February 7, 2025
Mrs. Cherfilus-McCormick (for herself, Ms. Schakowsky, and Mr. Jackson of Illinois) introduced the following bill; which was referred to the Committee on Foreign Affairs, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned
To authorize the establishment of a Haitian American Enterprise Fund for Haiti, and for other purposes.
Section 1. Short title
This Act may be cited as the L’Ouverture Economic Development Plan for Haiti Act of 2025
.
Sec. 2. Findings
Congress finds the following:
(1)
The General Secretariat of the Organization of the American States stated in 2022, The international community, international financial institutions, the multilateral system, and the international financial community of donor countries must make a decision: whether they want to industrialize Haiti sufficiently to ensure work for nine million Haitians, or whether it is economically more profitable to continue absorbing Haitian migrants and let host countries accommodate them as and how they can and in such economic conditions as they can offer.
.
(2)
Rather than building upon the ongoing lucrative trade relations with a newly independent Republic of Haiti in 1804, the United States decided to impose a trade embargo on the nascent state in 1806 because Haiti’s independence ended chattel slavery in its land and perceived it as a threat because it became the world’s first Black republic.
(3)
After its independence, Haiti was made to pay an indemnity to France, its former colonial power, beginning in 1825, for breaking away from slavery, which amounts to at least $21,000,000,000 today, setting the stage for Haiti’s dire impoverishment today.
(4)
Haiti’s independence from France in 1804 directly resulted in France selling the bulk of its possessions in mainland North America in what became the Louisiana Purchase, fueling the westward expansion of the young United States to the Pacific Ocean in what is today States such as Arkansas, Colorado, Iowa, Louisiana, Kansas, Montana, Missouri, and Nebraska.
(5)
Despite a tortured relationship, Haiti has long been a reliable partner of the United States. For example, after the bombing of Pearl Harbor in 1941, Haiti was among the first nations to join the United States in World War II and contributed funds to the United States effort.
(6)
Haiti bears a strategic importance to the United States due to its location in the Western Hemisphere.
(7)
Haitian Americans continue to make important contributions to the United States economy and have played a significant role in education, health care, literature, politics, art, and culture.
(8)
The Bureau of the Census estimates that the Haitian-American population is 1.2 million, which many believe may be severely undercounted, as persons of Haitian descent have been coming to the United States since prior to the founding of the United States.
(9)
The Haitian American population plays a vital role in Haiti’s development efforts, leveraging their resources, expertise, and networks to support education, technology, sustainable development, resilience, and prosperity in the country and could do much more in partnership with the United States Government.
(10)
According to the World Bank, the Haitian diaspora sent over $4,000,000,000 in remittances to Haiti in 2023, equaling more than one-fifth of the country’s gross domestic product with these remittances having a crucial role in Haiti’s economy, providing a steady source of income for families in Haiti, contributing to poverty reduction, amounting to more than the sum of yearly foreign assistance to the country.
(11)
Haiti has played a pivotal role in Afro-descendants’ struggle for American values such as freedom in America, the Caribbean, and African countries, including the Haitian American leaders such as W.E.B. DuBois, cofounder of the National Association for the Advancement of Colored People, who have contributed to the Civil Rights movement in the United States and across the world.
(12)
Assisting Haiti with a well-processed development program leading to sustainable economic development that keeps Haitians at home is in the vital interest of the United States.
(13)
The United States should assist Haiti in establishing sustainable inclusive development to meet the needs of all of its people, instead of being drawn to the lure of debt-trap driven development promoted by the People’s Republic of China.
(14)
According to the United Nations Conference on Trade and Development, Haiti will need, at minimum, an estimate of $19,300,000,000 (in 2020/2021 dollars) to meet key development metrics including to—
(A)
achieve 7 percent annual GDP growth;
(B)
eliminate extreme poverty;
(C)
double manufacturing growth;
(D)
improve health and well-being;
(E)
improve quality primary and secondary formal education leading to relevant and effective learning outcomes; and
(F)
protect environmental biodiversity.
