GAIN AI Act of 2025

Bill Number

H.R. 5885

Origin Chamber

House

Congress

119th Congress, Session 1

Policy Area

Foreign Trade and International Finance

Status

Introduced

Latest Action

2025-10-31: Referred to the House Committee on Foreign Affairs.

Last Updated

2025-12-09T20:02:41Z

AI-Generated Summary

Purpose of the Legislation

The GAIN AI Act of 2025 aims to ensure that U.S. companies and individuals (referred to as "United States persons") have priority access to advanced artificial intelligence (AI) chips before these chips are exported to countries considered national security risks, such as China. This helps maintain U.S. leadership in AI technology while controlling sensitive exports.

Key Provisions

• License Requirement for Exports: The Under Secretary of Commerce for Industry and Security (part of the Bureau of Industry and Security, or BIS) must require a license for exporting, re-exporting, or transferring "covered advanced circuits or products" (high-performance chips or products containing them, designed for data centers) to entities located in, headquartered in, or controlled by parent companies in a "country of concern" (e.g., China, including Hong Kong and Macau, or other restricted nations listed in U.S. export regulations).

• Certification for Priority Access: License applicants must certify that they offered U.S. persons a "right of first refusal." This means:
• Publicly notifying potential U.S. buyers for at least 15 days about the opportunity to purchase the chips on the same terms offered to foreign buyers.
• Giving preference to U.S. buyers who inquire and take concrete steps (e.g., agreeing to buy and starting the purchase process within 15 business days).
• Ensuring no existing backlog of U.S. orders for these or similar chips, and no foreseeable reduction in U.S. production capacity or favoritism in pricing/terms for non-U.S. buyers.
• Licenses are denied if this certification is missing or inaccurate.

• Implementation Regulations: Within 120 days of enactment, BIS must consult the public and issue rules covering:
• How to provide public notice and allow U.S. persons to exercise the right of first refusal.
• Procedures for handling requests, including timelines and what counts as "good faith" efforts.
• Recordkeeping, penalties for false statements (e.g., fines or license revocations), and guidance on backlogs or production impacts.
• No federal authority to choose between competing U.S. buyers; it's first-come, first-served.

• Exemption for Trusted U.S. Persons: No license is needed under certain existing export rules if the chips are sent to non-concern countries and remain owned/controlled by a "trusted United States person." To qualify:
• The U.S. entity must meet standards like strong physical/cybersecurity to prevent unauthorized transfers, limit overseas processing power transfers, cap ownership by concern-country entities at 10%, and undergo annual audits.
• BIS will define the approval process via regulations within 120 days.

• Definitions:
• Advanced Integrated Circuit: High-performance chips classified under specific U.S. export codes (e.g., ECCN 3A090 or 4A090) or meeting thresholds like 4,800+ total processing performance units or 1,400+ gigabytes per second bandwidth. BIS can update these parameters after 24 months via public notice.
• Right of First Refusal: A structured opportunity for U.S. buyers to match foreign offers without backlogs or discriminatory terms.
• Excludes chips not designed for data centers (e.g., consumer devices).

Significant Changes to Existing Law

• Amends the Export Control Reform Act of 2018 by adding a new section (1758A), introducing mandatory licenses and certifications specifically for advanced AI chips to countries of concern—expanding beyond current general export controls.
• Creates a new "right of first refusal" mechanism, prioritizing domestic access over foreign sales, which was not explicitly required before.
• Adds exemptions for trusted U.S. entities, streamlining exports to allies while tightening rules for risky destinations.
• Authorizes BIS to evolve technical definitions over time, making controls more adaptive to AI advancements.

Potential Impacts

• Government Agencies: BIS will face increased workload for licensing, certifications, public consultations, and rulemaking, potentially requiring more resources for enforcement and audits to prevent violations.
• Citizens and U.S. Businesses: U.S. companies (especially in AI, tech, and data centers) gain better access to scarce advanced chips, reducing shortages and supporting innovation/domestic production. However, it may raise costs or delays if supply chains adjust.
• International Relations: Strengthens U.S. export restrictions on sensitive tech to nations like China, potentially escalating trade tensions or technology rivalries, but fostering alliances with non-concern countries by easing exports to trusted partners.

Main Stakeholders Affected

• U.S. Chip Manufacturers and Exporters: Must comply with certifications, notices, and potential delays in foreign sales, but benefit from clearer rules for domestic prioritization.
• U.S. Tech Companies and Innovators: Primary beneficiaries, as they get first dibs on chips critical for AI development, enhancing competitiveness.
• Entities in Countries of Concern: Face barriers to acquiring advanced chips, limiting their AI capabilities and possibly prompting alternative sourcing or retaliation.
• Department of Commerce (BIS): Responsible for oversight, licensing, and enforcement, influencing global tech flows.
• Investors and Supply Chain Partners: Affected by requirements on ownership limits and production backlogs, impacting international investments.

Notable Legal, Constitutional, or Political Implications

• Legal: Bolsters U.S. export control enforcement with new penalties for misrepresentations (e.g., hiding backlogs), ensuring accountability. The adaptive definition of "advanced" chips allows flexibility but requires transparent rulemaking to avoid challenges under administrative law.
• Constitutional: No direct issues identified; it aligns with Congress's authority over foreign commerce and national security under Article I, without infringing on free speech or due process, as procedures include public input.
• Political: Bipartisan sponsorship (Republicans and Democrats) signals broad support for protecting U.S. AI dominance amid global competition. It could influence trade negotiations and tech policy, emphasizing national security over free trade, but risks criticism for protectionism if it disrupts global supply chains.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Moolenaar, John R. [R-MI-2]

Cosponsors (4)

Rep. Krishnamoorthi, Raja [D-IL-8], Rep. Moran, Nathaniel [R-TX-1], Rep. Gottheimer, Josh [D-NJ-5], Rep. Crawford, Eric A. "Rick" [R-AR-1]

Recent Actions

• 2025-10-31: Referred to the House Committee on Foreign Affairs.
• 2025-10-31: Introduced in House
• 2025-10-31: Introduced in House

Bill Versions

• Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2025 — issued 2025-10-31 — PDF (14 pages)