; or (C) is a parent, subsidiary, or affiliate of any entity described in subparagraph (B). (2) Covered public works project The term covered public works project means any project of the construction, repair, renovation, or maintenance of public buildings, structures, sewers, water works, roads, bridges, docks, underpasses and viaducts, as well as any other improvement to be constructed, repaired or renovated or maintained on public property to be paid, in whole or in part, with public funds or with financing to be retired with public funds in the form of lease payments or otherwise. . (b) Clerical amendment The analysis for chapter 33 of title 40, United States Code, is amended by inserting after the item relating to section 3318 the following: 3319. Restriction of entities from using Federal funds to engage, enter into, and award public works contracts. . (c) Non-Federal public works Chapter 35 of title 40, United States Code, is amended by adding at the end the following: 3506. Restriction of States and local governments from using Federal funds to engage, enter into, and award public works contracts (a) In general A State or local government receiving Federal funds may not provide such funds to any covered entity for any covered public works project. (b) Requirements A State or local government shall verify that any entity receiving funds for any covered public works project is free from any obligations, influences, or connections to any covered entity. (c) Exception This section shall only apply to projects that are located in a State. (d) Definitions In this section: (1) Covered entity The term covered entity means any entity that— (A) is headquartered in China