[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 9954 Introduced in House (IH)]

<DOC>






119th CONGRESS
  2d Session
                                H. R. 9954

  To establish the Manufacturing Sovereign Wealth Fund, and for other 
                               purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 27, 2026

 Mr. Deluzio introduced the following bill; which was referred to the 
 Committee on Financial Services, and in addition to the Committee on 
   Ways and Means, for a period to be subsequently determined by the 
  Speaker, in each case for consideration of such provisions as fall 
           within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
  To establish the Manufacturing Sovereign Wealth Fund, 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 ``Build America Fund Act''.

SEC. 2. MANUFACTURING SOVEREIGN WEALTH FUND.

    (a) Establishment.--There is established the Manufacturing 
Sovereign Wealth Fund (in this Act referred to as the ``Fund'').
    (b) Objectives.--The objectives of the Fund are as follows:
            (1) Rebuild industrial capacity.--To rebuild industrial 
        capacity, including by revitalizing critical industries 
        hollowed out by offshoring or financialization (e.g., the areas 
        described in the initial list of key technology focus areas 
        under section 10387(c) of the CHIPS Act of 2022 (42 U.S.C. 
        19107(c))).
            (2) Promote economic sovereignty.--To promote economic 
        sovereignty, including by--
                    (A) reducing dependence on foreign supply chains 
                for essential goods and inputs; and
                    (B) ensuring domestic control over strategic 
                production capabilities.
            (3) Catalyze innovation and advanced manufacturing.--To 
        catalyze innovation and advanced manufacturing, including by--
                    (A) investing in research, automation, materials 
                science, and process innovation; and
                    (B) supporting commercialization of advanced 
                manufacturing technologies.
            (4) Create and retain high-quality jobs.--To create and 
        retain high-quality jobs (as such term is used in Executive 
        Order 14126 (89 Fed. Reg. 73559; published September 11, 
        2024)), including by--
                    (A) supporting projects that offer strong wages, 
                training, and labor standards; and
                    (B) partnering with workforce development programs, 
                technical education institutions, and labor 
                organizations.
            (5) Ensure long-term, sustainable returns.--To ensure long-
        term, sustainable returns, including by--
                    (A) operating on commercial principles that take 
                into account social and strategic outcomes; and
                    (B) reinvesting profits into industrial, 
                technological, and local community development.
            (6) Enhance regional development.--To enhance regional 
        development, including by--
                    (A) investing in areas adversely affected by 
                deindustrialization and economic decline; and
                    (B) strengthening local manufacturing ecosystems 
                and small suppliers.
    (c) Board of Governors.--
            (1) In general.--The head of the Fund shall be the Board of 
        Governors, which shall consist of 13 members appointed by the 
        President, by and with the advice and consent of the Senate, 
        from among individuals who are citizens of the United States.
            (2) Representation.--In appointing members under paragraph 
        (1), the President shall appoint--
                    (A) at least 2 members representing labor;
                    (B) at least 2 members representing workforce 
                development;
                    (C) at least 2 members representing industry and 
                technology;
                    (D) at least 2 members representing regional 
                development;
                    (E) at least 2 members representing academia or 
                science;
                    (F) at least 2 members representing finance and 
                risk management; and
                    (G) at least 1 member representing the Armed Forces 
                of the United States.
            (3) Chair.--The members of the Board of Governors shall 
        appoint one member as Chair of the Board of Governors.
            (4) Term.--
                    (A) In general.--The members of the Board of 
                Governors shall serve for a term of 6 years, except 
                that--
                            (i) a member may continue to serve after 
                        the expiration of the member's term until a 
                        successor has been confirmed, but not to exceed 
                        1 year; and
                            (ii) subject to clause (i), a member 
                        appointed to fill in the remainder of another 
                        member's term shall only serve for the 
                        remainder of such term.
                    (B) Staggered initial terms.--The initial members 
                of the Board of Governors shall be appointed to 
                staggered terms as follows:
                            (i) 2 members shall be appointed for terms 
                        of 2 years.
                            (ii) 2 members shall be appointed for terms 
                        of 3 years.
                            (iii) 3 members shall be appointed for 
                        terms of 4 years.
                            (iv) 3 members shall be appointed for terms 
                        of 5 years.
                            (v) 3 members shall be appointed for terms 
                        of 6 years.
            (5) Compensation.--The Chair of the Board of Governors 
        shall be compensated at Level I of the Executive Schedule (5 
        U.S.C. 5312) and all other members of the Board of Governors 
        shall be compensated at Level II of the Executive Schedule (5 
        U.S.C. 5313).
            (6) Duties.--The Board of Governors shall--
                    (A) oversee the day-to-day management of the Fund;
                    (B) approve the Fund's strategic investment plan 
                every year;
                    (C) ensure that the investments of the Fund align 
                with the manufacturing, labor, and economic resilience 
                goals of the United States, as enumerated in the 
                Industrial Sovereignty Strategy described in section 
                7(b)(4);
                    (D) monitor performance metrics for the Fund;
                    (E) review environmental, labor, and supply chain 
                due diligence on all investments made by the Fund;
                    (F) review and approve annual financial statements, 
                audits, and risk assessments;
                    (G) ensure community and worker representation in 
                the Fund's decision making;
                    (H) coordinate with the Industrial Sovereignty 
                Council on long-term strategy; and
                    (I) review labor standards for supply chains.
            (7) Offices.--The Chair of the Board of Governors may 
        establish such offices within the Fund as the Chair determines 
        necessary or appropriate to address specific issues or sectors.
            (8) Rulemaking authority.--The Board of Governors may issue 
        such rules as may be necessary or appropriate to carry out this 
        Act.
            (9) Information from investment recipients.--The Board of 
        Governors may request any information from an entity requesting 
        or receiving investments from the Fund that the Board of 
        Governors determines necessary, and such entity shall provide 
        such information to the Board of Governors.
    (d) Inspector General.--Section 415(a)(1)(A) title 5, United States 
Code, is amended by inserting ``the Manufacturing Sovereign Wealth 
Fund,'' before ``the National Archives and Records Administration''.

