US Representatives Ro Khanna, Tom Suozzi, and Debbie Dingell introduced the Industrial Bank for American Manufacturing Act. The Industrial Bank for American Manufacturing Act would create a new bank to strengthen domestic manufacturing.

The bill directs up to 50% of collected revenue from tariffs on imports from the People’s Republic of China to the bank, capped at $15bn annually. The bank would provide grants, loans, and equity investments using existing section 301 tariff revenue. Funds from the bank would be directed to rebuild manufacturing in the US rather than deposited into the US treasury’s general fund.

The proposed bank would be provided with up to $15bn in funds each year. The bill caps loans at $500m. The bill requires congressional approval for loans over $100m from the fund.

The funds would target de-industrialized areas of the US, including Johnstown, Pennsylvania; Lordstown, Ohio; the Downriver region of Michigan; and the Lower Bucks county’s Delaware River corridor in Pennsylvania. General Motors shut down a plant in Lordstown, Ohio, in 2019.

Ro Khanna recently took a tour across the US midwest regarding the effects of tariffs on workers, manufacturers, and farmers. "This is one of the boldest industrialization proposals since FDR’s industrialization efforts, and it’s in the tradition of Hamilton’s efforts," Khanna said.

He said the proposal draws on historical precedents for federal industrial support. "We saw this, of course, with FDR during world war two with the war reconstruction board, and we saw it with Hamilton," he said. "It would be an effort to re-industrialize the country."

He described the initiative as part of a broader economic vision. "We need what I call the ‘modern Marshall plan for America’," he said. "This is part of my vision for a Marshall plan for America, that this is the most patriotic and boldest jobs agenda for industrialization since FDR and Bill Knudsen in the 1940s."

He said the bank would address capital allocation issues in the current economy. "We have a country right now where all the capital is going to build AI, technology apps and financial firms, but we need capital also for our small and medium-sized businesses, for our manufacturers," he said. "This bank would support small and medium-sized manufacturers who are making things that we’re currently importing, and it would help thousands of our manufacturers across America to make things here, instead of importing them."

He cited specific instances where manufacturers lacked necessary funding. "They could make the part here, but they didn’t have the money. They needed about a million dollars of capital to do it," he said.

He added that geographic development remains uneven. "We need to be developing not just New York and Silicon Valley and Austin – we need to be developing industry in the midwest, in the south-west, in the south, and I believe an industrial investment bank is a concrete step towards that," he said.

Ro Khanna has served on the House Oversight and Agriculture Committees since his election in 2016, according to his GovTrack.us profile. He co-sponsored the National Development Strategy and Coordination Act, which aimed to establish a federal industrial development bank to coordinate loan programs for key industries, as detailed in an op-ed he authored.

Donald Trump enacted large tariffs on China in 2018. Tariffs on China enacted by Donald Trump were maintained under Joe Biden. US manufacturing employment peaked in 1979 at about 19.6m jobs. US employment in manufacturing has declined since January 2025, according to Bureau of Labor Statistics data.

The legislation proposes redirecting tariff revenue into direct industrial investment rather than general federal funds. The bill targets specific regions that have experienced plant closures and job losses, such as Lordstown, Ohio, where General Motors ended production in 2019. The proposal cites a decline in manufacturing jobs since January 2025 against a historical peak of 19.6 million jobs in 1979.

The act builds on tariff policies established in 2018 and continued under the Biden administration. It seeks to provide capital to small and medium-sized manufacturers in areas outside major technology hubs. The bill requires congressional oversight for loans exceeding $100 million and caps individual loans at $500 million.