Manufacturing Sovereign Wealth Fund

(a) Establishment There is established the Manufacturing Sovereign Wealth Fund (in this Act referred to as the Fund). (b) Objectives The objectives of the Fund are as follows: (1) Rebuild industrial capacity To rebuild industrial capacity, including by revitalizing critical industries hollowed out by offshoring or financialization (e.g., the areas described in the initial list of key technology focus areas under section 10387(c) of the CHIPS Act of 2022 (42 U.S.C. 19107(c))). (2) Promote economic sovereignty To promote economic sovereignty, including by— (A) reducing dependence on foreign supply chains for essential goods and inputs; and (B) ensuring domestic control over strategic production capabilities. (3) Catalyze innovation and advanced manufacturing To catalyze innovation and advanced manufacturing, including by— (A) investing in research, automation, materials science, and process innovation; and (B) supporting commercialization of advanced manufacturing technologies. (4) Create and retain high-quality jobs To create and retain high-quality jobs (as such term is used in Executive Order 14126 (89 Fed. Reg. 73559; published September 11, 2024)), including by— (A) supporting projects that offer strong wages, training, and labor standards; and (B) partnering with workforce development programs, technical education institutions, and labor organizations. (5) Ensure long-term, sustainable returns To ensure long-term, sustainable returns, including by— (A) operating on commercial principles that take into account social and strategic outcomes; and (B) reinvesting profits into industrial, technological, and local community development. (6) Enhance regional development To enhance regional development, including by— (A) investing in areas adversely affected by deindustrialization and economic decline; and (B) strengthening local manufacturing ecosystems and small suppliers. (c) Board of Governors (1) In general The head of the Fund shall be the Board of Governors, which shall consist of 13 members appointed by the President, by and with the advice and consent of the Senate, from among individuals who are citizens of the United States. (2) Representation In appointing members under paragraph (1), the President shall appoint— (A) at least 2 members representing labor; (B) at least 2 members representing workforce development; (C) at least 2 members representing industry and technology; (D) at least 2 members representing regional development; (E) at least 2 members representing academia or science; (F) at least 2 members representing finance and risk management; and (G) at least 1 member representing the Armed Forces of the United States. (3) Chair The members of the Board of Governors shall appoint one member as Chair of the Board of Governors. (4) Term (A) In general The members of the Board of Governors shall serve for a term of 6 years, except that— (i) a member may continue to serve after the expiration of the member’s term until a successor has been confirmed, but not to exceed 1 year; and (ii) subject to clause (i), a member appointed to fill in the remainder of another member’s term shall only serve for the remainder of such term. (B) Staggered initial terms The initial members of the Board of Governors shall be appointed to staggered terms as follows: (i) 2 members shall be appointed for terms of 2 years. (ii) 2 members shall be appointed for terms of 3 years. (iii) 3 members shall be appointed for terms of 4 years. (iv) 3 members shall be appointed for terms of 5 years. (v) 3 members shall be appointed for terms of 6 years. (5) Compensation The Chair of the Board of Governors shall be compensated at Level I of the Executive Schedule (5 U.S.C. 5312) and all other members of the Board of Governors shall be compensated at Level II of the Executive Schedule (5 U.S.C. 5313). (6) Duties The Board of Governors shall— (A) oversee the day-to-day management of the Fund; (B) approve the Fund’s strategic investment plan every year; (C) ensure that the investments of the Fund align with the manufacturing, labor, and economic resilience goals of the United States, as enumerated in the Industrial Sovereignty Strategy described in section 7(b)(4); (D) monitor performance metrics for the Fund; (E) review environmental, labor, and supply chain due diligence on all investments made by the Fund; (F) review and approve annual financial statements, audits, and risk assessments; (G) ensure community and worker representation in the Fund’s decision making; (H) coordinate with the Industrial Sovereignty Council on long-term strategy; and (I) review labor standards for supply chains. (7) Offices The Chair of the Board of Governors may establish such offices within the Fund as the Chair determines necessary or appropriate to address specific issues or sectors. (8) Rulemaking authority The Board of Governors may issue such rules as may be necessary or appropriate to carry out this Act. (9) Information from investment recipients The Board of Governors may request any information from an entity requesting or receiving investments from the Fund that the Board of Governors determines necessary, and such entity shall provide such information to the Board of Governors. (d) Inspector General Section 415(a)(1)(A) title 5, United States Code, is amended by inserting the Manufacturing Sovereign Wealth Fund, before the National Archives and Records Administration.