SEC. 3. INVESTMENTS.

    (a) In General.--The Fund shall, in furtherance of the objectives 
described in section 2(b), make investments, either individually or in 
partnership with third parties, in the form of--
            (1) equity investments; and
            (2) loans and loan guarantees.
    (b) Investment Areas.--
            (1) In general.--The Fund may only make investments in the 
        following sectors:
                    (A) Strategic manufacturing.--Strategic 
                manufacturing sectors, including areas described in the 
                initial list of key technology focus areas under 
                section 10387(c) of the CHIPS Act of 2022 (42 U.S.C. 
                19107(c)).
                    (B) Technology and innovation.--Technology and 
                innovation sectors, including additive manufacturing, 
                robotics, and industrial data systems.
                    (C) Supply chain security.--Sectors related to 
                supply chain security, including domestic sourcing of 
                critical inputs and reshoring of key supply lines.
                    (D) Workforce and sme development.--Sectors related 
                to workforce and small- and medium-enterprise 
                development, including small- and medium-size 
                manufacturers and registered apprenticeship and 
                vocational programs.
            (2) Updating by the board.--The Board of Governors shall 
        periodically review the sectors described in paragraph (1) and 
        may add or subtract sectors as the Board of Governors 
        determines appropriate.
    (c) Applications.--A company may apply to the Fund for an 
investment in such form and manner as the Fund may determine 
appropriate, but such application shall include the type of the 
requested investment and the amount of the requested investment.
    (d) Golden Share Requirement for Equity Investments.--
            (1) In general.--The Fund may only make an equity 
        investment in a company if the investment gives the Fund veto 
        authority over the following while the Fund holds the 
        investment:
                    (A) Location and capacity.--Any action of the 
                company to--
                            (i) engage in offshoring (as defined in 
                        section 5(g)(3));
                            (ii) shut down strategic facilities;
                            (iii) otherwise transfer ownership of any 
                        sensitive facilities; or
                            (iv) reduce capacity below a minimum level 
                        determined by the Fund.
                    (B) Ownership and control.--Any action of the 
                company to--
                            (i) sell the company to foreign persons (as 
                        defined in section 800.224 of title 31, Code of 
                        Federal Regulations);
                            (ii) acquire another company in a hostile 
                        takeover; or
                            (iii) enter into a merger that would result 
                        in the loss of domestic control over the 
                        operations of the company.
                    (C) Intellectual property.--Any action of the 
                company to--
                            (i) license any intellectual property of 
                        the company to foreign companies or other 
                        persons;
                            (ii) sell any patent or process trade 
                        secrets;
                            (iii) otherwise transfer ownership of any 
                        intellectual property; or
                            (iv) move research and development to a 
                        foreign country.
                    (D) Supply chain integrity.--Any action of the 
                company to--
                            (i) end production of critical components; 
                        or
                            (ii) change to foreign persons (as defined 
                        in section 800.224 of title 31, Code of Federal 
                        Regulations), for sensitive inputs.
                    (E) Lockouts and mass layoffs.--Any lockout or mass 
                layoff (as such term is defined in section 2(a) of the 
                Worker Adjustment and Retraining Notification Act (29 
                U.S.C. 2101(a))).
            (2) Treatment in bankruptcy.--Notwithstanding any other 
        provision of law, if the Fund makes an equity investment 
        described in paragraph (1), the Fund's authorities described in 
        paragraph (1) shall continue during any bankruptcy proceeding 
        with respect to such a company.
    (e) Requirements for All Investments.--
            (1) In general.--The Fund may only make an investment in a 
        company if the following requirements are met:
                    (A) Limitation on moving operations overseas.--The 
                company agrees not to move any operations of the 
                company from the United States to a foreign country 
                during the 50-year period beginning on the date the 
                investment is made.
                    (B) Limitation on expanding operations overseas.--
                The company agrees not to expand operations of the 
                company in a foreign country during the 50-year period 
                beginning on the date the investment is made.
                    (C) Domestic investment requirement.--The company 
                agrees that proceeds from the investment will only be 
                used for projects in the United States.
                    (D) Company located in the united states.--The 
                company is--
                            (i) is headquartered in the United States 
                        and the management and board of directors of 
                        the company are based in the United States; and
                            (ii) is not--
