Industrial Bank for American Manufacturing Act of 2026
Sponsored By: Representative Khanna, Ro [D-CA-17]
Introduced
Summary
Would create an Industrial Bank for American Manufacturing to provide loans, equity, and grants that aim to rebuild U.S. industrial capacity and commercialize critical technologies. It would be funded mainly by up to $15.0 billion a year from tariffs on certain imports from China and could also receive additional appropriations.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 2 benefits, 0 costs, 3 mixed.
Priority for green and local projects
This bill would require the Secretary to give priority to Fund awards for projects that lower greenhouse gas or other emissions intensity and improve production efficiency. Priority would also go to projects located in areas that lost at least 25% of manufacturing jobs from 2000–2023, projects with trade‑injury findings, projects that plan neutrality on unionization, brownfield redevelopment, and projects that plan to buy U.S. goods and services.
New manufacturing bank and funding
This bill would create an Industrial Bank for American Manufacturing inside Treasury to make loans, equity investments, and grants to U.S. manufacturers. Each year up to $15 billion could be deposited into the Fund, mainly from up to 50% of section 301 tariffs on goods from the People’s Republic of China, plus any extra appropriations. Individual awards would be capped at $500 million and the Secretary must notify Congress 15 days before any award over $100 million. The bill would let loans run up to 25 years with interest set by the Secretary based on Treasury costs, and it would end the Secretary's authority to obligate Fund amounts 10 years after enactment (unused balances would be rescinded).
Transparency and supply-chain reporting rules
This bill would require a free, searchable public website listing each Fund award, including recipient, location, award type and amount, uses of funds, and jobs created or retained. The Commerce Secretary would also report to Congress on the Fund's effects not later than two years after establishment and then annually. Commerce, Energy, Defense, and HHS would update sectoral supply chain assessments within two years and then every two years until the Fund ends.
Worker pay, apprenticeship, and training
This bill would require Fund recipients to follow Davis‑Bacon prevailing wage rules for covered construction work and repay any wage shortfalls. Employers who underpay must pay the shortfall plus $5,000 per affected worker; if the Secretary finds intentional disregard, restitution is tripled and the penalty is $10,000 per worker. Apprentices must perform a set share of labor hours: 10% for projects starting before Jan 1, 2027; 12.5% for projects starting in 2027; and 15% for projects starting in 2028 or later, with penalties of $50 per hour shortfall (or $500 per hour if intentional). Recipients must also spend at least 1% of each award on employment and training (or transfer that amount to a local workforce board) and at least 0.5% on supportive services.
Who can get Fund money
This bill would require applicants to certify they have no outstanding tax liabilities, no pending civil or criminal actions, and no NLRB disputes. Applicants and recipients must also certify that no beneficial owner is a prohibited foreign entity, they are not organized in a foreign country of concern or a nonmarket economy, and they will follow procurement policies tied to the Export-Import Bank core jobs mandate. Award agreements would be binding and require recipients to give records on request, accept compliance reviews, and include repayment and asset-recovery terms; the Secretary could revoke unexpended funds for violations. Covered manufacturers with fewer than 500 employees would be exempt from the rule that bars using assistance to pay dividends or repurchase shares.
Sponsors & CoSponsors
Sponsor
Khanna, Ro [D-CA-17]
CA • D
Cosponsors
Rep. Dingell, Debbie [D-MI-6]
MI • D
Sponsored 7/23/2026
Rep. Suozzi, Thomas R. [D-NY-3]
NY • D
Sponsored 7/23/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov