Senators Dave McCormick (R-PA) and Tim Kaine (D-VA) have introduced new legislation aimed at reinforcing U.S. leadership at the Inter-American Development Bank (IDB). The proposed Strengthening United States Leadership at the Inter-American Development Bank Act seeks to support economic partners in the Western Hemisphere, offer alternatives to Chinese investment, and create opportunities for American companies that could result in more jobs in the United States.
“We must reassert America’s leadership role in the Western Hemisphere and protect the homeland from the Chinese Communist Party’s efforts to expand its influence in our backyard,” Senator McCormick said. “This bill will strengthen U.S. national security, help American companies create jobs, and provide alternatives to Chinese investment for our allies and partners.”
“The United States must not cede our leadership on the international stage, especially to countries like China,” said Senator Kaine. “That’s why I’m introducing this bipartisan bill with Senator McCormick to strengthen our role at the Inter-American Development Bank to counter China’s influence.”
The IDB, established in 1959, is a key institution for financing development projects across Latin America and the Caribbean. In 2023, it financed $24.3 billion through its public infrastructure and private sector programs.
China holds almost 5% of voting power in IDB Invest—the bank’s private sector arm—while the U.S. maintains a 15% share. Despite China’s small ownership stake of just 0.004% on the public sector side of the IDB, Chinese firms have secured significant contracts such as a $4 billion project for Bogotá’s metro system in Colombia. Over the past decade and a half, U.S. companies have won about 1% of public-sector procurement contracts from IDB projects compared to approximately 3% for Chinese firms.
The bill directs the U.S. Executive Director at the IDB to use America’s influence within the organization to limit China’s involvement in bank operations and prevent any increase in China’s voting power relative to that of the United States.
Additional provisions include encouraging greater participation by U.S.-based or allied companies in IDB procurement processes rather than those from China; supporting policies that emphasize value for money, transparency, and integrity over simply selecting bids with lowest upfront costs; and enhancing cooperation between the IDB and agencies such as the U.S. International Development Finance Corporation.
