[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9912 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 9912
To establish a program in the Department of Commerce to support
expansion, modernization, and other improvements to critical and
emerging technologies operations within the United States, and for
other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
July 23, 2026
Mr. Khanna (for himself, Mrs. Dingell, and Mr. Suozzi) introduced the
following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To establish a program in the Department of Commerce to support
expansion, modernization, and other improvements to critical and
emerging technologies operations within the United States, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Industrial Bank for American
Manufacturing Act of 2026''.
SEC. 2. ESTABLISHMENT OF INDUSTRIAL BANK FOR AMERICAN MANUFACTURING.
(a) In General.--There is established in the Treasury a fund, to be
known as the ``Industrial Bank for American Manufacturing'' (in this
Act referred to as the ``Fund'') to be available to the Secretary of
Commerce, without subsequent appropriations, for purposes of carrying
out the requirements of this Act.
(b) Deposits.--Each fiscal year, there shall be deposited into the
Fund not more than $15,000,000,000, to be derived as follows:
(1) 50 percent of the total amount collected in revenues
from tariffs imposed during a fiscal year pursuant to the
authority provided by section 301 of the Trade Act of 1974 (19
U.S.C. 2411) on articles originating from the People's Republic
of China.
(2) Such additional amounts as may be appropriated to the
Fund.
(c) Uses of Fund.--Subject to section 3, the Secretary of Commerce
may use amounts in the Fund to provide direct loans, equity
investments, or grants to covered manufacturers to encourage such
covered manufacturers--
(1) to expand, modernize, or otherwise improve operations
within the United States--
(A) that promote the economic or technological
security, industrial capacity, or national security of
the United States; and
(B) are in industries identified by the sectoral
supply chain assessments submitted to the President
pursuant to section 4 of Executive Order 14017 (86 Fed.
Reg. 11849; titled ``America's Supply Chains'') or
industries identified by sectoral supply chain
assessments submitted to the President pursuant to
section 5(c); or
(2) to expand use and production of, and to facilitate the
commercialization of, critical and emerging technologies.
(d) Limitation on Award Amounts.--
(1) Maximum award.--No single direct loan, equity
investment, or grant made to a covered manufacturer from the
Fund may exceed $500,000,000.
(2) Notification.--Not later than 15 days before making an
award from the Fund that exceeds $100,000,000, the Secretary
shall notify the appropriate committees of Congress of the
determination to make such an award.
(e) Loan Terms.--A loan from the Fund shall--
(1) have a term of not more than 25 years;
(2) have an interest rate determined by considering the
costs of carrying out this Act and the costs to the Department
of the Treasury for obligations of funds of comparable maturity
on the date on which the loan is made;
(3) be made only to a covered manufacturer that the
Secretary determines can reasonably repay such loan; and
(4) includes adequate provisions to protect the interest of
the United States.
(f) Binding Agreement Upon Award.--The Secretary shall enter into a
binding agreement with a covered manufacturer when making an award from
the Fund that shall include terms--
(1) requiring the covered manufacturer to furnish records
and other necessary information at the request of the Secretary
to review the compliance of the covered manufacturer to terms
of the agreement;
(2) detailing repayment terms, including terms that allow
for the recovery of assets in the event of repayment
delinquency or default; and
(3) requiring the revocation of unexpended funds and a
repayment of any award made by the Fund in the event the
Secretary determines the covered manufacturer has violated the
agreement or failed to furnish proof of compliance pursuant to
paragraph (1).
(g) Termination of Fund.--The authority of the Secretary of
Commerce to obligate amounts in the Fund shall terminate on the date
that is 10 years after the date of the enactment of this Act. The
unobligated balances of all amounts made available to the Fund as of
such date shall be permanently rescinded.
SEC. 3. MANUFACTURING AND CRITICAL AND EMERGING TECHNOLOGIES ASSISTANCE
PROGRAM.
