I 
119TH CONGRESS 
1ST SESSION 
H. R. 509 
To decrease dependency on People’s Republic of China manufacturing and 
decrease migration due to lost regional economic opportunities. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 16, 2025 
Mr. GREEN of Tennessee introduced the following bill; which was referred to 
the Committee on Ways and Means, and in addition to the Committee 
on Foreign Affairs, 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 decrease dependency on People’s Republic of China manu-
facturing and decrease migration due to lost regional 
economic opportunities. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Western Hemisphere 
Nearshoring Act’’. 
SEC. 2. FINDINGS. 
Congress finds the following: 
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(1) Our neighbors in the Western Hemisphere 
play a vital role in ensuring peace, security, and de-
mocracy. 
(2) Instability and lack of economic opportuni-
ties in the region are major drivers of migration in 
violation of the Immigration and Nationality Act. 
(3) According to the United States Census Bu-
reau, in 2021 the United States exported $174.62 
billion worth of goods to Central and South America, 
and imported $121 billion. 
(4) The United States is a net exporter with 
Central and South America. 
(5) Economic growth and development of the 
Western Hemisphere brings essential strength and 
stability to the region. 
(6) There is significant opportunity to expand 
the free flow of goods and services in the Western 
Hemisphere. 
(7) Closer relations among the Americas 
through free trade agreements and trade liberaliza-
tion would encourage further economic development 
and stability in the region. 
(8) The United States should exercise its influ-
ence to encourage privatization, free markets, and 
economic cooperation in the region. 
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(9) Countries in the region should combat cor-
ruption, strengthen the rule of law, reduce bureau-
cratic red tape, streamline permitting, and embrace 
free market principles to encourage further private 
sector investment. 
(10) With cooperation from the United States, 
regional countries must take serious steps to curb 
migration in violation of the Immigration and Na-
tionality Act. 
(11) The Western Hemisphere has supply 
chains that are vulnerable due to their over depend-
ence on the People’s Republic of China. 
(12) Free trade and expanded commercial ties 
between the United States and Western Hemisphere 
partners will foster economic and commercial co-
operation, increase investment opportunities, de-
crease migration in violation of the Immigration and 
Nationality Act, reduce our dependence on the Peo-
ple’s Republic of China, and create jobs for Amer-
ican workers. 
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SEC. 3. USE OF UNITED STATES INTERNATIONAL DEVELOP-
MENT FINANCE CORPORATION FUNDS TO FI-
NANCE MOVING EXPENSES AND NECESSARY 
WORKFORCE 
DEVELOPMENT 
COSTS 
IN-
CURRED BY COMPANIES MOVING FROM THE 
PEOPLE’S REPUBLIC OF CHINA TO LATIN 
AMERICA OR THE CARIBBEAN. 
(a) USE OF FUNDS.— 
(1) IN
GENERAL.—The United States Inter-
national Development Finance Corporation, in co-
ordination with relevant Federal agencies (including 
the United States Trade and Development Agency, 
the Export-Import Bank of the United States, the 
United States Army Corps of Engineers, and the 
United States Agency for International Develop-
ment) and the United States Executive Directors of 
relevant international financial institutions (includ-
ing the World Bank Group, the Inter-American De-
velopment Bank, and the International Monetary 
Fund), shall use not less than 10 percent of the 
amounts made available to provide financing under 
section 1421 of the Better Utilization of Investments 
Leading to Development Act of 2018 (22 U.S.C. 
9621) for each fiscal year beginning after the date 
of the enactment of this Act to finance the qualified 
moving costs and necessary workforce development 
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costs of, and reduce the interest rate on any loan to 
be provided by the DFC to the interest rate de-
scribed in paragraph (3) to, any qualified corpora-
tion that is eligible for, or a recipient of, assistance 
from the DFC, to the extent of qualifying applica-
tions for assistance under this section. 
(2) AVAILABILITY
OF
UNUSED
AMOUNTS.—If 
the DFC does not use the entire amount described 
in paragraph (1) for a fiscal year described in such 
paragraph, such amount shall, to the maximum ex-
tent practicable, be made available to the DFC for 
the next fiscal year to carry out this section or other 
DFC programs for Latin American or Caribbean 
countries. 
(3) INTEREST RATE DESCRIBED.—The interest 
rate described in this paragraph is— 
(A) the Federal funds rate; or 
(B) the interest rate that is determined by 
reducing by not less than 1⁄2 of 1 percent and 
not more than 1 percent (but to not less than 
zero percent) the interest rate on the loan to be 
provided by the DFC to the qualified corpora-
tion, 
whichever is the lesser. 
