South Iowa News

WASHINGTON, D.C. – U.S. Representatives Zach Nunn (IA-03), Jennifer Wexton, Mike Gallagher, Raja Krishnamoorthi, Gregory Meeks, Young Kim, John Rose, and Brad Sherman have introduced bipartisan legislation aimed at preventing international financial institutions (IFIs) from supporting projects that utilize forced labor. The No Funds for Forced Labor Act, if passed, would provide U.S. officials with the power to safeguard U.S. taxpayer dollars by opposing IFI loans connected to forced labor.

In a statement regarding the legislation, Rep. Nunn emphasized the importance of ensuring that American taxpayer money is not used to support corporations that exploit forced labor. He stated, "This commonsense, bipartisan legislation will close loopholes and allow the United States to crack down on support for Chinese companies complicit in forced labor and forced labor across the world."

The need for such legislation is underscored by a 2022 report released by the Atlantic Council, which revealed that the International Financial Corporation (IFC), the private lending body of the World Bank, has provided over $486 million in financing to companies in Xinjiang. This funding was intended to support the development of the private sector in developing countries. However, it has been discovered that some of these companies are complicit in the Chinese government's use of forced labor on Uyghurs and other ethnic minorities.

The IFC and similar international financial institutions receive funding from governments worldwide, including U.S. taxpayer dollars. This means that American taxpayer money is inadvertently benefiting companies involved in the Chinese government's brutal forced labor practices. The No Funds for Forced Labor Act seeks to address this issue by requiring the U.S. Department of Treasury to oppose loan requests from international financial institutions that involve projects utilizing forced labor.

The introduction of this bipartisan legislation is a significant step towards combating forced labor and holding corporations accountable. By ensuring that U.S. taxpayer dollars are not funneled into projects that exploit vulnerable workers, the No Funds for Forced Labor Act aims to promote ethical business practices and protect human rights.

Further details regarding the No Funds for Forced Labor Act can be found in the full text of the bill. This legislation represents a crucial effort to protect the integrity of international financial institutions and prevent the unwitting support of forced labor through taxpayer funding.