(a) Eligibility for Assistance.--A covered manufacturer may only be
eligible to apply for assistance through the Fund established in
section 2 if the covered manufacturer certifies to the Secretary of
Commerce concurrently with an application for such assistance the
following:
(1) The covered manufacturer has no outstanding tax
liabilities, pending civil or criminal judicial and
administrative actions, or disputes under adjudication by the
National Labor Relations Board.
(2) None of the beneficial owners, if any, of the covered
manufacturer is a prohibited foreign entity.
(3) The covered manufacturer has a specific plan to follow
existing procurement policies with respect to the assistance
sought as implemented by the core jobs mandate in section
2(a)(1) of the Export-Import Bank Act of 1945 (12 U.S.C.
635(a)(1)).
(4) The covered manufacturer is not--
(A) organized under the laws of a foreign country
of concern or a nonmarket economy country or of any
jurisdiction within such a country; or
(B) otherwise in a partnership with a prohibited
foreign entity.
(b) Conditions on Assistance.--With respect to the period for which
a covered manufacturer is seeking assistance, the Secretary of Commerce
shall require the covered manufacturer to commit, for the duration of
the loan or equity investment or for a period of 10 years beginning on
the date of the first disbursement of a grant, to each of the following
as a condition for receiving such assistance:
(1) The covered manufacturer will not use any such
assistance--
(A) to pay dividends or repurchase shares of its
own company;
(B) to support or expand activity or operations
located in a foreign country of concern or a nonmarket
economy country; and
(C) to license technologies developed using the
assistance to entities outside the United States;
(2) The covered manufacturer will adhere to the prevailing
wage requirement described in section 4(a) and to the
apprentice requirement described in section 4(b).
(3) The covered manufacturer will spend not less than 1
percent of the total amount provided in such assistance for the
provision of employment and training activity, customized
training, or on-the-job training for the employees associated
with the covered manufacturer's use of funds or transfer an
equivalent amount to a local workforce development board. Such
training may include--
(A) occupational skills training;
(B) on-the-job training;
(C) programs that combine workplace training with
related instruction, which may include cooperative
education programs;
(D) skill upgrading and retraining;
(E) entrepreneurial training;
(F) transitional jobs;
(G) job readiness training provided in combination
with services described in any of subparagraph (A)
through (F);
(H) adult education and literacy activities,
including activities of English language acquisition
and integrated education and training programs,
provided concurrently or in combination with services
described in any of subparagraph (A) through (F); and
(I) customized training conducted with a commitment
by an employer or group of employers to employ an
individual upon successful completion of the training.
(4) The covered manufacturer will spend not less than 0.5
percent of the total award administered by the Fund for the
provision of supportive services for the employees associated
with the covered manufacturer's use of funds.
(c) Small Business Exception.--A covered manufacturer that has
fewer than 500 employees at the time of receiving assistance under this
Act shall be exempt from the condition described in subsection
(b)(1)(A).
(d) Prioritization and Allocation of Funds.--In providing
assistance under this Act, the Secretary of Commerce shall--
(1) prioritize awards to covered manufacturers--
(A) that can demonstrate expected reductions in
greenhouse gas intensity and other emissions intensity
through the operations for which the covered
manufacturer is seeking assistance;
(B) that can demonstrate expected improvements to
the efficiency of production;
(C) that are located in a metropolitan statistical
area or non-metropolitan statistical area which has
experienced at least a 25 percent reduction in
manufacturing employment between the years of 2000 and
2023;
(D) that the Secretary of Commerce has determined
experienced injury from trade, including based on--
(i) an injury that has been determined to
have occurred by the United States
International Trade Commission--
(I) in the course of an
investigation by the Commission into
dumping or subsidization under section
701 or 731 of the Tariff Act of 1930
(19 U.S.C. 1671 and 1673); or
(II) under section 202(b) of the
Trade Act of 1974 (19 U.S.C. 2252(b));
or
(ii) an affirmative finding from the United
States Trade Representative pursuant to
authorities described in title III of the Trade
Act of 1974 (19 U.S.C. 2411 et seq.);
(E) that plan to adopt neutrality regarding
unionization of the workforce of the funded project;
(F) that plan to develop or redevelop a brownfield
or former industrial site; or
(G) that plan to purchase and use goods and
services for the funded activities that are sourced
from the United States of America;
(2) set aside 10 percent of the total amount available in
the Fund for each fiscal year for covered manufacturers that
are small business concerns (as defined in section 3 of the
Small Business Act (15 U.S.C. 632)); and
(3) set aside 10 percent of the total amount available in
the Fund for each fiscal year for covered manufacturers that
create, maintain, protect, expand, or restore domestic
industrial base capabilities essential for the national defense
(as defined in 50 U.S.C. 4533).