Sec. 3. Purposes
The purposes of this Act are to promote and facilitate—
(1)
development of the Haitian private sector, particularly micro, small, and medium businesses, the agriculture, biodiversity, construction, energy, finance, manufacturing, and tourism industries, and U.S.-Haitian joint ventures, including the Haitian-American diaspora;
(2)
policies and practices conducive to Haitian private sector development through equity investments, feasibility studies, grants, guarantees, insurance, loans, technical assistance, and training;
(3)
an economic environment conducive for an accountable, transparent, and sustained democratic system of governance in Haiti, inclusive for its people, in coordination with the Global Fragility Act of 2019 (section 501 of title V of division J of Public Law 116–94; Stat. 3060); and
(4)
policies that engender conditions for an industrialized Haiti sufficient to ensure work at full employment levels meeting United Nations medium to high human development from human development index indicators for the people of Haiti, thereby reducing irregular migration flows from the country, a United States national security concern.
Sec. 4. Statements of policy
It is the policy of the United States to support the sustainable rebuilding and development of Haiti in a manner that—
(1)
recognizes that the United States has longstanding historical, economic, and cultural ties to Haiti, with millions of Americans tracing their heritage to the country, and has a vested interest in Haiti’s stability and development;
(2)
recognizes Haitian independence, self-reliance, and sovereignty;
(3)
acknowledges that it is in the United States national and regional security interest to assist a stable, democratic and prosperous Haiti that will consequently reduce irregular migration, regional crime, narcotics proliferation, and insecurity;
(4)
supports the restoration of democratic governance in Haiti through free, fair, and transparent elections as an essential condition for reestablishing lasting security, economic development, and the national interests of Haiti and the United States by—
(A)
supporting the self-determination of the Haitian people and recognizing that the sovereign and national right of the citizens of Haiti must be exercised free of interference;
(B)
acknowledging that any political transition must come from a Haitian-led solution; and
(C)
opposing any efforts to destabilize the state of Haiti;
(5)
supports democratic transition, the strengthening of institutions, good governance, and the rule of law in Haiti by—
(A)
assisting in strengthening Haiti’s institutions, judiciary system, governance structures and mechanisms to better respond to the needs of Haitians;
(B)
supporting anticorruption efforts;
(C)
promoting press freedom;
(D)
supporting the empowerment of Haitian civil society;
(E)
improving transparency and the independence of the media;
(F)
preventing favorable treatment or influence on behalf of any individual, entity, or party in the selection by the Haitian people of their future government; and
(G)
reducing violence against women and children and addressing human rights concerns, including through the enforcement of sanctions imposed in accordance with the Global Magnitsky Human Rights Accountability Act (22 U.S.C. 2656 note) on individuals implicated in human rights violations and corruption;
(6)
improves Haiti’s security by—
(A)
supporting the goals of the U.S. Strategy to Prevent Conflict and Promote Stability 10-Year Plan for Haiti report, a derivative of the Global Fragility Act of 2019;
(B)
supporting continued funding of the Haitian National Police;
(C)
supporting Haiti’s and international efforts to assist the Haitian National Police in combating internal insecurity, including gang violence;
(D)
stemming the flow of illicit firearms trafficking from the United States to the Caribbean, including Haiti;
(E)
encouraging the development of civilian oversight of the Haitian National Police;
(F)
encouraging the Haitian National Police to respect human rights and uphold anti-corruption measures in its practices; and
(G)
encouraging a Disarmaments, Demobilization, and Reinsertion program to reduce criminality and protect the youth;
(7)
addresses humanitarian needs by providing appropriate forms of assistance, such as humanitarian assistance, to the people of Haiti by addressing urgent food security, health, and education needs as well as protecting women and children;
(8)
spurs economic development by—
(A)
leveraging public and private source funding to address Haiti’s long term development goal and achieving United Nations Sustainable Development Goals;
(B)
helping, creating, and enabling an environment that facilitates trade and investment in Haiti;
(C)
assisting in building the resilient and supportive physical infrastructure sector required for a stable and prosperous country, including country-wide access to reliable electricity, passable roads, ports, railroads, water, sanitation and health programs and digital infrastructure;
(D)
reducing poverty and building prosperity by providing capacity building support to promote entrepreneurship and support small and medium-sized enterprises, including participation of Haitian women and youth in governmental and nongovernmental institutions and in economic development and governance assistance programs funded by the United States;
(E)
supporting trade preferences with Haiti, including the preferences created through the Haitian Hemispheric Opportunity Through Partnership Act of 2006 (title V of division D of Public Law 109–432; 120 Stat. 3181) and the Haiti Economic Lift Program Act of 2010 (19 U.S.C. 2703 et seq.);
(F)
assisting in building the long-term capacity of the Government of Haiti, civil society, local resource mobilization in Haiti, and the private sector to foster economic opportunities in Haiti; and
(G)
fostering collaboration and activities between the Haitian diaspora in the United States, including dual citizens of Haiti and the United States, and the Government of Haiti, local resource mobilization in Haiti, and the business community in Haiti;
(9)
encourages other countries, along with bilateral and multilateral organizations, to provide similar assistance and to work cooperatively with such countries and organizations to coordinate such assistance; and
(10)
respects and helps restore the natural resources of Haiti and strengthens community-level resilience to environmental and weather-related impacts.
