SCALE Act

Bill Number

H.R. 8306

Origin Chamber

House

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-04-15: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Intelligence (Permanent Select), 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.

Last Updated

2026-04-21T06:08:28Z

AI-Generated Summary

Purpose

The SCALE Act (Semiconductor Controls Adjusted to Limit Exports Act) aims to maintain U.S. leadership in artificial intelligence (AI) by establishing a yearly process to control exports of advanced AI hardware—such as high-performance integrated circuits or chips—to countries and entities viewed as national security risks. It seeks to prevent these adversaries from building their own AI capabilities that could match U.S. levels, while promoting U.S. and allied supply chains.

Key Provisions

• Performance Metrics: Within 180 days of enactment, the Secretary of Commerce (with input from the Director of National Intelligence) must create and publicly release metrics to measure AI hardware capabilities in "entities of concern" (e.g., companies tied to adversarial countries). Metrics cover total processing power, interconnect bandwidth, and memory capacity. A classified version goes to Congress.
• Annual Assessments and Reports: Every 90 days after metric updates, a report assesses AI hardware in "countries of concern" (e.g., China, Russia, Iran, North Korea, Cuba) and entities of concern, including production, imports, ownership, and remote access. It compares adversary totals to U.S. levels.
• Export Controls:
• Sets an annual "upper limit" on exports to entities of concern, using a "policy of denial" for licenses if limits are exceeded.
• Limits are based on adversaries' indigenous (locally made) production; if no qualifying local production exists, all exports are denied.
• Presumption of denial if exports would let adversaries exceed 5% of U.S. AI hardware capacity.
• Licenses reviewed outside denial policy require applicant certifications (e.g., no U.S. order delays, end-use checks, third-party testing).
• Updates and Oversight: Metrics can be adjusted after 24 months with 90-day notice to Congress; changes blocked if committees object. Limits cannot decrease without justification.
• Definitions: Key terms include "AI hardware" (specific high-tech chips under export rules), "remote access" (network use posing security risks), and lists of countries/entities of concern.

Significant Changes to Existing Law

• Introduces a rolling annual standard tied to adversaries' production capabilities, replacing static controls with dynamic, data-driven limits under the Export Control Reform Act and Commerce Department regulations.
• Mandates denial policies and strict thresholds (e.g., 5% cap, 110% of adversary tech ceiling), while prohibiting automatic approvals or reductions.
• Adds requirements for certifications, third-party testing, and tracking remote access/model weights for AI services.

Potential Impacts

• Government Agencies: Commerce and National Intelligence must coordinate metrics, assessments, and licensing; increased reporting to congressional committees (e.g., Foreign Affairs, Intelligence).
• U.S. Businesses: Semiconductor firms face tighter export restrictions to adversaries, potentially limiting sales but ensuring U.S. supply priority; requires compliance certifications.
• Citizens: Indirect benefits via enhanced national security from curbing adversary AI advances; no direct effects.
• International Relations: Strengthens U.S. alliances by aligning export controls; pressures countries of concern by crowding out their markets and limiting tech access, risking trade tensions (e.g., with China).

Main Stakeholders Affected

• U.S. Government: Secretary of Commerce, Director of National Intelligence, congressional committees.
• U.S. Companies: Designers/manufacturers of AI hardware (e.g., chipmakers like NVIDIA), subject to licensing hurdles.
• Adversaries: Entities/companies in countries of concern (e.g., Chinese AI firms), facing export bans or caps.
• Allies/Partners: Benefit from coordinated restrictions to prevent "backfill" (allies filling U.S. gaps).

Notable Legal, Constitutional, or Political Implications

• Legal: Builds on existing export control laws (e.g., Commerce Control List); emphasizes national security without mandating sales, avoiding commerce clause issues.
• Constitutional: Supports executive foreign affairs powers and congressional oversight via reporting/objection rights.
• Political: Promotes bipartisan national security goals (e.g., countering China); could spark debates on trade vs. security, business stability, and global AI leadership. No directive to loosen controls, preserving flexibility.

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]

Recent Actions

• 2026-04-15: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Intelligence (Permanent Select), 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.
• 2026-04-15: Referred to the Committee on Foreign Affairs, and in addition to the Committee on Intelligence (Permanent Select), 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.
• 2026-04-15: Introduced in House
• 2026-04-15: Introduced in House

Bill Versions

• Semiconductor Controls Adjusted to Limit Exports Act — issued 2026-04-15 — PDF (16 pages)