                                    (I) owned, directed, controlled, 
                                financed, or influenced, directly or 
                                indirectly, by an entity of concern or 
                                a foreign entity of concern (as such 
                                terms are defined, respectively, for 
                                purposes of subparagraph (F)); or
                                    (II) owned or controlled by a 
                                subsidiary or other affiliate of such 
                                an entity of concern or foreign entity 
                                of concern.
                    (E) Application requirements.--The company submits 
                a detailed application to the Fund that demonstrates 
                the following:
                            (i) Economic and national security 
                        alignment.--The investment would strengthen 
                        domestic supply chains and reduce foreign 
                        reliance.
                            (ii) Commercial viability and financial 
                        strength.--Each project to be funded with the 
                        proceeds of the investment would succeed long-
                        term and with the investment proceeds not 
                        serving as the sole financing for the project.
                            (iii) Technical feasibility and 
                        readiness.--For each project to be funded with 
                        the proceeds of the investment, realistic 
                        plans, permits, construction timelines, and 
                        milestones.
                            (iv) Workforce development commitments.--
                        Plans for training and hiring, and the extent 
                        to which such training and hiring would be done 
                        in partnership with community colleges, 
                        universities, or workforce development 
                        entities, including joint labor-management 
                        organizations.
                    (F) National security restrictions.--The company 
                agrees not to engage in joint research or sensitive 
                technology licensing with--
                            (i) an entity of concern (as defined in 
                        section 10114(a) of the CHIPS Act of 2022 (42 
                        U.S.C. 18912(a))); or
                            (ii) a foreign entity of concern (as 
                        defined in section 9901 of title XCIX of 
                        division H of the William M. (Mac) Thornberry 
                        National Defense Authorization Act for Fiscal 
                        Year 2021 (15 U.S.C. 4651)).
                    (G) Financial and performance conditions.--The 
                company agrees not to use proceeds from the investment 
                to make stock buybacks or pay dividends.
                    (H) Labor and compliance.--The company agrees--
                            (i) that all laborers and mechanics 
                        employed by contractors or subcontractors in 
                        the performance of construction, alteration, or 
                        repair work carried out, in whole or in part, 
                        with assistance made available under this Act 
                        shall be paid wages at rates not less than 
                        those prevailing on projects of a character 
                        similar in the locality, as determined by the 
                        Secretary of Labor in accordance with 
                        subchapter IV of chapter 31 of title 40, United 
                        States Code, provided that the Secretary of 
                        Labor shall have the authority and functions 
                        set forth in Reorganization Plan No. 14 of 1950 
                        (64 Stat. 1267; 5 U.S.C. App.) and section 3145 
                        of title 40, United States Code; and
                            (ii) to remain neutral with respect to any 
                        lawful effort by employees at a project funded 
                        in whole or in part with assistance made 
                        available under this Act to organize or bargain 
                        collectively, including refraining from--
                                    (I) mandatory anti-union meetings;
                                    (II) retaliation or discrimination 
                                based on protected organizing activity;
                                    (III) expenditure of company 
                                resources to oppose union 
                                representation; and
                                    (IV) interference with employee 
                                communications regarding organizing.
            (2) Violations.--With respect to a company that receives an 
        investment from the Fund and violates the requirements of this 
        subsection--
                    (A) the Fund shall suspend, divest from, or 
                clawback such investment; and
                    (B) the company is ineligible for future 
                investments from the Fund.
    (f) Authority for Profit Sharing.--The Fund may, as part of an 
investment in a company made under this Act, enter into an agreement 
with the company to share in the future profits of projects funded with 
the proceeds of the investment.
    (g) Board Approval Required for Large Investments.--The Fund may 
not make an investment in an amount of more than $250,000,000 without 
the prior approval of the Board of Governors.
    (h) Termination of Equity Investments.--With respect to each equity 
investment made by the Fund in a company, the Fund shall sell such 
investment at a time determined by the Chair as being in the best 
interest of the Fund's revenue earning.

