The "Southern Mongolian Human Rights Policy Act" seeks to address the systematic human rights abuses and cultural suppression faced by Southern Mongolians in the People's Republic of China. The bill highlights policies that replace Mongolian language instruction with Chinese, suppress Mongolian identity through "patriotic education," and restrict traditional practices like pastoralism and religious observances. These actions, including mass arrests, detentions, and transnational repression, are seen as a deliberate effort to erase distinct Mongolian culture and Sinicize the population. United States policy aims to support the fundamental freedoms of Southern Mongolians, including expression, peaceful assembly, and religion or belief, while condemning arbitrary detention and discrimination. Congress expresses its support for their aspirations to safeguard their cultural and linguistic heritage and traditional way of life, urging the President to condemn abuses and call for the exercise of promised autonomy. The Secretary of State is directed to work with allies and multilateral institutions, including the United Nations Human Rights Council, to advocate for these rights and promote their language and religious freedom. Key provisions include the potential establishment of an Inner Mongolia team within the U.S. Embassy in Beijing to monitor developments and report on human rights, with consideration for hiring Southern Mongolians as staff. The bill mandates annual reports identifying foreign persons responsible for gross human rights violations against Southern Mongolians, with recommendations for imposing sanctions under existing authorities. Furthermore, it directs the Voice of America to establish a Mongolian language service for broadcasts to the region, authorizing appropriations for this purpose. The legislation also encourages the Smithsonian Institution to fund activities preserving endangered cultures, including Southern Mongolians, Tibetans, Uyghurs, and Hong Kongers, and proposes a grant program through the Institute for Museum and Library Sciences to support diaspora communities' cultural heritage efforts. Finally, it declares U.S. policy to support Southern Mongolians' right to make autonomous decisions regarding economic development, including traditional livelihoods and environmental sustainability, and instructs the Treasury to guide international financial institutions to support appropriate projects.