No Funds for Forced Labor Act

Opposition to Forced Labor Projects: The bill instructs the Secretary of the Treasury to have United States Executive Directors oppose loans for projects that pose a significant risk of using forced labor (Section 4(a)(1)(A)). This aims to prevent the financing of labor practices that the International Labour Organization has expressed concern about regarding the Xinjiang Uyghur Autonomous Region (Section 2).

Targeting State-Influenced Entities: The bill directs opposition toward projects carried out by state-owned or heavily state-influenced entities in the Xinjiang Uyghur Autonomous Region (Section 4(a)(1)(B)). This addresses findings that authorities in that region maintained a system of forced labor involving former mass internment camp detainees and other individuals (Section 2).

Increased Transparency and Accountability: The bill requires international financial institutions to provide specific explanations on how they vet projects for forced labor risks and the actions taken to mitigate those risks (Section s 4(a)(1)(2)). Additionally, it requires the Secretary of the Treasury to submit annual reports to Congress regarding these efforts and make those reports available to the public (Section 4(b)).