SEC. 4. OVERSIGHT AND ACCOUNTABILITY.

    (a) Report to Congress.--The Board of Governors shall issue an 
annual report to Congress detailing the financial and strategic 
performance of the Fund, including--
            (1) the performance of the Fund's investment portfolio;
            (2) strategic impact outcomes; and
            (3) governance and ethics disclosures.
    (b) Inspector General Audit.--The Inspector General of the Fund 
shall carry out an annual audit of the Fund and provide a report on 
such audit to the Board of Governors and the Congress.
    (c) GAO Audit.--The Comptroller General of the United States shall 
carry out an annual audit of the Fund and provide a report on such 
audit to the Board of Governors and the Congress.
    (d) Public Transparency Portal.--The Board of Governors shall 
maintain a public transparency portal listing all investments of the 
Fund and the outcomes of those investments, but may exclude any 
investments due to national security concerns.
    (e) Ethics.--The Board of Governors shall adopt a code of ethics 
and conflict-of-interest disclosure policies for the directors and 
employees of the Fund, which shall include prohibiting revolving-door 
influence, including--
            (1) prohibiting governors and employees of the Fund (and 
        their spouses and dependents) from holding any ownership of a 
        company being invested in by the Fund;
            (2) prohibiting governors and employees of the Fund from 
        receiving deferred compensation tied to past industry roles;
            (3) requiring governors of the Fund to recuse themselves 
        from any matter involving former employers or other entities 
        where impartiality could reasonably be questioned; and
            (4) during the 5-year period beginning on the date an 
        individual ceases to be a governor of the Fund, prohibiting the 
        individual from--
                    (A) accepting employment, board roles, or 
                compensation from any company that was invested in by 
                the Fund and with which the individual interacted while 
                a governor of the Fund;
                    (B) providing consulting, advisory, or strategic 
                services to any such company; and
                    (C) engaging in lobbying or influence activity 
                related to the Fund or its portfolio.
    (f) Whistleblower Protections.--The Board of Governors shall 
develop and adopt a whistleblower protection mechanism.

SEC. 5. FUNDING.