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(b) NO NEGATIVE EFFECTS ON EMPLOYMENT IN 
THE UNITED STATES.—The DFC shall not provide assist-
ance under this section unless the Secretary of Commerce 
has determined that the provision of the assistance would 
not result in a negative effect on employment in the 
United States. 
(c) DISPOSITION OF UNUSED ASSISTANCE.—A cor-
poration to which financing is made under this section 
shall remit to the DFC any portion of the assistance that 
is not expended within a period of time after the date the 
financing is made that is determined by the DFC on a 
case-by-case basis. 
(d) CONDITIONS
ON PROVISION
OF LOANS.—The 
DFC— 
(1) may provide loans under this section to a 
corporation only if the loans are commercially viable, 
as determined by the DFC; and 
(2) shall determine an appropriate amount of 
time for repayment of loans under this section to a 
corporation. 
(e) PLAN.—Not later than 180 days after the date 
of the enactment of this Act, the DFC shall develop and 
submit to the Committee on Foreign Affairs of the House 
of Representatives and the Committee on Foreign Rela-
tions of the Senate a plan to streamline the provision of 
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assistance under this section, including to expedite the ap-
proval process for the provision of such assistance. 
SEC. 4. AUTHORITY TO PROVIDE DUTY-FREE TREATMENT 
FOR GOODS AND SERVICES OF COMPANIES 
MOVING FROM THE PEOPLE’S REPUBLIC OF 
CHINA TO LATIN AMERICA OR THE CARIB-
BEAN. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the President shall proclaim duty-free treat-
ment (or other preferential treatment) for any good or 
service made or produced in a Latin American or Carib-
bean country by a qualified corporation that has received 
assistance under section 3, subject to such terms and con-
ditions as the President determines to be appropriate. 
(b) REGULATIONS.—The President shall prescribe 
such regulations as may be necessary to carry out this 
section. 
(c) EFFECTIVE PERIOD.— 
(1) IN GENERAL.—Subsection (a) shall apply 
with respect to a good or service made or produced 
in a Latin American or Caribbean country by a cor-
poration for the 15-year period beginning on the 
date on which the corporation begins operations in 
such country. 
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(2) RULE OF CONSTRUCTION.—Nothing in this 
section may be construed to affect duty-free treat-
ment (or other preferential treatment) for any good 
or service made or produced in a Latin American or 
Caribbean country by a qualified corporation after 
the 15-year period described in paragraph (1) if 
goods and services from such country are otherwise 
generally eligible for duty-free treatment (or other 
preferential treatment). 
SEC. 5. ADDITIONAL CONDITIONS ON RECEIPT OF ASSIST-
ANCE UNDER SECTION 3 AND DUTY-FREE 
TREATMENT 
(OR 
OTHER 
PREFERENTIAL 
TREATMENT) UNDER SECTION 4. 
(a) IN GENERAL.—The appropriate Federal agency 
may not provide assistance under section 3 or duty-free 
treatment (or other preferential treatment) under section 
4 to a corporation unless— 
(1) the agency determines that the corporation 
will create jobs in the Latin American or Caribbean 
country to which it moves operations in numbers de-
termined by the agency to be commensurate with the 
assistance provided; 
(2) the corporation makes a binding commit-
ment to the agency that on and after the date the 
assistance is provided— 
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(A) the corporation will not come under 
the ownership or control of the Government of 
the People’s Republic of China or the Chinese 
Communist Party, the Government of the Rus-
sian Federation, or any other foreign adversary; 
and 
(B) the corporation will not have its head-
quarters in the People’s Republic of China, the 
Russian Federation, or any other foreign adver-
sary; 
(3) within 2 years after the date described in 
paragraph (2), and subject to an additional exten-
sion as determined appropriate by the agency, all as-
sets of the corporation with respect to which the as-
sistance is provided will have been moved from the 
People’s Republic of China to a Latin American or 
Caribbean country; and 
(4) the corporation retains all assets of the cor-
poration with respect to which the assistance is pro-
vided in a Latin American or Caribbean country 
after the date described in paragraph (2) or the last 
day of the extension described in paragraph (3), as 
the case may be. 
(b) COMPLIANCE DETERMINATIONS.— 
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(1) IN
GENERAL.—The appropriate Federal 
agency, in coordination with the Department of 
State, shall make all determinations regarding com-
pliance with the provisions of subsection (a). 
(2) NON-COMPLIANCE
ACTIONS.—A qualified 
corporation that has received assistance under sec-
tion 3 or duty-free treatment (or other preferential 
treatment) under section 4 that is subsequently de-
termined by the appropriate Federal agency not to 
be in compliance with the provisions of subsection 
(a) shall be subject to the following actions: 
(A) Any good or service made or produced 
in a Latin American or Caribbean country by 
the corporation (other than a good or service 
made or produced in a free trade zone or which 
is subject to benefits under a free trade agree-
ment) shall not be eligible for duty-free treat-
ment (or other preferential treatment) under 
section 4. 