Sec. 5. Haitian American Enterprise Fund for Haiti
(a) Designation
The President may designate a private, nonprofit organization (as described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of such code) as the Haitian American Enterprise Fund for Haiti (in this Act referred to as the Enterprise Fund
), if the President—
(1)
determines that such organization has the ability to carry out the activities described in section 7; and
(2)
has consulted with the Speaker and the minority leader of the House of Representatives and the majority leader and the minority leader of the Senate regarding such designation.
(b) Operation
Upon the designation of the Enterprise Fund under subsection (a), the Chief Executive Officer of the United States International Development Finance Corporation shall operate such Fund.
(c) Consultation
The Chief Executive Officer may consult and coordinate with the Administrator of the United States Agency for International Development regarding the Enterprise Fund.
(d) Private character of Enterprise Fund
Nothing in this Act may be construed to make—
(1)
the Enterprise Fund an agency or establishment of the United States Government; or
(2)
the officers and employees of the Enterprise Fund or members of the Oversight Panel officers or employees of the United States for purposes of title 5, United States Code.
Sec. 6. Oversight Panel
(a) In general
The Enterprise Fund shall be monitored by a Board of Directors Oversight Panel (hereafter referred to as the Oversight Panel
) composed of 9 members.
(b) Composition
(1) Appointments by Chief Executive Officer
The Chief Executive Officer shall appoint to the Oversight Panel—
(A)
5 individuals who are not employed by the Federal Government and—
(i)
are citizens of the United States; or
(ii)
are citizens of the Republic of Haiti who—
(I)
primarily reside in the United States; and
(II)
have demonstrated respect for democracy and a free-market economy; and
(B)
2 individuals who are citizens of Haiti who—
(i)
are not citizens of the United States;
(ii)
have demonstrated respect for democracy and a free-market economy; and
(iii)
have—
(I)
had a successful business career in private equity, banking, or finance in a developing economy; or
(II)
experience comparable to service on the board of directors of a fund that is similar to the Enterprise Fund and which earned a positive return on the amounts under the control of such fund.
(2) Appointments by President
The President shall appoint to the Oversight Panel 2 individuals who are citizens of the United States, who—
(A)
primarily reside in the United States; and
(B)
have demonstrated concern for and commitment to the economic development of Haiti.
(c) Consultations
The Chief Executive Officer and members of the Oversight Panel are encouraged to consult extensively with—
(1)
representatives of similar enterprise funds established by the United States Government, in order to learn best practices relating to the start-up phase and ongoing business of an enterprise fund;
(2)
representatives of multilateral institutions, including the Inter-American Development Bank, the World Bank, and the International Monetary Fund, to coordinate support for infrastructure in Haiti; and
(3)
leaders from the private sector, civil society, labor organizations, human rights groups, academia, and environmental organizations in the United States and Haiti.