    (a) Initial Funding.--
            (1) In general.--There is appropriated to the Fund, out of 
        any funds in the Treasury not otherwise appropriated, to remain 
        available until expended--
                    (A) on the date of enactment of this Act, 
                $100,000,000,000;
                    (B) for the first fiscal year beginning after the 
                date of enactment of this Act, $65,000,000,000;
                    (C) for the second fiscal year beginning after the 
                date of enactment of this Act, $40,000,000,000;
                    (D) for the third fiscal year beginning after the 
                date of enactment of this Act, $35,000,000,000;
                    (E) for the fourth fiscal year beginning after the 
                date of enactment of this Act, $20,000,000,000;
                    (F) for the fifth fiscal year beginning after the 
                date of enactment of this Act, $15,000,000,000;
                    (G) for the sixth fiscal year beginning after the 
                date of enactment of this Act, $12,000,000,000;
                    (H) for the seventh fiscal year beginning after the 
                date of enactment of this Act, $10,000,000,000;
                    (I) for the eighth fiscal year beginning after the 
                date of enactment of this Act, $8,000,000,000; and
                    (J) for the ninth fiscal year beginning after the 
                date of enactment of this Act, $5,000,000,000.
            (2) Decrease in appropriations over time.--
                    (A) Certification.--At the end of each 2-fiscal 
                year period beginning with the first fiscal year 
                beginning after the date of enactment of this Act, the 
                Chair of the Board of Governors shall certify to the 
                Congress whether or not the Fund is earning revenues 
                that equal or exceed the amount of appropriations 
                received by the Fund during the previous fiscal year 
                and whether or not such revenues can sustain the 
                operations of the Fund.
                    (B) Decrease.--Notwithstanding paragraph (1), each 
                time the Chair of the Board of Governors certifies 
                under subparagraph (A) that the Fund is earning 
                revenues that equal or exceed the amount of 
                appropriations received by the Fund during the previous 
                fiscal year and that such revenues can sustain the 
                operations of the Fund, the amount specified under 
                paragraph (1) applicable to each following fiscal year 
                shall be reduced by 20 percent.
    (b) Use of Investment Proceeds.--Except as provided in section 6, 
all proceeds from Fund investments, including interest, dividends, and 
proceeds from the sale of investments, shall be retained by the Fund 
and used, without further appropriation, to carry out this Act.
    (c) Funding From Automobile Tariffs and Antidumping and 
Countervailing Duties.--Beginning with the first fiscal year beginning 
after the date of enactment of this Act--
            (1) all duties collected pursuant to an investigation under 
        section 232 of the Trade Expansion Act of 1964 (19 U.S.C. 1862) 
        or section 301 of the Trade Act of 1974 (19 U.S.C. 2411) with 
        respect to automobiles shall be transferred to the Fund and 
        made available without further appropriation to carry out this 
        Act; and
            (2) all duties collected pursuant to an antidumping order 
        or countervailing duty order under title VII of the Tariff Act 
        of 1930 (19 U.S.C. 1671 et seq.) shall be transferred to the 
        Fund and made available without further appropriation to carry 
        out this Act.
    (d) Mergers and Acquisitions Fee.--
            (1) In general.--With respect to any covered transaction 
        with a transaction value of over $1,000,000,000, the person 
        making the acquisition shall pay a fee to the Fund in an amount 
        equal to 1 percent of the transaction value and such amount 
        shall be made available without further appropriation, to carry 
        out this Act. In the event that a covered transaction does not 
        have a single party making an acquisition, the Fund shall 
        determine which parties to the transaction are subject to this 
        paragraph and, if more than one, how the fee required under 
        this paragraph is divided among the parties. The Board of 
        Governors of the Fund shall assess the impact of covered 
        transactions on workers in the applicable industry, and ensure 
        covered transactions advance the Fund's objective to create and 
        retain high-quality jobs.
            (2) Definitions.--In this subsection:
                    (A) Covered transaction.--
                            (i) In general.--The term ``covered 
                        transaction''--
                                    (I) means any acquisition, directly 
                                or indirectly, by any person of--
                                            (aa) voting securities of 
                                        an issuer;
                                            (bb) non-corporate 
                                        interests in any unincorporated 
                                        entity, including partnerships, 
                                        limited liability companies, or 
                                        similar entities; and
                                            (cc) assets of any person; 
                                        and
                                    (II) includes--
                                            (aa) any merger, 
                                        consolidation, tender offer, or 
                                        similar business combination;
                                            (bb) any acquisition of a 
                                        controlling or non-controlling 
                                        interest;
                                            (cc) the formation of a 
                                        joint venture or other 
                                        combination of assets or 
                                        businesses; and
                                            (dd) any series of 
                                        transactions that are part of a 
                                        common plan or arrangement.
                            (ii) Aggregation and anti-avoidance.--In 
                        this subparagraph, transactions shall be 
                        aggregated and treated as a single covered 
