STOP China Act
- Bill Number
- H.R. 4361
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Transportation and Public Works
- Status
- Introduced
- Latest Action
- 2025-07-15: Referred to the Subcommittee on Highways and Transit.
- Last Updated
- 2026-06-11T23:41:31Z
AI-Generated Summary
Purpose of the Legislation
The STOP China Act aims to protect U.S. national security by preventing the use of federal funds to purchase certain vehicles and related technologies produced by entities linked to countries like China, which are seen as posing risks through unfair trade practices and potential security threats. It builds on existing laws to restrict federal support for foreign-dominated supply chains in the transportation sector.
Key Provisions
- Sense of Congress: Declares that China's industrial policies distort markets, create overcapacity, and threaten U.S. security and competitiveness, especially in vehicles. It emphasizes that U.S. taxpayer money should not fund Chinese-subsidized companies and that federally funded entities must avoid procuring risky vehicles or technologies from China-linked sources.
- Definitions (applicable to both main sections):
- Covered nation: Refers to countries like China, as defined in existing defense law (10 U.S.C. § 4872(d)), which identifies nations posing national security risks.
- Covered entity: Broadly includes businesses headquartered in, owned or controlled by, or affiliated with a covered nation (e.g., through majority ownership, board control, or joint ventures).
- Covered vehicle: Transit vehicles (rolling stock, like buses or trains) produced by covered entities or incorporating their electric power trains (the system that powers electric or hybrid vehicles).
- Covered funding: Federal financial assistance for transit programs or other Department of Transportation (DOT) appropriations.
- Prohibitions under Section 3 (amending transit funding laws in 49 U.S.C. § 5323(u)):
- Bans the Secretary of Transportation from awarding or obligating transit funds for contracts to buy covered vehicles or build/charge infrastructure for them (if the vehicle contract is post-enactment).
- Requires the U.S. Trade Representative (USTR), with input from the Attorney General and DOT Secretary, to publish and update (every 90 days initially, then annually) a public list of covered entities producing prohibited vehicles or power trains.
- Allows exceptions for vehicle purchases or infrastructure used in inspections, investigations, or safety research/testing.
- Permits completion of pre-enactment contracts using federal funds until delivery.
- Prohibitions under Section 4 (extending to non-transit DOT funds):
- Applies similar bans to other DOT appropriations (outside transit programs), prohibiting their use for covered vehicles or related bus charging infrastructure.
- Includes the same list publication/update requirements and exceptions as Section 3.
- Severability Clauses: In both sections, if any part is ruled unconstitutional or invalid, the rest remains in effect.
Significant Changes to Existing Law
- Expands the "Buy America" provisions in federal transit law (49 U.S.C. § 5323(u)), which previously restricted funding for steel/aluminum and certain rolling stock from non-U.S. sources, to now explicitly target vehicles and electric power trains from covered nations like China.
- Introduces a dynamic, regularly updated public list of prohibited entities, replacing static or narrower prior restrictions.
- Broadens "covered entity" definitions to include indirect control mechanisms (e.g., proxy voting or informal arrangements), making it harder for China-linked firms to evade bans.
- Adds a grace period for ongoing contracts but eliminates some prior exceptions, tightening rules on subcontracts and infrastructure funding.
Potential Impacts
- On Government Agencies: DOT and transit authorities will face restrictions on using federal funds for foreign vehicles, potentially increasing costs for domestic alternatives and requiring compliance checks against the USTR list. This could slow procurement processes initially.
- On Citizens: Transit users may see shifts toward U.S.-made vehicles, improving long-term supply chain reliability but possibly raising short-term transit costs passed on through fares or taxes. It promotes safer, less vulnerable public transportation systems.
- On International Relations: Heightens U.S.-China tensions by targeting Chinese dominance in electric vehicle tech, signaling a broader decoupling from Chinese supply chains. It may encourage allies to adopt similar measures but could provoke retaliatory trade actions.
Main Stakeholders Affected
- Federal Agencies: DOT (enforcement and exceptions), USTR (list maintenance), Attorney General (consultation on entities).
- Transit Operators and Local Governments: Public transit agencies receiving federal funds, who must avoid prohibited vehicles to maintain eligibility.
- Vehicle Manufacturers and Suppliers: U.S. and allied firms benefit from reduced competition; China-based or linked companies (e.g., BYD or CRRC) face exclusion from federal markets.
- Taxpayers and Consumers: Indirectly affected through funding restrictions that prioritize domestic industry but may increase public spending on alternatives.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens national security-based trade restrictions under existing frameworks like defense authorization acts, with clear definitions to aid enforcement. The severability clause protects the law's core from partial invalidation, e.g., if control definitions are challenged as overbroad.
- Constitutional: Aligns with Congress's spending power to condition federal funds and commerce clause authority over interstate trade, but could face lawsuits over due process if entity listings lack sufficient evidence or appeal processes.
- Political: Reflects bipartisan concerns (introduced by Republicans and Democrats) about China threats, continuing trends in laws like the 2020 National Defense Authorization Act. It may fuel debates on protectionism vs. free trade, influencing future U.S. policy on technology and supply chains.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Crawford, Eric A. "Rick" [R-AR-1]
Cosponsors (3)
Rep. Khanna, Ro [D-CA-17], Rep. Bacon, Don [R-NE-2], Rep. Gimenez, Carlos A. [R-FL-28]
Recent Actions
- 2025-07-15: Referred to the Subcommittee on Highways and Transit.
- 2025-07-14: Referred to the Committee on Transportation and Infrastructure, 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.
- 2025-07-14: Referred to the Committee on Transportation and Infrastructure, 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.
- 2025-07-14: Introduced in House
- 2025-07-14: Introduced in House
Bill Versions
- Safeguarding Transit Operations to Prohibit China Act — issued 2025-07-14 — PDF (13 pages)