Taiwan Conflict Deterrence Act of 2025
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Would create a financial deterrence framework targeting senior Chinese Communist Party officials if the President determines China poses a threat to U.S. interests related to Taiwan — requiring Treasury to expose their wealth and banning U.S. banks from doing business with them.
The bill is designed as leverage: by threatening to freeze CCP elites' access to U.S. financial networks and publicize their assets, it aims to raise the personal cost for top Chinese officials of supporting military aggression toward Taiwan.
What this bill would do
What it would do
The bill would establish two linked responses triggered by a Presidential determination — made under the Taiwan Relations Act — that China poses a threat to U.S. interests. First, it would direct the Treasury Department to report to Congress within 90 days on the estimated funds held by at least 10 senior CCP officials, covering Politburo Standing Committee members, other Politburo members, and Central Committee members with Taiwan-related duties. Treasury would also be required to brief Congress within 30 days of each report on how those funds were acquired, including any illicit or corrupt means. The unclassified report would be published on Treasury's website in English, Chinese, and other languages.
After the report is issued, Treasury would be required to prohibit U.S. financial institutions from engaging in significant transactions with covered officials and, where applicable, their immediate family members. The President could waive or exempt individuals from both requirements for national security or diplomatic reasons, with congressional notification. The transaction prohibition would terminate 30 days after the President certifies the threat has ended, or 25 years after the final report, whichever comes first. IEEPA enforcement authorities and penalties would apply to violations.
Key provisions
- 1Would require Treasury to report to Congress within 90 days of a Presidential threat determination on funds held by at least 10 senior CCP officials, with annual updates for three years.
- 2Would require Treasury to brief Congress within 30 days of each report on how covered officials' funds were acquired, including any illicit or corrupt means.
- 3Would require Treasury to publish the unclassified portion of each report on its website and social media in English, Chinese, and other appropriate languages.
- 4Would prohibit U.S. financial institutions and their affiliates from engaging in significant transactions with covered CCP officials and, where appropriate, their immediate family members.
- 5Would apply IEEPA enforcement authorities and penalties to any person who violates, attempts to violate, or conspires to violate the transaction prohibition.
- 6Would terminate the transaction prohibition 30 days after the President certifies the threat has ended, or 25 years after the final required report, whichever is earlier.
Who would be affected
Senior members of the Chinese Communist Party — specifically Politburo Standing Committee members, Politburo members, and Central Committee members with duties affecting Taiwan — and their immediate families. U.S. financial institutions and any entities they own or control would be required to identify covered individuals and cut off significant transactions once the reporting trigger is activated.
Why it matters
If the Presidential trigger is pulled, top CCP officials holding assets in U.S.-connected financial institutions or whose families rely on U.S. financial services would face public exposure of their wealth and sudden transaction bans. U.S. banks would bear significant compliance burdens to identify and sever covered relationships, and violations would carry IEEPA-level penalties.
What would change
Agencies directed to act
Effective dates
- Treasury's first financial report on covered CCP officials is due
- Congressional briefing on how covered officials' funds were acquired
- Transaction prohibition on covered officials and their families takes effect
- Transaction prohibition terminates
Funding and costs
Congressional Budget Office estimate
CBO estimates H.R. 1716 would have no significant effect on the federal budget, with all changes in direct spending, revenues, and the deficit each less than $500,000 over the 2025–2035 period.
CBO estimates that any changes in direct spending and revenues resulting from H.R. 1716 would each be less than $500,000 over the 2025–2035 period, and that any spending subject to appropriation (discretionary spending requiring annual congressional action) would be less than $500,000 over 2025–2030. The main cost drivers are Treasury's reporting requirements and actions by federal financial regulatory agencies, but these would be triggered only if the President formally notifies Congress of a threat to Taiwan — a timing CBO cannot predict. The bill contains no intergovernmental mandates; it does impose a private-sector mandate on U.S. financial institutions (by potentially prohibiting certain transactions with listed Chinese leaders), but CBO estimates the cost would fall well below UMRA's private-sector threshold of $206 million in 2025.
How implementation would work
The entire framework activates on a Presidential determination under the Taiwan Relations Act. Treasury then has 90 days to produce the first financial report on at least 10 named CCP officials, followed by annual reports for three years and a congressional briefing within 30 days of each. Once the report is filed, Treasury enforces the transaction prohibition on covered officials and their families using IEEPA powers. The President may issue waivers for national security or diplomatic reasons, but must notify congressional leadership and relevant committee chairs and ranking members. Violations carry IEEPA civil and criminal penalties.
Legislative status & sources
Latest action
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill, in the event of a threat to U.S. interests by China, (1) requires additional reporting on the domestic and foreign financial activity of specified Chinese officials, and (2) prohibits certain financial transactions with specified Chinese officials.
Upon a determination by the President that such a threat exists, the bill requires the Department of the Treasury to (1) report to Congress on funds held by certain members of the Chinese Communist Party, including the total amount of funds, a description of the funds, and a list of related financial institutions; and (2) brief Congress on how these funds were acquired and any illicit or corrupt means employed to acquire or use the funds. These requirements are subject to specified exemptions and waivers.
After such a report is made, Treasury must prohibit significant transactions between U.S. financial institutions and these individuals (and their immediate family, if appropriate). The bill provides exceptions for intelligence, law enforcement, and national security activities. The President may waive the prohibition under certain circumstances.
Legislative subjects
Asia; Bank accounts, deposits, capital; Banking and financial institutions regulation; China; Congressional oversight; Diplomacy, foreign officials, Americans abroad; Finance and Financial Sector; Foreign and international banking; Fraud offenses and financial crimes; Military operations and strategy; Taiwan
Committee report
H. Rept. 119-48