(e) Definitions.--In this section:
(1) Beneficial owner.--The term ``beneficial owner'' has
the meaning given such term under section 5336 of title 31,
United States Code (commonly referred to as the ``Corporate
Transparency Act'').
(2) Covered manufacturer.--The term ``covered
manufacturer'' means a manufacturer for which the principal
place of business is located in the United States.
(3) Critical and emerging technology.--The term ``critical
and emerging technology'' means any technology that is in a
developmental stage or that may be developed during the
subsequent 10-year period, any technology included in the
Critical and Emerging Technologies List published by the White
House's National Science and Technology Council in February
2024, or any successor document to this list.
(4) Foreign country of concern.--The term ``foreign country
of concern'' has the meaning given such term in section 9901 of
the William M. (Mac) Thornberry National Defense Authorization
Act for Fiscal Year 2021 (15 U.S.C. 4651).
(5) Greenhouse gas intensity.--The term ``greenhouse gas
intensity'' means the ratio of greenhouse gas emissions to
economic output.
(6) Local workforce development board; transitional jobs.--
The terms ``local workforce development board'' and
``transitional jobs'' have the meanings given those terms under
the Workforce Innovation and Opportunities Act (29 U.S.C.
3122).
(7) Nonmarket country economy.--The term ``nonmarket
country economy'' has the meeting given such term in section
771(18) of the Tariff Act of 1930 (19 U.S.C. 1677(18)).
(8) Prohibited foreign entity.--The term ``prohibited
foreign entity'' has the meaning given such term in section
7701 of the Internal Revenue Code of 1986 (26 U.S.C.
7701(a)(51)(A)).
(9) Repurchase.--The term ``repurchase'' has the meaning
given that term under section 4501 of the Internal Revenue Code
of 1986 (26 U.S.C. 4501).
(10) Supportive services.--The term ``supportive services''
has the meaning given that term under section 3 of the
Workforce Innovation and Opportunities Act (29 U.S.C. 3102).
SEC. 4. PREVAILING WAGE AND APPRENTICESHIP REQUIREMENTS.
(a) Prevailing Wage Requirements.--
(1) In general.--The requirement described in this
subsection with respect to any qualified facility that is the
recipient of assistance provided to a covered manufacturer
under the Fund, is that such covered manufacturer shall ensure
that any laborers and mechanics employed by the covered
manufacturer (or any contractor or subcontractor of the covered
manufacturer) in the construction, alteration, or repair of
such facility, shall be paid wages at rates not less than the
prevailing rates for construction, alteration, or repair of a
similar character in the locality in which such facility is
located as most recently determined by the Secretary of Labor,
in accordance with subchapter IV of chapter 31 of title 40,
United States Code.
(2) Correction and penalty related to failure to satisfy
wage requirements.--
(A) In general.--In the case of any covered
manufacturer which fails to satisfy the requirement
under paragraph (1) with respect to a qualified
facility during any period for which the assistance
described in paragraph (1) was provided by such covered
manufacturer to such qualified facility, such covered
manufacturer shall be deemed to have satisfied such
requirement under such paragraph with respect to such
facility for such period if, with respect to any
laborer or mechanic who was paid wages at a rate below
the rate described in such paragraph for such period,
such covered manufacturer--
(i) makes payment to such laborer or
mechanic in an amount equal to the sum of an
amount equal to the difference between--
(I) the amount of wages paid to
such laborer or mechanic during such
period; and
(II) the amount of wages required
to be paid to such laborer or mechanic
pursuant to such paragraph during such
period; plus
(ii) makes payment to the Secretary of
Commerce of a penalty in an amount equal to the
product of--
(I) $5,000; multiplied by
(II) the total number of laborers
and mechanics who were paid wages at a
rate below the rate described in
paragraph (1) for such period.
