Khanna, Dingell, Suozzi Introduce Industrial Bank for American Manufacturing Act

WASHINGTON – Today, Representative Ro Khanna (CA-17), Ranking Member of the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP), alongside Representative Debbie Dingell (MI-06) and Select Committee Member Representative Tom Suozzi (NY-03), introduced the Industrial Bank for American Manufacturing Act. The bill would redirect up to 50 percent of Section 301 tariff revenue collected on Chinese imports to finance a new American industrial bank that would rebuild American factories, create good-paying jobs, and end our dependence on the CCP for critical goods. This bill comes after Ranking Member Khanna’s “Heartland Tour,” where he unveiled a new economic patriotism agenda during visits to American manufacturing facilities, farms, and ports across Pennsylvania, Ohio, and Michigan. 

“For decades, China has pursued an economic strategy designed to hollow out American manufacturing. I’ve heard firsthand from workers in America’s heartland about how China’s unfair practices hurt American industry and disrupt people’s lives,” said Ranking Member Khanna. “That’s why we need an industrial investment bank to revitalize American manufacturing, compete with China, and we can do it funded by tariff revenue.” 

"In Michigan, we know firsthand that a strong economy relies on a robust manufacturing base. For decades, American workers have been undercut by unfair trade deals and left to foot the bill. By reinvesting this revenue back into our own factories and workers, we can strengthen our domestic supply chains, create good-paying jobs, and ensure America leads the global economy in the 21st century,” said Congresswoman Dingell. 

“Decades of shipping production overseas and unfair trade practices from the Chinese Communist Party have hollowed out American manufacturing and left workers to pay the price. By directing up to 50% of tariff revenue collected on Chinese imports under Section 301 into American manufacturing, this bill would expand domestic production, create good-paying jobs, and reduce our reliance on foreign adversaries. I'm glad to co-sponsor this practical long-term investment in America’s workers and industry,” said Congressman Suozzi. 

The Industrial Bank for American Manufacturing Act would:

1. Create a new fund within the Department of Commerce to provide grants, loans, and equity investments that strengthen U.S. manufacturing and reduce strategic supply chain vulnerabilities. 
2. Capitalize the fund using existing Section 301 tariff revenue by directing up to 50 percent of annual tariffs collected on imports from the People's Republic of China—capped at $15 billion per year—toward rebuilding America's industrial base instead of depositing those funds into the Treasury's General Fund. 
3. Support projects that expand domestic manufacturing capacity, modernize existing facilities, commercialize critical and emerging technologies, and strengthen industries essential to U.S. economic and national security. 
4. Prioritize investments in communities harmed by deindustrialization and unfair trade, redevelopment of former industrial sites and brownfields, domestic sourcing, improved production efficiency, lower-emissions manufacturing, and projects that strengthen the U.S. industrial base. 
5. Ensure taxpayer investments support American workers by requiring prevailing wages, apprenticeship opportunities, workforce training investments, restrictions on stock buybacks and offshoring, and prohibiting recipients from expanding operations in countries of concern. 
6. Promote accountability and transparency through public reporting of all awards, regular reports to Congress on program outcomes, and recurring interagency assessments to identify emerging supply chain vulnerabilities and guide future investments. The program sunsets after 10 years.

A one pager on this legislation is available here. 

Full text of the bill can be found here.