No New Burma Funds Act
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Would require the U.S. representative at the World Bank's main lending arm to advocate and vote for continuing the freeze on loans and new financing commitments to Burma's military government, which the World Bank imposed after the 2021 coup that ousted the country's democratically elected government.
What this bill would do
What it would do
The bill would direct the Secretary of the Treasury to instruct the U.S. Executive Director at the International Bank for Reconstruction and Development (IBRD) — the World Bank's primary lending facility for middle-income and some low-income countries — to use the United States' voice and vote to continue the existing pause on IBRD disbursements and new financing commitments to Burma. That pause was put in place after the Burmese military overthrew the country's elected government in 2021. The Treasury Secretary would have discretion to override this directive if it is determined not to be in the national interest.
The bill does not itself impose new sanctions on Burma, freeze any U.S. funds, or alter World Bank governance rules. Its operative effect is to codify a U.S. voting position at a multilateral institution, leaving the underlying lending pause dependent on continued support from the IBRD's full membership.
Key provisions
- 1Would direct the Secretary of the Treasury to instruct the U.S. Executive Director at the IBRD to vote to continue the freeze on disbursements and new financing commitments to Burma.
- 2Would allow the Secretary of the Treasury to waive the directive if continuing the pause is determined not to be in the national interest.
Who would be affected
The U.S. Executive Director at the IBRD and the Secretary of the Treasury, who would be required to coordinate and execute the directed voting position. Indirectly, the Burmese military government would be affected by a continued denial of access to World Bank financing. Civil society and civilian populations in Burma could also be affected depending on what projects any future IBRD lending might otherwise fund.
Why it matters
If enacted, the bill would lock in a formal U.S. policy position at the World Bank against resuming lending to Burma's military regime, reducing the risk that a future administration could quietly reverse course without a national-interest determination. It would also signal continued congressional pressure on multilateral lenders to withhold support from governments that seize power through coups.
What would change
Agencies directed to act
Funding and costs
Congressional Budget Office estimate
CBO estimates that implementing H.R. 4423 would cost less than $500,000 over the 2026–2030 period, with no effect on direct spending, revenues, or the deficit.
CBO estimates that H.R. 4423, the No New Burma Funds Act, would have no effect on direct (mandatory) spending, revenues, or the deficit over the 2026–2035 scoring window. The only anticipated cost — less than $500,000 over 2026–2030 — would come from discretionary spending (funds that Congress must separately appropriate) related to diplomatic efforts by the U.S. Executive Director at the World Bank to advocate for a continued pause on disbursements and new financing to the Government of Burma. CBO found no intergovernmental or private-sector mandates in the bill.
How implementation would work
The Secretary of the Treasury would instruct the U.S. Executive Director at the IBRD to vote against any resumption of disbursements or new financing commitments to Burma. No rulemaking is required; the direction flows through the existing Treasury-to-IBRD executive director chain of command. The only exception is a national-interest waiver, which the Secretary of the Treasury may invoke unilaterally. The bill includes no reporting requirement, no timeline, and no sunset clause.
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 the U.S. Executive Director at the International Bank for Reconstruction and Development (IBRD) to advocate and vote for a continued pause on IBRD disbursements and new financing commitments to Burma unless the Department of the Treasury determines this is not in the national interest.
The IBRD is one of the two major lending facilities of the World Bank and provides loans, guarantees, risk management products, and advisory services to middle-income countries and some creditworthy low-income countries. The World Bank paused disbursements and new financing to Burma after a 2021 military coup in that country.
Legislative subjects
Asia; Burma; Foreign aid and international relief; International Affairs; Multilateral development programs; Sanctions
Committee report
H. Rept. 119-245