Image Credit: Shutterstock
Key Takeaways
- Scott and Hagerty’s bill would let Commerce block transactions tied to entities controlled by foreign adversary nations, including China, Russia, Iran, and North Korea.
- The bill would create a new Commerce Department position to oversee the authority.
- Limited time before midterm recess means the bill may need to attach to a must-pass measure to advance.
Republican Senators Tim Scott and Bill Hagerty introduced legislation Tuesday that would give the U.S. Commerce Department expanded authority to block foreign adversary nations from accessing American artificial intelligence technology and supply chains.
Bill Targets Foreign Adversary Supply Chains
The legislation would authorize Commerce to block transactions involving technology designed, developed, manufactured, or supplied by persons owned, controlled, or directed by foreign adversary countries. Foreign adversaries under U.S. policy currently include China, Russia, Iran and North Korea, nations determined to be actively working against U.S. national security interests.
Scott chairs the Senate Banking Committee. He and Hagerty previously worked together to pass the Guiding and Establishing National Innovation for U.S. Stablecoins Act, the crypto industry’s signature legislative win from the prior session.
Narrow Window Before Midterm Recess
The bill arrives as this session of Congress moves toward its summer break and the midterm elections, limiting the time available to advance it on its own. Given the limited time remaining, the bill may need to attach to a must-pass piece of legislation to advance, rather than pass as a standalone measure.
Scott framed the bill around protecting everyday technology from foreign exploitation, saying, “Americans should not have to worry that China or Russia can use the technology in our cars, phones, or networks against us.”
New Commerce Department Position Would Oversee Authority
The legislation would codify a position within Commerce, the assistant secretary of commerce for information and communications technology supply chains, to oversee the new authority.
The bill also includes language intended to preserve public access to open-source AI software, distinguishing its supply-chain restrictions from broader limits on AI development. China’s AI sector has grown rapidly in recent years, while U.S.-Russia tensions have centered more on cybersecurity.
Follows Trump Executive Order on AI Innovation
The bill follows an executive order President Donald Trump issued earlier this month aimed at promoting U.S. AI innovation. That order stated an intent to protect American ingenuity and intellectual property from exploitation and theft by adversaries, language similar in focus to the Scott-Hagerty bill’s supply-chain provisions.
Neither senator’s office detailed a timeline for committee consideration or a possible vehicle bill the legislation could be attached to.