Sec. 7. Investments for certain programs and projects
(a) Requirements for investments
The Enterprise Fund may only provide investments in programs and projects that—
(1)
promote development of the Haitian private sector, particularly with respect to—
(A)
micro, small, and medium businesses;
(B)
the agriculture, biodiversity, construction, energy, finance, manufacturing, and tourism industries; and
(C)
joint ventures between the United States and Haiti or the Haitian-American diaspora, including joint ventures that empower women and youth;
(2)
promote policies and practices that facilitate the development of the Haitian private sector through—
(A)
equity investments;
(B)
feasibility studies;
(C)
grants;
(D)
guarantees;
(E)
insurance;
(F)
loans;
(G)
technical assistance; and
(H)
training;
(3)
facilitate an economic environment conducive for an accountable, transparent, and sustained democratic system of governance in Haiti, aligned with the Global Fragility Strategy required in section 504(a) of the Global Fragility Act of 2019 (22 U.S.C. 9803(a));
(4)
build the resilient physical infrastructure required for Haiti to be stable and prosperous, including—
(A)
country-wide access to reliable electricity;
(B)
electricity generation plants;
(C)
passable roads and bridges;
(D)
ports;
(E)
railroads;
(F)
hydrological dams;
(G)
agriculture canals;
(H)
storm water management systems;
(I)
water infrastructure; and
(J)
sanitation and health programs and infrastructure;
(5)
create a report that includes—
(A)
the cost to update the physical infrastructure described in paragraph (4) in Haiti to meet resilience standards; and
(B)
an analysis of completed physical infrastructure projects;
(6)
assist in leveraging public and private funding to address development needs in Haiti; or
(7)
engender conditions for development and industrialization, create sustainable jobs, or reduce the root cause of irregular migrations in Haiti.
(b) Authorized activities
The Enterprise Fund may make investments in and encourage—
(1)
increased access to consumer credit in Haiti, including from consumer credit unions (also known as caisse populaires
);
(2)
the establishment of local agriculture cooperatives in Haiti;
(3)
the establishment of major electricity generation facilities and complementary regional and national electricity grids in Haiti;
(4)
the establishment of working global manufacturing facilities, including facilities manufacturing—
(A)
food;
(B)
beverages;
(C)
tobacco;
(D)
chemicals;
(E)
pharmaceuticals;
(F)
electronics;
(G)
optical products;
(H)
textiles;
(I)
apparel; and
(J)
leather;
(5)
projects providing modern information technology infrastructure required to deliver and monitor development services to economically vulnerable populations in Haiti; and
(6)
projects providing management and technical capacity training and development to promote private sector development, including training on effective management and governance.
(c) Financial instruments for investment in Haiti
(1) In general
The Enterprise Fund shall, if practicable, establish financial instruments to enable individuals to invest in the Haitian private sector.
(2) Preferred investments
If practicable, the financial instruments established under paragraph (1) shall—
(A)
facilitate investment in projects that support development and humanitarian relief in Haiti; and
(B)
support Haitian businesses and employees.
(d) Investment priority
In making investments under this section, the Enterprise Fund shall give priority to industries identified by the Government of Haiti as priorities for the economic recovery and growth of Haiti.
(e) Matters for consideration
The Enterprise Fund shall take into account—
(1)
internationally recognized human rights, including the rights of workers;
(2)
environmental factors;
(3)
the effect of the activities of the Fund on the economy and labor market of the United States; and
(4)
the likelihood that the activity receiving investments from the Enterprise Fund will be commercially viable.
Sec. 8. Administration of funds
(a) Use of investment returns and payments
The Enterprise Fund may use returns on the investments of the Enterprise Fund and payments to the Enterprise Fund to provide the investments described in section 7, without transferring such returns or payments to the Treasury and without further appropriation by Congress.
(b) Ensuring ability To repay funds
The Chief Executive Officer shall provide investments in a manner that ensures that the Enterprise Fund will be able to repay the Treasury as required by section 11.
(c) Use of United States private venture capital
(1) In general
The Enterprise Fund may conduct public offerings or private placements for the purpose of soliciting and accepting United States venture capital, which may be used, separately or together with funds appropriated to the Enterprise Fund, for any lawful investment purpose that the Chief Executive Officer considers appropriate to carry out this Act.
(2) No private investor oversight
Acceptance of private venture capital does not authorize private investors to have a role in the oversight of the Enterprise Fund.
(3) Distributions
Financial returns on Enterprise Fund investments that include private venture capital may be distributed, at such times and in such amounts as the Chief Executive Officer considers appropriate, to the investors of such capital.
(d) Limitations
(1) Payments to Enterprise Fund personnel
No funds of the Enterprise Fund shall inure to the benefit of any Oversight Panel member, officer, or employee of the Enterprise Fund, except as salary or reasonable compensation for services.
