Prohibits the use of State Department or USAID funds for programs that knowingly use goods made in the Xinjiang Uyghur Autonomous Region of China, with exceptions for activities that ensure compliance and are reported to Congress.
Nathaniel Moran
Representative
TX-1
The "No Dollars to Uyghur Forced Labor Act" prohibits the use of Department of State or USAID funds for programs or contracts that knowingly use goods mined, produced, or manufactured in the Xinjiang Uyghur Autonomous Region of China or by entities complicit in forced labor, unless the Secretary of State provides specific authorization and notifies Congress. The Secretary of State must provide a report to Congress on activities carried out in violation of this prohibition, challenges in enforcement, and a plan to improve enforcement. "Forced labor" is defined in section 307 of the Tariff Act of 1930 and "covered entity" is defined as an entity listed under section 2(d)(2)(B) of Public Law 117-78.
New Bill Aims to Block State Department & USAID Funds from Supporting Forced Labor in Xinjiang
A new piece of legislation, the "No Dollars to Uyghur Forced Labor Act," is on the table, and its goal is pretty straightforward: to stop U.S. tax dollars from bankrolling activities linked to forced labor in China's Xinjiang Uyghur Autonomous Region (XUAR).
Keeping Our Money Out of Forced Labor Zones
So, what's the core of this bill? Section 2 lays it out: funds authorized for the Department of State or the United States Agency for International Development (USAID) can't be used for any policy, program, or contract that knowingly uses goods mined, produced, or manufactured in the XUAR. This also applies to goods from a "covered entity," which refers to entities already flagged under the Uyghur Forced Labor Prevention Act (Public Law 117-78) for their connections to forced labor. Think of it as an attempt to scrub U.S. foreign aid and diplomatic spending clean of any association with these practices. The bill defines "forced labor" by pointing to the definition already established in Section 307 of the Tariff Act of 1930, which basically covers work extracted under threat and not offered voluntarily.
Waivers, Watchdogs, and What's Next
Now, it's not an absolute iron wall. The Secretary of State can authorize activities that would otherwise be prohibited, but there are hoops to jump through. First, the partner, implementor, or contractor involved has to give written assurance they won't use goods from the XUAR and will set up a system to ensure they stay compliant. Second, key folks in Congress—the Chair and Ranking Member of the House Committee on Foreign Affairs and the Senate Committee on Foreign Relations—must be notified 15 days before the activity gets the green light. Of course, this is assuming the activity isn't banned for other reasons too.
To keep tabs on how this is all working out, the bill requires the Secretary of State to submit an annual report for three years. This report needs to detail any prohibited activities that slipped through the cracks without authorization, any challenges faced in actually enforcing these rules, and a plan to beef up enforcement. This is basically a check-up to see if the policy is doing its job or if it needs tweaking.
The Real-World Ripple Effect
For organizations and companies that receive grants from or contract with the State Department or USAID, this means more scrutiny on their supply chains if their work touches anywhere near the XUAR or involves entities on that "covered" list. They'll need to be extra diligent about where their materials and goods are coming from. This legislation essentially extends the principles of the Uyghur Forced Labor Prevention Act directly into the spending habits of these two key government agencies. The annual reporting will also shine a light on how tough it is to trace global supply chains and ensure compliance, which could lead to better strategies down the line. It's about making sure U.S. international engagement doesn't inadvertently prop up systems of forced labor.