PROTECT Taiwan Act
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Would direct the Treasury Department, the Federal Reserve, and the Securities and Exchange Commission to work to exclude Chinese representatives from six major international financial organizations — including the Group of Twenty and the Bank for International Settlements — if the President notifies Congress of a Chinese threat to Taiwan's security or U.S. interests.
The bill creates a conditional but potentially significant pressure tool tied to the existing Taiwan Relations Act notification process, with a built-in five-year sunset and a presidential waiver option.
What this bill would do
What it would do
The bill would establish U.S. policy to seek the exclusion of Chinese representatives from six international financial organizations — the Group of Twenty, the Bank for International Settlements, the Financial Stability Board, the Basel Committee on Banking Supervision, the International Association of Insurance Supervisors, and the International Organization of Securities Commissions — if the President notifies Congress under the Taiwan Relations Act that China's actions pose a threat to Taiwan's security or social or economic system and a danger to U.S. interests. Once triggered, the Treasury Department, the Federal Reserve, and the Securities and Exchange Commission would be required to take all necessary steps to advance that exclusion policy.
The President could waive the policy for any individual organization by filing a national-interest report with the House Financial Services Committee and the Senate Banking Committee. The entire Act would expire five years after enactment or 30 days after the President notifies Congress that termination is in the national interest, whichever is earlier.
Key provisions
- 1Would establish U.S. policy to seek exclusion of Chinese representatives from six international financial organizations if the President notifies Congress of a Chinese threat to Taiwan's security or U.S. interests.
- 2Would require the Treasury Department, the Federal Reserve, and the SEC to take all necessary steps to advance the exclusion policy once the presidential trigger is activated.
- 3Would grant the President authority to waive the exclusion policy for any organization by submitting a national-interest report to specified congressional committees.
- 4Would sunset the entire Act five years after enactment or 30 days after the President notifies Congress that termination is in the national interest, whichever is earlier.
Who would be affected
U.S. financial regulators — particularly the Treasury Department, the Federal Reserve, and the Securities and Exchange Commission — who would face a binding legal obligation to pursue China's exclusion once triggered. Chinese government representatives who participate in the six named international financial organizations would also be directly affected, as would other member nations and institutions operating within those forums.
Why it matters
If the presidential trigger were activated, U.S. regulators would be legally required to work toward removing China from major global financial governance bodies — a step that could significantly strain U.S.-China relations and reshape how international banking standards, insurance supervision, and securities regulation are coordinated globally, with consequences extending well beyond Taiwan policy.
What would change
Agencies directed to act
Effective dates
- The Act expires — whichever comes first: five-year sunset or 30 days after presidential termination notice
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 1531 would cost less than $500,000 over the 2026–2030 period, with no effect on direct spending, revenues, or the deficit.
CBO estimates that implementing H.R. 1531 — which would direct the Treasury Department, the Federal Reserve, and the SEC to take steps to exclude China from international financial organizations such as the G20 and the Bank for International Settlements if the President determines Taiwan's interests are threatened — would cost less than $500,000 over the 2026–2030 period, based on the costs of diplomatic efforts to influence other nations and international organizations. That spending would be subject to the availability of appropriated funds (i.e., Congress would need to provide the money through the annual appropriations process). The bill would have no effect on direct (mandatory) spending or federal revenues, and CBO found no intergovernmental or private-sector mandates.
How implementation would work
The bill's exclusion obligations activate only when the President formally notifies Congress under the Taiwan Relations Act's existing threat-notification procedure. Once triggered, the Treasury Department, Federal Reserve, and SEC must take all necessary steps to pursue Chinese exclusion from each of the six named organizations. The President can suspend the policy on a per-organization basis by filing a national-interest waiver report with the House Financial Services Committee and the Senate Banking Committee. The bill expires automatically five years after enactment or 30 days after a presidential termination notice, whichever comes first.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Foreign Relations.
Official CRS summary
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This bill requires certain federal entities to seek to exclude China from six international financial organizations if the President informs Congress that China's actions threaten Taiwan and pose a danger to U.S. interests.
Specifically, the bill establishes that it is U.S. policy to seek to exclude Chinese representatives from participating in the activities of six international organizations if the President informs Congress that China's actions pose any (1) threat to Taiwan's security, economic system, or social system; and (2) danger to U.S. interests.
The six specified organizations are
- the Group of Twenty,
- the Bank for International Settlements,
- the Financial Stability Board,
- the Basel Committee on Banking Supervision,
- the International Association of Insurance Supervisors, and
- the International Organization of Securities Commissions.
In the event that the President so informs Congress, the bill requires the Department of the Treasury, the Federal Reserve, and the Securities and Exchange Commission to take all necessary steps to advance the exclusion policy.
The President may waive the application of this policy to an organization if doing so is in the national interest of the United States.
Legislative subjects
Asia; Banking and financial institutions regulation; China; Foreign and international banking; International Affairs; Presidents and presidential powers, Vice Presidents; Sanctions; Taiwan
Committee report
H. Rept. 119-388