(2) Use of Federal funds for grants
Not more than 20 percent of Federal funds made available to the Enterprise Fund may be used for investments in the form of grants.
(3) Use of appropriated funds for costs and feasibility studies
Not more than 15 percent, in total, of funds appropriated to the Enterprise Fund may be used for operating costs and feasibility studies to assess commercial viability of activities and projects funded by the Enterprise Fund.
Sec. 9. Audits and recordkeeping
(a) Independent private audits
The Chief Executive Officer shall ensure that the Enterprise Fund is audited annually by an independent certified public accountant or independent licensed public accountant certified or licensed by a regulatory authority of a State or political subdivision of a State, in accordance with generally accepted auditing standards.
(b) Government Accountability Office audits
With respect to any year during which the Enterprise Fund is in possession of funds received from the United States Government, the Comptroller General of the United States shall audit the financial transactions of the Enterprise Fund to identify waste, fraud, or abuse, in accordance with such principles and procedures and under such rules and regulations as the Comptroller General may prescribe.
(c) Recordkeeping requirements
The Chief Executive Officer shall ensure that—
(1)
each recipient of funds provided by the Enterprise Fund under section 7 keeps—
(A)
a separate account for such funds;
(B)
such records as may be reasonably necessary to fully disclose—
(i)
the amount of such funds;
(ii)
the total amount of such funds received by such recipient;
(iii)
the total cost of the project or activity for which the Enterprise Fund provided such funds; and
(iv)
the amount of the cost of the project or activity supplied by sources other than the Enterprise Fund; and
(C)
any other records that will facilitate an effective audit; and
(2)
the Chief Executive Officer has access, for the purpose of audit and examination, to any record described in paragraph (1)(B).
Sec. 10. Reports
(a) Public report on Enterprise Fund activities
Not later than 180 days after the establishment of the Enterprise Fund and annually thereafter until the Enterprise Fund terminates, the Chief Executive Officer shall make publicly available on the websites of the Enterprise Fund, the United States International Development Finance Corporation, and the United States Agency for International Development a report describing the funds provided by the Enterprise Fund for activities and projects described in section 7, with a written explanation of the commercial viability of each such activity and project.
(b) Report to Congress on Enterprise Fund activities
(1) In general
Not later than 120 days after the end of the fiscal year during which the Enterprise Fund is established and annually thereafter until the Enterprise Fund terminates, the Chief Executive Officer shall submit to the appropriate congressional committees a report that—
(A)
describes the successes, failures, expenses, activities, funding, and forecasted projections of the Enterprise Fund; and
(B)
includes the results of the audit required by section 9(a).
(2) Appropriate congressional committees defined
In this section, the term appropriate congressional committees means—
(A)
the Committee on Appropriations, the Committee on Financial Services, and the Committee on Foreign Affairs of the House of Representatives; and
(B)
the Committee on Appropriations and the Committee on Foreign Relations of the Senate.
(c) Report on Oversight Panel duties
Not later than 180 days after the date of the enactment of this Act and annually thereafter until the Enterprise Fund terminates, the Oversight Panel shall submit to Congress and the President a report on the implementation of the duties of the Oversight Panel during the preceding year, including a description of successes regarding implementation of the Enterprise Fund and challenges preventing the Enterprise Fund from meeting its full potential.
(d) Report after failure To repay
Not later than 120 days after the last day of any year in which the repayment to the Treasury required by section 11 has not yet been completed, the Chief Executive Officer shall make publicly available a report that includes a comprehensive and detailed description of the operations, activities, financial condition, and accomplishments of the Enterprise Fund during such year.
Sec. 11. Termination
Not later than December 31, 2031—
(1)
the Chief Executive Officer shall repay from the Enterprise Fund to the Treasury the full amount of funds the Enterprise Fund received from the United States Government; and
(2)
the Enterprise Fund shall terminate.
Sec. 12. Nonapplicability of other laws
Notwithstanding any other provision of law, executive branch agencies may conduct programs and activities and provide services in support of the activities of the Enterprise Fund.
Sec. 13. Authorization of appropriations
There are authorized to be appropriated to carry out this Act $1,000,000,000 for each of fiscal years 2026 through 2031, which shall be authorized to remain available until expended or until the Enterprise Fund terminates, whichever occurs first.