Federal Acquisition Security Council Improvement Act of 2026
- Bill Number
- H.R. 7274
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-02-04: Ordered to be Reported (Amended) by the Yeas and Nays: 40 - 1.
- Last Updated
- 2026-06-27T00:33:56Z
AI-Generated Summary
Purpose of the Legislation
The Federal Acquisition Security Council Improvement Act of 2026 aims to strengthen the Federal Acquisition Security Council (FASC), a body that identifies and addresses security risks in federal government purchases of technology and related items. It focuses on protecting against threats from foreign adversaries (countries or entities posing national security risks) by improving the council's structure, decision-making processes, and coordination with other laws.
Key Provisions
- Definitions and Scope: Introduces terms like "source of concern" (entities controlled by or affiliated with foreign adversaries, such as their governments, militaries, or intelligence agencies), "covered source of concern" (specifically designated by law for heightened scrutiny), "recommended order" (non-binding suggestions for excluding risky suppliers), and "designated order" (mandatory directives for exclusion or removal).
- Council Structure and Membership:
- Moves the council's oversight to the Executive Office of the President.
- Specifies members, including high-level officials (e.g., Assistant Secretaries) from agencies like the Office of the Director of National Intelligence, Department of Defense (DoD), Department of Homeland Security (DHS, including Cybersecurity and Infrastructure Security Agency), Department of Justice (including FBI), Department of Commerce, and others.
- Requires the President to designate the chairperson.
- Mandates semiannual meetings between the chairperson and key leaders (Secretary of Homeland Security, Secretary of Defense, Director of National Intelligence) or their delegates.
- Functions and Support:
- Expands the council's duties to include prioritizing risks, evaluating sources for orders, monitoring compliance by top officials, and reporting annually to Congress on risks from concerning sources.
- Establishes a dedicated Federal Acquisition Security Council Program Office within the Executive Office of the President to provide administrative, legal, policy support, and expertise on technology and supply chain risks. This office can use shared staff from intelligence or federal agencies without extra costs.
- Orders and Processes:
- Recommended Orders: The council can suggest exclusions or removals of risky items from federal contracts or systems; officials (DHS for civilian agencies, DoD for defense, DNI for intelligence) must issue or justify rejection within 90 days.
- Designated Orders: For covered sources, the council must issue exclusion/removal orders within 270 days (or explain to Congress why not). These apply to direct risks and secondary suppliers using covered sources. Orders include risk assessments, implementation steps, and possible mitigation options.
- Allows limited waivers (up to 365 days, renewable for 180 days) for national security reasons, with reporting to Congress. Permanent waivers possible for certain intelligence activities.
- Effective dates for orders cannot exceed 365 days; rescissions only by the council.
- Pre-issuance notices allow affected parties to respond; information is protected from public disclosure (including under the Freedom of Information Act) until orders are final.
- Strategic and Agency Requirements:
- Updates the council's strategic plan (initially from 2018) to address acquisition security risks periodically.
- Requires federal agencies to share information with the council and comply with risk management in purchases.
- Coordination and Updates:
- Ensures alignment with existing laws banning certain foreign tech (e.g., from Huawei or specific drones).
- Mandates regulation updates within two years.
- Adjusts judicial review processes for challenges to orders, limiting court access to specific records.
Significant Changes to Existing Law
- Enhanced Authority and Timelines: Shifts from advisory "recommendations" to mandatory "designated orders" for statutorily flagged threats, with strict deadlines (e.g., 270 days for evaluation, 90 days for issuance), replacing looser processes under current Section 1323 of title 41, U.S. Code.
- Structural Shifts: Relocates support from broad executive branch to a dedicated office in the Executive Office of the President; expands membership for better expertise while adding flexibility for ad-hoc participants.
- Risk Focus Expansion: Broadens from "supply chain risk" to "acquisition security and supply chain risk," covering not just procurement but also use of items in government systems.
- Reporting and Oversight: Adds annual congressional reports and compliance monitoring; ties into prior laws (e.g., National Defense Authorization Acts) by reallocating resources.
- Judicial and Disclosure Tweaks: Updates review standards and exempts pre-order data from public access, streamlining national security protections.
Potential Impacts
- Government Agencies: Increases administrative workload for procurement reviews and information sharing, but provides clearer guidelines to exclude risky suppliers, potentially reducing vulnerabilities in federal IT systems. Civilian, defense, and intelligence agencies face mandatory compliance, with possible short-term disruptions from removals.
- Citizens: Enhances national security by limiting foreign adversary influence in government technology (e.g., safer federal networks for services like data protection), though it may indirectly raise costs for taxpayers if alternatives are more expensive.
- International Relations: Could escalate tensions with foreign adversaries (defined via existing defense laws, often including China, Russia, Iran, North Korea) by formalizing exclusions, signaling U.S. commitment to supply chain security and potentially encouraging allies to adopt similar measures.
Main Stakeholders Affected
- Federal Agencies: DoD, DHS, DNI, Department of Justice, Department of Commerce, General Services Administration, and others involved in procurement or national security.
- Private Sector: Technology contractors, suppliers, and vendors (especially those with foreign ties), who may face exclusions, removals, or need to demonstrate non-risky supply chains.
- Congress: Receives annual reports, justifications for non-actions, and waiver notifications, gaining oversight on security risks.
- Intelligence and Security Community: Benefits from coordinated expertise and shared resources for threat assessment.
Notable Legal, Constitutional, or Political Implications
- Legal: Streamlines exclusion processes with FOIA exemptions and limited waivers, reducing litigation risks but potentially limiting transparency; aligns with prior statutes (e.g., drone bans) to avoid overlaps, while updating judicial records for challenges under the Administrative Procedure Act.
- Constitutional: Reinforces executive branch authority in national security (Article II powers) through presidential oversight and delegations, without direct congressional funding mandates, but includes checks via reporting to maintain separation of powers.
- Political: Promotes bipartisan national security priorities (introduced by cross-party sponsors) amid concerns over foreign tech threats; could influence future procurement policies or trade restrictions, emphasizing U.S. self-reliance in critical supply chains.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Rep. Timmons, William R. [R-SC-4]
Cosponsors (3)
Rep. Subramanyam, Suhas [D-VA-10], Rep. Moolenaar, John R. [R-MI-2], Rep. Krishnamoorthi, Raja [D-IL-8]
Recent Actions
- 2026-02-04: Ordered to be Reported (Amended) by the Yeas and Nays: 40 - 1.
- 2026-02-04: Committee Consideration and Mark-up Session Held
- 2026-01-30: Referred to the House Committee on Oversight and Government Reform.
- 2026-01-30: Introduced in House
- 2026-01-30: Introduced in House
Bill Versions
- Federal Acquisition Security Council Improvement Act of 2026 — issued 2026-01-30 — PDF (31 pages)