(B) The appropriate Federal agency shall 
adjust the interest rate on any loan to be pro-
vided by the agency to the corporation to the 
prevailing market interest rate. 
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(c) APPROPRIATE FEDERAL AGENCY DEFINED.—In 
this section, the term ‘‘appropriate Federal agency’’ 
means— 
(1) with respect to actions relating to assistance 
under section 3, the DFC; and 
(2) with respect to actions relating to duty-free 
treatment (or other preferential treatment) under 
section 4, the United States Trade Representative. 
SEC. 6. EXPENSES PAID FOR WITH TARIFFS COLLECTED 
FROM THE PEOPLE’S REPUBLIC OF CHINA. 
(a) ESTABLISHMENT OF TRUST FUND.—There is es-
tablished in the Treasury of the United States a trust fund 
consisting of such amounts as are appropriated to such 
trust fund under subsection (b). 
(b) APPROPRIATIONS TO TRUST FUND.—There are 
hereby appropriated to such trust fund amounts equiva-
lent to the tariffs collected by the United States on goods 
manufactured in the People’s Republic of China. 
(c) APPROPRIATIONS FROM TRUST FUND.—There 
are hereby appropriated from such trust fund to the Gen-
eral Fund of the Treasury amounts equivalent to the re-
duction in revenue to such General Fund by reason of as-
sistance provided by the DFC under this Act. 
(d) TIMING OF TRANSFERS, ETC.—Rules similar to 
the rules of section 9601 of the Internal Revenue Code 
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of 1986 shall apply with respect to appropriations to and 
from such trust fund under subsections (b) and (c). 
SEC. 7. AMENDMENTS TO THE BUILD ACT OF 2018. 
(a) STATEMENT OF POLICY.—Section 1411 of the 
Better Utilization of Investments Leading to Development 
Act of 2018 (22 U.S.C. 9611) is amended— 
(1) in paragraph (7), by striking ‘‘and’’ at the 
end; 
(2) in paragraph (8), by striking the period at 
the end and inserting a semicolon; and 
(3) by adding at the end the following: 
‘‘(9) to further United States economic growth 
by prioritizing United States-owned businesses in 
providing support under title II; and 
‘‘(10) to further United States national security 
by prioritizing the production of goods in critical in-
dustries, as determined by the Corporation, in con-
sultation with the Department of Homeland Secu-
rity.’’. 
(b) PROHIBITION ON SUPPORT FOR STATE-OWNED 
ENTERPRISES.— 
(1) IN GENERAL.—Title V of the Better Utili-
zation of Investments Leading to Development Act 
of 2018 (22 U.S.C. 9671 et seq.) is amended by 
adding at the end the following: 
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‘‘SEC. 1455. PROHIBITION ON SUPPORT FOR ENTITIES 
OWNED OR CONTROLLED BY FOREIGN GOV-
ERNMENTS. 
‘‘(a) IN GENERAL.—Except as provided in subsection 
(b), the Corporation is prohibited from providing support 
under title II for an entity owned or controlled by a for-
eign government. 
‘‘(b) EXCEPTION.— 
‘‘(1) IN GENERAL.—The Corporation may pro-
vide feasibility studies and technical assistance 
under title II for an entity owned or controlled by 
a foreign government that is not a foreign adversary. 
‘‘(2) FOREIGN ADVERSARY DEFINED.—In this 
subsection, the term ‘foreign adversary’ means a for-
eign government engaged in a long-term pattern or 
serious instances of conduct significantly adverse to 
the national security of the United States or security 
and safety of United States persons.’’. 
(2) CLERICAL AMENDMENT.—The table of con-
tents for the FAA Reauthorization Act of 2018 (49 
U.S.C. 40101 note) is amended by inserting after 
the item relating to section 1454 the following: 
‘‘Sec. 1455. Prohibition on support for entities owned or controlled by foreign 
governments.’’. 
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SEC. 8. TRADE NEGOTIATING AUTHORITY. 
(a) IN GENERAL.—The United States Trade Rep-
resentative shall take action to initiate negotiations to ob-
tain trade agreements with each Latin American or Carib-
bean country that as of the date of the enactment of this 
Act is not a party to a free trade agreement with the 
United States if the country meets the conditions de-
scribed in subsection (b). 
(b) CONDITIONS DESCRIBED.—The conditions de-
scribed in this subsection are the following: 
(1) The country is taking steps to reduce mi-
gration in violation of the Immigration and Nation-
ality Act. 
