Congress moves to block World Bank funding for forced labor projects
H.R. 7516 — No Funds for Forced Labor Act · Filed by Suhas Subramanyam (D-VA) · 12 cosponsors · Introduced Feb 11, 2026 · Referred to committee
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What it does
This bill directs the U.S. Treasury Secretary to instruct American representatives at international financial institutions (like the World Bank) to oppose loans to projects that use forced labor or are controlled by the Chinese government in Xinjiang. It requires these institutions to publicly explain how they vet projects for forced labor risks and what steps they take to prevent it. The bill also mandates annual public reports on implementation for six years.
Why we flagged it
The bill's core function is to leverage U.S. voting power at international financial institutions to block funding for forced-labor projects, particularly in Xinjiang. It is a human rights and labor-standards enforcement tool, not a trade measure or sanctions regime.
What the text implies
- May create diplomatic friction with countries whose state-owned enterprises operate in Xinjiang or rely on World Bank financing, potentially affecting broader U.S.-China relations.
- Reporting requirements may expose gaps in due diligence practices at international financial institutions, potentially triggering broader governance reforms.
The full analysis lists 3 implications of this text.
Who it affects
Ordinary citizens benefit from a policy that uses U.S. leverage to prevent international financial institutions from funding projects involving forced labor and human rights abuses.