                        transaction if the transactions--
                                    (I) are between the same or related 
                                persons; and
                                    (II) occur within a 24-month 
                                period, or as part of a common plan.
                            (iii) Common plan doctrine.--In this 
                        subparagraph, transactions shall be treated as 
                        part of a common plan where they are--
                                    (I) commercially interdependent;
                                    (II) negotiated in connection with 
                                one another; or
                                    (III) structured to avoid the 
                                application of this Act.
                    (B) Transaction value.--
                            (i) In general.--The term ``transaction 
                        value'' means the total value of all 
                        consideration paid or payable, directly or 
                        indirectly, in connection with a covered 
                        transaction, including--
                                    (I) cash and cash equivalents;
                                    (II) the fair market value of 
                                voting securities, non-corporate 
                                interests, or other ownership interests 
                                transferred;
                                    (III) the fair market value of 
                                assets transferred;
                                    (IV) liabilities assumed, including 
                                indebtedness; and
                                    (V) contingent, deferred, or 
                                earnout payments.
                            (ii) Determination.--A transaction value 
                        shall be determined based on--
                                    (I) the fair market value of the 
                                consideration as of the date of 
                                closing; or
                                    (II) if greater, the total 
                                consideration agreed to by the parties.
                            (iii) Special rules.--For purposes of 
                        determining a transaction value of a covered 
                        transaction, the Board of Governors shall issue 
                        rules for--
                                    (I) valuing contingent or deferred 
                                consideration;
                                    (II) valuing partial acquisitions; 
                                and
                                    (III) determining value in asset 
                                transactions.
    (e) Stock Trading Fee on High-Volume Traders.--The Securities and 
Exchange Commission shall--
            (1) issue rules to require each person who sells an equity 
        security, if the person has already sold more than $1,000,000 
        worth of equity securities in the same calendar year, to pay a 
        fee to the Commission in an amount equal to 0.1 percent of the 
        value of the sale; and
            (2) transfer such amounts to the Fund to be used, without 
        further appropriation, to carry out this Act.
    (f) Stock Buyback Fee.--The Securities and Exchange Commission 
shall--
            (1) issue rules to require each issuer that purchases an 
        equity security issued by such issuer to pay a fee of $100 to 
        the Commission for each such purchase; and
            (2) transfer such amounts to the Fund to be used, without 
        further appropriation, to carry out this Act.
    (g) Production Offshoring Fee.--
            (1) In general.--Any company that carries out manufacturing 
        in the sectors described in section 3(b)(1), as such sectors 
        may have been modified pursuant to section 3(b)(2), with annual 
        revenue of more than $250,000,000 shall pay a fee to the Fund 
        any time the company carries out offshoring.
            (2) Fee calculation.--
                    (A) In general.--The Board of Governors shall 
                determine the amount of a fee under paragraph (1) by 
                calculating the sum of--
                            (i) the labor cost differential between 
                        United States and offshore production 
                        multiplied by the number of units that have 
                        been offshored; and
                            (ii) the sum of past Federal tax credits, 
                        subsidies, and grants provided to the company 
                        prior to offshoring operations.
                    (B) Tiered rate structure.--The Board of Governors 
                shall determine a tiered rate structure for purposes of 
                carrying out this subsection, using determinants such 
                as non-market economy status, foreign entity of concern 
                status, labor and child-labor abuses, emission rates, 
                and others.
            (3) Offshoring defined.--The term ``offshoring'' means--
                    (A) the closure or downsizing of a domestic 
                production facility where there is reason to believe 
                such closure or downsizing may correlate to increasing 
                reliance on imported goods instead;
                    (B) the shift of production capacity abroad by a 
                company that continues selling into the United States; 
                and
                    (C) contracting with foreign manufacturers to 
                produce goods when the firm previously produced such 
                goods domestically.
    (h) Funding From Corporate Taxes.--
            (1) In general.--Section 11(b) of the Internal Revenue Code 
        of 1986 is amended by striking ``21 percent'' and inserting 
        ``22 percent''.
            (2) Use of funds.--All tax imposed by reason of the 
        amendment made by paragraph (1) shall be transferred to the 
        Fund to be used, without further appropriation, to carry out 
        this Act.
            (3) Effective date.--The amendment made by this subsection 
        shall apply to taxable years beginning after December 31, 2026.
    (i) Coordination With Other Agencies.--The Securities and Exchange 
Commission, the Secretary of the Treasury, and such other Federal 
agencies as the Board of Governors determines appropriate, shall 
provide assistance to the Fund in carrying out this subsection.
    (j) Securities Definitions.--In this section, the terms ``issuer'' 
and ``security'' have the meaning given those terms, respectively, in 
section 3 of the Securities Exchange Act of 1934.

