Section 1 Short title
This Act may be cited as the “Industrial Bank for American Manufacturing Act of 2026”.
Industrial Bank for American Manufacturing Act of 2026
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.
Sec. 2 Establishment of Industrial Bank for American Manufacturing
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.
Deposits— Each fiscal year, there shall be deposited into the Fund not more than $15,000,000,000, to be derived as follows:
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.
Such additional amounts as may be appropriated to the Fund.
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—
to expand, modernize, or otherwise improve operations within the United States—
that promote the economic or technological security, industrial capacity, or national security of the United States; and
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
to expand use and production of, and to facilitate the commercialization of, critical and emerging technologies.
Limitation on award amounts—
Maximum award— No single direct loan, equity investment, or grant made to a covered manufacturer from the Fund may exceed $500,000,000.
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.
Loan terms— A loan from the Fund shall—
have a term of not more than 25 years;
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;
be made only to a covered manufacturer that the Secretary determines can reasonably repay such loan; and
includes adequate provisions to protect the interest of the United States.
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—
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;
detailing repayment terms, including terms that allow for the recovery of assets in the event of repayment delinquency or default; and
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).
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
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:
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.
None of the beneficial owners, if any, of the covered manufacturer is a prohibited foreign entity.
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)).
The covered manufacturer is not—
organized under the laws of a foreign country of concern or a nonmarket economy country or of any jurisdiction within such a country; or
otherwise in a partnership with a prohibited foreign entity.
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:
The covered manufacturer will not use any such assistance—
to pay dividends or repurchase shares of its own company;
to support or expand activity or operations located in a foreign country of concern or a nonmarket economy country; and
to license technologies developed using the assistance to entities outside the United States;
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).
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—
occupational skills training;
on-the-job training;
programs that combine workplace training with related instruction, which may include cooperative education programs;
skill upgrading and retraining;
entrepreneurial training;
transitional jobs;
job readiness training provided in combination with services described in any of subparagraph (A) through (F);
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
customized training conducted with a commitment by an employer or group of employers to employ an individual upon successful completion of the training.
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.
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).
Prioritization and allocation of funds— In providing assistance under this Act, the Secretary of Commerce shall—
prioritize awards to covered manufacturers—
that can demonstrate expected reductions in greenhouse gas intensity and other emissions intensity through the operations for which the covered manufacturer is seeking assistance;
that can demonstrate expected improvements to the efficiency of production;
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;
that the Secretary of Commerce has determined experienced injury from trade, including based on—
an injury that has been determined to have occurred by the United States International Trade Commission—
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
under section 202(b) of the Trade Act of 1974 (19 U.S.C. 2252(b)); or
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.);
that plan to adopt neutrality regarding unionization of the workforce of the funded project;
that plan to develop or redevelop a brownfield or former industrial site; or
that plan to purchase and use goods and services for the funded activities that are sourced from the United States of America;
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
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).
Definitions— In this section:
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”).
Covered manufacturer— The term covered manufacturer means a manufacturer for which the principal place of business is located in the United States.
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.
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).
Greenhouse gas intensity— The term greenhouse gas intensity means the ratio of greenhouse gas emissions to economic output.
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).
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)).
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)).
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).
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
Prevailing wage requirements—
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.
Correction and penalty related to failure to satisfy wage requirements—
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—
makes payment to such laborer or mechanic in an amount equal to the sum of an amount equal to the difference between—
the amount of wages paid to such laborer or mechanic during such period; and
the amount of wages required to be paid to such laborer or mechanic pursuant to such paragraph during such period; plus
makes payment to the Secretary of Commerce of a penalty in an amount equal to the product of—
$5,000; multiplied by
the total number of laborers and mechanics who were paid wages at a rate below the rate described in paragraph (1) for such period.
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—
in clause (i)(I), by substituting “three times the sum” for “the sum”; and
in clause (i)(II)(aa), by substituting “$10,000” for “5,000”.
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.
Apprenticeship requirements— The apprenticeship requirements described in this subsection with respect to the construction of any qualified facility are as follows:
Labor hours—
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.
Applicable percentage— For purposes of subparagraph (A), the applicable percentage shall be—
in the case of a qualified facility the construction of which begins before January 1, 2027, 10 percent;
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
in the case of a qualified facility the construction of which begins after December 31, 2027, 15 percent.
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.
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.
Exception—
In general— A covered manufacturer shall not be treated as failing to satisfy the requirements of this subsection if such covered manufacturer—
satisfies the requirements described in subparagraph (B); or
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—
$50; multiplied by
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.
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—
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
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.
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”.
Definitions— In this section:
Fund— The term Fund means the Fund established under section 2.
Labor hours— The term labor hours—
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
excludes any hours worked by—
foremen;
superintendents;
owners; or
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).
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.
Qualified facility— The term qualified facility means a facility that is the recipient of assistance provided to a covered manufacturer under the Fund.
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
To Congress—
In general— The Secretary of Commerce shall submit to Congress a report on the effects of the Fund established under section 2(a)—
not later than 2 years after the establishment of such fund and annually thereafter until the termination date in section 2(g); and
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.
Contents— The reports required under paragraph (1) shall also include an analysis of the effects of the Fund on the following:
Rebuilding the capacity and security of production in critical capabilities in the United States.
Derisking supply chains from nonmarket economies.
Reducing reliance of the United States supply chain on nonmarket economies.
Improving the stability and resilience of sectoral supply chains identified in section 2(c)(1)(B).
Local economies and the national economy.
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—
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;
the type and amount of the award;
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;
information on the uses of awarded funds by the covered manufacturer;
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;
the number of jobs created and retained by the covered manufacturer directly associated with an award from the Fund; and
any other relevant information specified by the Secretary.
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.