(2) The country is taking steps to reduce eco-
nomic dependence on the People’s Republic of 
China. 
(3) The country allows Taiwan to establish and 
maintain a commercial office in the country. 
SEC. 9. AGREEMENTS FOR COOPERATION PURSUANT TO 
SECTION 123 OF THE ATOMIC ENERGY ACT 
OF 1954. 
(a) IN GENERAL.—The President is authorized to 
take action to initiate negotiations with Latin American 
and Caribbean countries to obtain agreements for coopera-
tion pursuant to section 123 of the Atomic Energy Act 
of 1954 (42 U.S.C. 2153) to approve the sales of nuclear 
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reactors to such countries, or to qualified corporations 
that receive assistance under this Act, but only if— 
(1) the President determines that such sales 
will not threaten the national security of the United 
States; and 
(2) the countries or qualified corporations, as 
the case may be, meet the conditions described in 
paragraphs (1), (2), and (3) of section 8(b). 
(b) TECHNICAL ASSISTANCE AND EXPERTISE.—The 
Administrator of the United States Agency for Inter-
national Development, in consultation with the Secretary 
of Energy and the DFC, may provide technical assistance 
and expertise in electrical grid and energy efficiency im-
provements related to sales under subsection (a), as appro-
priate. 
SEC. 10. TEMPORARY INCREASED EXPENSING FOR RELO-
CATING MANUFACTURING FROM THE PEO-
PLE’S REPUBLIC OF CHINA TO A LATIN 
AMERICAN OR CARIBBEAN COUNTRY. 
(a) IN GENERAL.—For purposes of section 168(k) of 
the Internal Revenue Code of 1986, in the case of any 
qualified relocated manufacturing property which is placed 
in service by a qualified manufacturer after the date of 
the enactment of this Act, and before January 1, 2038— 
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(c) QUALIFIED MANUFACTURER.—For purposes of 
this section, the term ‘‘qualified manufacturer’’ means any 
person— 
(1) which is engaged in the trade or business of 
manufacturing any tangible personal property, 
(2) with respect to which the Secretary of the 
Treasury (or the Secretary’s delegate) has made the 
determination described in section 5(a)(1), and 
(3) which has entered into a binding agreement 
with such Secretary (or such delegate) to meet the 
requirements of section 5(a)(2) which is enforceable 
under terms similar to the terms of section 5(b). 
SEC. 11. DEFINITIONS. 
In this Act: 
(1) DFC.—The term ‘‘DFC’’ means the United 
States International Development Finance Corpora-
tion. 
(2) 
QUALIFIED
CORPORATION.—The 
term 
‘‘qualified corporation’’ does not include a State- 
owned enterprise. 
(3) QUALIFIED MOVING COSTS DEFINED.—The 
term ‘‘qualified moving costs’’ means— 
(A) the costs of moving inventory, equip-
ment, and supplies from the People’s Republic 
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of China to a Latin American or Caribbean 
country; and 
(B) the costs of workforce development 
and construction of facilities. 
(4) LATIN AMERICAN OR CARIBBEAN COUNTRY; 
WESTERN HEMISPHERE.— 
(A) IN
GENERAL.—The terms ‘‘Latin 
American or Caribbean country’’ and ‘‘Western 
Hemisphere’’— 
(i) mean a country in the Caribbean 
Sea, South America, or Central America, 
and Mexico; and 
(ii) except as provided in subpara-
graph (B), do not include Cuba or Ven-
ezuela. 
(B) EXCEPTION.—The term ‘‘Latin Amer-
ican or Caribbean country’’ shall include Cuba 
or Venezuela if the Secretary of State deter-
mines and certifies to Congress that— 
(i) the government of such country— 
(I) has held free and fair presi-
dential and legislative elections, as de-
termined by independent international 
observers, and subsequent elections 
are scheduled; 
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(II) respects and upholds human 
rights; 
(III) is taking significant steps to 
privatize its economy and institute a 
free market; 
(IV) permits the international 
community to provide humanitarian, 
governance, and economic develop-
ment assistance; 
(V) has freed all unlawfully de-
tained United States citizens, legal 
permanent residents, and political 
prisoners; and 
(VI) has expelled all security 
services from foreign adversaries from 
the country; and 
(ii) the prior authorities of such coun-
try have renounced their illegitimate claim 
to power. 
(5) FEDERAL FUNDS RATE.—The term ‘‘Fed-
eral funds rate’’ means the discount window primary 
credit interest rate most recently published on the 
Federal Reserve Statistical Release on selected inter-
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est rates (daily or weekly), commonly referred to as 
the H.15 release. 
Æ 
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