SECTION 6. BUILD AMERICA DIVIDEND.

    (a) In General.--Subpart C of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by inserting after 
section 36B the following new section:

``SEC. 36C. BUILD AMERICA DIVIDEND.

    ``(a) Allowance of Credit.--In the case of an eligible individual, 
there shall be allowed as a credit against the tax imposed by this 
subtitle an amount equal to the applicable amount.
    ``(b) Eligible Individual.--For purposes of this section, the term 
`eligible individual' means an individual who is not--
            ``(1) a nonresident alien individual,
            ``(2) an individual with respect to whom a deduction under 
        section 151 is allowable to another taxpayer for a taxable year 
        beginning in the calendar year in which the individual's 
        taxable year begins, or
            ``(3) an estate or trust.
    ``(c) Applicable Amount.--The Board of Governors established under 
section 2(c) of the `Build America Fund Act' shall determine the 
applicable amount for purposes of subsection (a), which shall--
            ``(1) taken in aggregate with all credits allowed under 
        subsection (a) during an fiscal year, equal the amount which is 
        25 percent of the average annual proceeds of the Manufacturing 
        Sovereign Wealth Fund established in section 2(a) of the Build 
        America fund Act in the 5 preceding fiscal years, and
            ``(2) be determined subject to an income-based phaseout 
        structure which decreases the amount of the credit for higher-
        income individuals.
    ``(d) Timing of Payment.--In the case of any overpayment of tax 
attributable to a credit allowed under subsection (a), the Secretary 
shall refund such overpayment to the taxpayer on the later of--
            ``(1) the first Friday which occurs in October in the year 
        in which the return of tax is filed, or
            ``(2) the date on which the Secretary would issue such 
        refund determined without regard to this subsection.
    ``(e) Identification Number Requirement.--No credit shall be 
allowed under subsection (a) to any individual if such individual does 
not include a valid identification number (as defined in section 
24(h)(7)) of such taxpayer (or, in the case of a joint return, the 
valid identification number (as so defined) of at least 1 spouse) on 
the return of tax for the taxable year.''.
    (b) Conforming Amendments.--
            (1) Section 6211(b)(4)(A) of the Internal Revenue Code of 
        1986 is amended by inserting ``, 36C'' after ``36B''.
            (2) Section 1324(b)(2) of title 31, United States Code, is 
        amended by inserting ``, 36C'' after ``, 36B''.
            (3) The table of sections for subpart C of part IV of 
        subchapter A of chapter 1 of the Internal Revenue Code of 1986 
        is amended by inserting after the item relating to section 36B 
        the following new item:

``Sec. 36C. Build America dividend.''.
    (c) Effective Date.--The amendments made by this section shall 
apply to taxable years beginning after September 30, 2032.

SEC. 7. INDUSTRIAL SOVEREIGNTY COUNCIL.

