poses identified security risks; and (B) issuance, sale, or transfer of additional IDB shares to the PRC that increases its voting share relative to the U.S.

This section directs the Secretary of the Treasury to instruct the U.S. Executive Director at the Inter-American Development Bank (IDB) to use the voice, vote, and influence of the United States to advocate for (1) increased internal and external IDB capacity-building to encourage procurement from entities in the United States and U.S. ally or partner IDB member countries, rather than from the People's Republic of China; and (2) IDB procurement policies that prioritize value for money, transparency, and integrity over lowest upfront cost.

This section directs the Secretary of the Treasury to instruct the U.S. executive director at the Inter-American Development Bank (IDB) to use the voice, vote, and influence of the United States to encourage collaboration between the IDB and the United States International Development Finance Corporation (DFC) on projects, financing, loans, or grants in IDB borrowing member countries. It further requires the DFC chief executive officer, not later than 180 days after enactment, to submit to the appropriate congressional committees a report providing (1) an overview of DFC-IDB collaboration since the 2019 memorandum of understanding between the IDB and DFC's predecessor agency on investments in Latin America and the Caribbean and (2) an analysis of potential areas to expand such collaboration in IDB borrowing member countries.