Key facts
- A bill has been introduced in the U.S. Congress to create a new bank focused on domestic manufacturing.
- The proposed bank would be funded by revenue from tariffs on imports from China, capped at $15 billion per year.
- The legislation, named the Industrial Bank for American Manufacturing Act, aims to support small and medium-sized manufacturers.
- The funds are intended to rebuild manufacturing in de-industrialized areas of the U.S.
- The bill is led by U.S. Representatives Ro Khanna, Tom Suozzi, and Debbie Dingell.
Democratic lawmakers in the U.S. Congress have proposed a significant initiative to revitalize American manufacturing by establishing a new bank funded through tariffs imposed on goods imported from China. The proposed legislation, titled the Industrial Bank for American Manufacturing Act, aims to provide financial support, including grants, loans, and equity investments, to domestic manufacturers, particularly small and medium-sized businesses.
Led by Representatives Ro Khanna, Tom Suozzi, and Debbie Dingell, the bill seeks to direct up to 50% of the revenue generated from Section 301 tariffs on Chinese imports, capped at $15 billion annually, into this new bank. These funds would be used to rebuild manufacturing capacity in de-industrialized regions across the U.S., such as Johnstown, Pennsylvania; Lordstown, Ohio; and the Downriver region of Michigan. This approach is framed as a modern industrialization effort, drawing historical parallels to initiatives by Franklin D. Roosevelt during World War II and Alexander Hamilton.
Representative Khanna emphasized that the bank would focus on manufacturers producing goods currently imported into the U.S. and would target areas hit hard by the decline of American industry. He described the proposal as a "modern Marshall plan for America" and a patriotic jobs agenda. The bill includes provisions such as a $500 million cap on individual loans and requires congressional approval for loans exceeding $100 million.
The proposal comes amid a long-term decline in U.S. manufacturing employment, which peaked in 1979 and has continued to fall despite past promises of revival. Data indicates a further loss of manufacturing jobs since early 2025. The legislation follows a recent "heartland tour" by Khanna, where he heard from manufacturers struggling to secure capital for domestic production, highlighting a perceived imbalance where capital is heavily directed towards AI, technology, and financial firms rather than traditional manufacturing.