    (a) Establishment.--There is established within the executive 
office of the President the Industrial Sovereignty Council (hereinafter 
in this Act referred to as the ``Council''), which shall be composed 
of--
            (1) the Secretary of Commerce and the Secretary of the 
        Treasury, who shall serve as co-Chairs of the Council;
            (2) the Director of the National Economic Council, who 
        shall serve as vice-Chair of the Council;
            (3) a representative from the Departments of Defense, 
        Energy, Labor, and State; and
            (4) the Chair of the Board of Governors of the Fund.
    (b) Duties.--The Council shall--
            (1) integrate the manufacturing investment decisions of the 
        Fund with broader U.S. economic, national security, energy, and 
        labor strategies;
            (2) advise on national priorities for the industrial policy 
        of the Fund;
            (3) review investments of the Fund for alignment with--
                    (A) supply chain security;
                    (B) climate and energy strategy; and
                    (C) workforce and regional equity goals;
            (4) develop a 5-year policy roadmap, to be known as the 
        ``Industrial Sovereignty Strategy'', that identifies--
                    (A) critical and emerging industries (e.g., 
                semiconductors, batteries, defense supply chains, 
                precision tools, robotics);
                    (B) workforce and training needs;
                    (C) regional manufacturing hubs for targeted 
                growth; and
                    (D) domestic content, sustainability, and energy 
                standards;
            (5) ensure that the Fund's portfolio aligns with the 
        Industrial Sovereignty Strategy;
            (6) review all major Fund investment plans for strategic 
        consistency (but shall not review the approval of individual 
        investments);
            (7) coordinate between the Departments of Commerce, 
        Defense, Energy, Labor, and the Treasury and the Office of the 
        United States Trade Representative on overlapping industrial 
        policies;
            (8) prevent duplicate or contradictory industrial policy 
        programs across agencies;
            (9) evaluate investments made by the Fund and partnerships 
        entered into by the Fund for national security implications, 
        including supply chain vulnerability, foreign dependency, and 
        dual-use technologies;
            (10) coordinate with the National Security Council and the 
        Committee on Foreign Investment in the United States to ensure 
        industrial investments of the United States enhance sovereignty 
        and not foreign leverage;
            (11) advise the Board of Governors of the Fund on strategic 
        risks, including geopolitical concentration (e.g., China-
        dependent sectors);
            (12) recommend new industrial standards, procurement rules, 
        and trade policies to complement the Fund's investments;
            (13) ensure consistent environmental, labor, and wage 
        standards across Federal programs;
            (14) advise Congress on legislative needs related to 
        domestic manufacturing, technology transfer, or export 
        controls;
            (15) publish an annual report, to be known as the 
        ``Industrial Sovereignty Report'', summarizing--
                    (A) sectoral investment patterns;
                    (B) supply chain dependencies;
                    (C) regional manufacturing health; and
                    (D) policy recommendations for the next fiscal 
                cycle; and
            (16) brief Congress and the President on industrial 
        progress, risks, and opportunities.

SEC. 8. TERMINATION DATE OF THE FUND'S FUNCTIONS; EXCEPTIONS; 
              LIQUIDATION.

    (a) In General.--The Fund shall continue to exercise its functions 
in connection with and in furtherance of its object and purposes until 
the close of business on the date that is 10 years after the date of 
enactment of this Act, but the provisions of this section shall not be 
construed as preventing the Fund from acquiring obligations prior to 
such date which mature subsequent to such date or from assuming prior 
to such date liability as guarantor, endorser, or acceptor of 
obligations which mature subsequent to such date, or from continuing as 
a corporate agency of the United States and exercising any of its 
functions subsequent to such date for purposes of orderly liquidation, 
including the administration of its assets and the collection of any 
obligations held by the Fund.
    (b) Funding.--
            (1) In general.--After the date described in subsection 
        (a)--
                    (A) the Board of Governors of the Fund shall 
                transfer any funds not needed to carry out the 
                functions described in subsection (a) to the Secretary 
                of Commerce; and
                    (B) the Secretary of Commerce shall use all such 
                funds for programs carried out by the Department of 
                Commerce to assist American manufacturing, including 
                manufacturing grant programs.
            (2) Other requirements.--All laborers and mechanics 
        employed by contractors or subcontractors in the performance of 
        construction, alteration, or repair work carried out, in whole 
        or in part, with assistance made available under paragraph 
        (1)(B) shall be paid wages at rates not less than those 
        prevailing on projects of a character similar in the locality 
        as determined by the Secretary of Labor in accordance with 
        subchapter IV of chapter 31 of title 40, United States Code. 
        With respect to such labor standards, the Secretary of Labor 
        shall have the authority and functions set forth in 
        Reorganization Plan No. 14 of 1950 (64 Stat. 1267; 5 U.S.C. 
        App.) and section 3145 of title 40, United States Code.
    (c) Sense of Congress on Reauthorization.--It is the sense of 
Congress that the Fund should be reauthorized in the future.
                                 <all>