(B) Intentional disregard.--If the Secretary of
Commerce determines that any failure described in
subparagraph (A) is due to intentional disregard of the
requirements of paragraph (1), such subparagraph shall
be applied--
(i) in clause (i)(I), by substituting
``three times the sum'' for ``the sum''; and
(ii) in clause (i)(II)(aa), by substituting
``$10,000'' for ``5,000''.
(C) Limitation on period for payment.--Pursuant to
rules issued by the Secretary of Commerce, in the case
of a final determination by the Secretary with respect
to any failure by the covered manufacturer to satisfy
the requirement of paragraph (1), paragraph (2)(A)
shall not apply unless the payments described in clause
(i) and (ii) of such paragraph (2)(A) are made by the
covered manufacturer on or before the date which is 180
days after the date of such determination.
(b) Apprenticeship Requirements.--The apprenticeship requirements
described in this subsection with respect to the construction of any
qualified facility are as follows:
(1) Labor hours.--
(A) Percentage of total labor hours.--Covered
manufacturers shall ensure that, with respect to the
construction of any qualified facility, not less than
the applicable percentage of the total labor hours of
the construction, alteration, or repair work (including
such work performed by any contractor or subcontractor)
with respect to such facility shall, subject to
subparagraph (B), be performed by qualified
apprentices.
(B) Applicable percentage.--For purposes of
subparagraph (A), the applicable percentage shall be--
(i) in the case of a qualified facility the
construction of which begins before January 1,
2027, 10 percent;
(ii) in the case of a qualified facility
the construction of which begins after December
31, 2026, and before January 1, 2028, 12.5
percent; and
(iii) in the case of a qualified facility
the construction of which begins after December
31, 2027, 15 percent.
(2) Apprentice-to-journeyworker ratio.--The requirement
under paragraph (1)(A) shall be subject to any applicable
requirements for apprentice-to-journeyworker ratios of the
Department of Labor or the applicable State apprenticeship
agency.
(3) Participation.--Each covered manufacturer, contractor,
or subcontractor who employs 4 or more individuals to perform
construction, alteration, or repair work with respect to the
construction of a qualified facility shall employ 1 or more
qualified apprentices to perform such work.
(4) Exception.--
(A) In general.--A covered manufacturer shall not
be treated as failing to satisfy the requirements of
this subsection if such covered manufacturer--
(i) satisfies the requirements described in
subparagraph (B); or
(ii) subject to subparagraph (C), in the
case of any failure by the covered manufacturer
to satisfy the requirement under paragraphs (1)
and (3) with respect to the construction,
alteration, or repair work on any qualified
facility to which subclause (I) does not apply,
makes payment to the Secretary of a penalty in
an amount equal to the product of--
(I) $50; multiplied by
(II) the total labor hours for
which the requirement described in such
subparagraph was not satisfied with
respect to the construction,
alteration, or repair work on such
qualified facility.
(B) Good-faith effort.--For purposes of
subparagraph (A), a covered manufacturer shall be
deemed to have satisfied the requirements under this
paragraph with respect to a qualified facility if such
covered manufacturer has requested qualified
apprentices from a registered apprenticeship program,
and--
(i) such request has been denied, provided
that such denial is not the result of a refusal
by the covered manufacturer (or any contractors
or subcontractors engaged in the performance of
construction, alteration, or repair work with
respect to such qualified facility) to comply
with the established standards and requirements
of the registered apprenticeship program; or
(ii) the registered apprenticeship program
fails to respond to such request within 5
business days after the date on which such
registered apprenticeship program received such
request.
