# IDB Transparency Act: Plain Language Summary

This bill is about keeping tabs on China's influence and activities within the Inter-American Development Bank (IDB), which is a major lending institution that funds development projects across Latin America and the Caribbean. The bill requires the U.S. Treasury Department to investigate and report on how much power China has gained in this organization since joining it in 2009, and it instructs the U.S. representative at the bank to use America's voting power to push back against Chinese influence.

Specifically, the Treasury Department must produce a detailed report within six months that catalogs every project the IDB has funded or financed with Chinese money or Chinese companies since 2009. This report needs to list which projects involved Chinese companies doing the actual work, how much money was involved, and whether any of these projects had problems like human rights abuses, corruption, or delays. The report also needs to examine whether the IDB is using technology from Chinese companies that the U.S. government considers security risks, and whether China has been using the bank to spread its political influence or military interests in the region. After that initial report, the Treasury must provide updates every two years for the next eight years. The unclassified portions of these reports will be posted publicly online so Americans can see what's happening.

On the enforcement side, the bill tells the U.S. Executive Director at the IDB to actively vote against or block any projects that involve significant Chinese funding or participation, especially if those projects pose risks to U.S. national security interests. The U.S. representative is also instructed to push for greater transparency at the bank and to oppose any expansion of China's voting shares. If the Treasury Department doesn't deliver the required report on time, the U.S. must vote against the bank's budget until the information is provided. The only exception is if the Treasury Secretary certifies that blocking a project would harm basic human needs or vital U.S. interests.

IDB Transparency Act

Gallagher, Mike

IDB Transparency Act This bill directs the U.S. Executive Director at the Inter-American Development Bank (IDB) to act to reduce China's influence and to promote greater transparency about China's role in the IDB. Specifically, the U.S. Executive Director must vote and advocate to reduce the influence of China's government and Chinese companies at the IDB, including by opposing any IDB funding or projects that (1) are at least 10% funded by China or Chinese companies, and (2) present risks to U.S. national interests. Additionally, the U.S. Executive Director must vote against and take other actions to oppose the acquisition of IDB stock by China or Chinese companies. The bill also directs the Department of the Treasury to provide Congress with a report on China's influence at the IDB, including an action plan to reduce Chinese involvement in IDB projects. If the report is not provided within 180 days of the bill's enactment, and until it is, the U.S. Executive Director must vote against or act to prevent a quorum for any vote related to the IDB budget.