Industrial Bank for American Manufacturing Act of 2026

Support for Technological Expansion: The Secretary of Commerce can provide direct loans, equity investments, or grants to help manufacturers expand and modernize operations related to critical and emerging technologies (Section 2(c)).

Job Training and Employment: Manufacturers receiving assistance must spend at least 1 percent of the award on employment and training activities, such as occupational skills or on-the-job training (Section 3(b)(3)).

Support for Local Workers: Manufacturers are required to spend at least 0.5 percent of the award on supportive services for their employees (Section 3(b)(4)).

Wage Protections: The bill requires that laborers and mechanics involved in the construction, alteration, or repair of qualified facilities be paid wages at rates not less than the prevailing rates for their locality (Section 4(a)(1)).

Apprenticeship Opportunities: The act mandates that a specific percentage of total labor hours for facility construction be performed by qualified apprentices (Section 4(b)(1)).

Prioritization of Struggling Areas: The Secretary is directed to prioritize awards to manufacturers located in areas that have experienced at least a 25 percent reduction in manufacturing employment between 2000 and 2023 (Section 3(d)(1)(C)).

Support for Small Businesses: The bill sets aside 10 percent of the total annual fund for covered manufacturers that are small business concerns (Section 3(d)(2)).

Financial Penalties for Labor Violations: Manufacturers that fail to meet prevailing wage requirements must pay the difference in wages plus a penalty of $5,000 per laborer or mechanic, which increases to $10,000 for intentional disregard (Section 4(a)(2)).

Apprenticeship Penalties: Manufacturers that fail to meet apprenticeship labor hour requirements may be required to pay a penalty of $50 per labor hour, which increases to $500 for intentional disregard (Section 4(b)(1) and (4)(C)).

Strict Eligibility Requirements: To be eligible, manufacturers must certify they have no outstanding tax liabilities, pending civil or criminal actions, or disputes under adjudication by the National Labor Relations Board (Section 3(a)(1)).

Limitations on Use of Funds: Manufacturers receiving assistance are prohibited from using those funds to pay dividends or repurchase shares of their own company (Section 3(b)(1)(A)).