(C) Intentional disregard.--If the Secretary of
Commerce determines that any failure described in
subparagraph (A)(ii) is due to intentional disregard of
the requirements under paragraphs (1) and (3),
subparagraph (A)(ii)(I) shall be applied by
substituting ``$500'' for ``$50''.
(c) Definitions.--In this section:
(1) Fund.--The term ``Fund'' means the Fund established
under section 2.
(2) Labor hours.--The term ``labor hours''--
(A) means the total number of hours devoted to the
performance of construction, alteration, or repair work
by any individual employed by the covered manufacturer
or by any contractor or subcontractor; and
(B) excludes any hours worked by--
(i) foremen;
(ii) superintendents;
(iii) owners; or
(iv) persons employed in a bona fide
executive, administrative, or professional
capacity (within the meaning of those terms in
part 541 of title 29, Code of Federal
Regulations).
(3) Qualified apprentice.--The term ``qualified
apprentice'' means an individual who is employed by the covered
manufacturer or by any contractor or subcontractor and who is
participating in a registered apprenticeship program.
(4) Qualified facility.--The term ``qualified facility''
means a facility that is the recipient of assistance provided
to a covered manufacturer under the Fund.
(5) Registered apprenticeship program.--The term
``registered apprenticeship program'' means an apprenticeship
registered under the Act of August 16, 1937 (commonly known as
the ``National Apprenticeship Act''; 50 Stat. 664, chapter 663;
29 U.S.C. 50 et seq.) that meets the standards of subpart A of
part 29 and part 30 of title 29, Code of Federal Regulations.
SEC. 5. REPORTS.
(a) To Congress.--
(1) In general.--The Secretary of Commerce shall submit to
Congress a report on the effects of the Fund established under
section 2(a)--
(A) not later than 2 years after the establishment
of such fund and annually thereafter until the
termination date in section 2(g); and
(B) not later than 9 years after the establishment
of such fund, if it is the determination of the
Secretary that such termination date should be
extended, including a recommendation on such extension.
(2) Contents.--The reports required under paragraph (1)
shall also include an analysis of the effects of the Fund on
the following:
(A) Rebuilding the capacity and security of
production in critical capabilities in the United
States.
(B) Derisking supply chains from nonmarket
economies.
(C) Reducing reliance of the United States supply
chain on nonmarket economies.
(D) Improving the stability and resilience of
sectoral supply chains identified in section
2(c)(1)(B).
(E) Local economies and the national economy.
(b) Public Reporting.--The Secretary of Commerce shall maintain a
single, searchable website, accessible by the public without fees or
other access costs, that includes for each award made by the Fund--
(1) the name, location, and the primary location of
activities performed under the award, including the city,
State, congressional district, and country of the covered
manufacturer receiving the award;
(2) the type and amount of the award;
(3) information on the award including transaction type,
the North American Industry Classification System code or
Catalog of Federal Domestic Assistance number (where
applicable), program source, and an award title descriptive of
the purpose of each funding action;
(4) information on the uses of awarded funds by the covered
manufacturer;
(5) a unique identifier of the entity receiving the award
and of the parent entity of the recipient, should the entity be
owned by another entity;
(6) the number of jobs created and retained by the covered
manufacturer directly associated with an award from the Fund;
and
(7) any other relevant information specified by the
Secretary.
(c) Assessments.--Not later than 2 years after the establishment of
the Fund, and biennially thereafter until the termination date of the
Fund under section 2(g), the Secretary of Commerce, the Secretary of
Energy, the Secretary of Defense, and the Secretary of Health and Human
Services shall update and submit to the President, through the
Secretary of Commerce, the sectoral supply chain assessments required
by section 4 of Executive Order 14017 (86 Fed. Reg. 11849; titled
``America's Supply Chains''). The Secretary of Commerce may adjust the
scope of these reports as determined necessary.
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