BINSA Act
- Bill Number
- H.R. 9102
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Science, Technology, Communications
- Status
- Introduced
- Latest Action
- 2026-06-02: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-29T05:37:03Z
AI-Generated Summary
Purpose This legislation aims to strengthen U.S. national security by expanding outbound investment screening under the Defense Production Act of 1950 to cover biotechnology. It seeks to limit U.S. capital, licensing, and technology transfers that could help China dominate pharmaceutical development and create long-term U.S. dependency risks in a sector with civil-military applications.
Key Provisions
- Adds biotechnology to the definitions of both prohibited technology and notifiable technology. Biotechnology is defined to include research, development, manufacturing, and commercialization of pharmaceutical products (drugs), biological products, and therapeutic compounds, along with related drug discovery platforms, clinical research capabilities, biologics manufacturing, and intellectual property.
- Expands the list of covered transactions to include licensing a prohibited technology from a covered foreign person.
- Requires the Secretary of the Treasury to issue rules within one year defining the exact scope of biotechnology, after consulting the Secretaries of Health and Human Services and Defense plus the Director of National Intelligence. The rules must prioritize licensing deals, joint ventures, and equity investments in drug discovery and manufacturing while excluding agricultural biotech or basic academic research.
- Directs the Secretary of Defense to submit a report within 60 days assessing how U.S. capital flows into China’s biotechnology sector affect national security and military readiness.
Significant Changes to Existing Law The bill amends section 809 of the Defense Production Act of 1950 by inserting biotechnology into the existing frameworks for prohibited and notifiable technologies. It also adds a new category of covered transaction involving licensing. These changes extend the current outbound investment review process—previously focused on sectors like semiconductors and artificial intelligence—to the biotechnology sector.
Potential Impacts
- Government agencies: The Department of the Treasury gains new rulemaking authority and must coordinate with the Departments of Defense and Health and Human Services plus the intelligence community. The Department of Defense must produce a national security assessment.
- Citizens and businesses: U.S. pharmaceutical and biotechnology companies may face new restrictions or notification requirements on investments, joint ventures, and licensing agreements with Chinese entities.
- International relations: The measure could limit certain U.S.-China business transactions in life sciences, potentially affecting global pharmaceutical supply chains and increasing tensions with the People’s Republic of China.
Main Stakeholders Affected
- U.S. pharmaceutical and biotechnology firms engaged in research, licensing, or manufacturing.
- Chinese biotechnology companies seeking U.S. capital or technology.
- Federal agencies including the Treasury Department, Defense Department, and intelligence community.
- Congressional committees with jurisdiction over armed services, financial services, and intelligence.
Notable Legal, Constitutional, or Political Implications The legislation applies existing national security authorities under the Defense Production Act to a new sector without altering the underlying constitutional framework for such reviews. It reflects a bipartisan approach (introduced by Representatives Moolenaar and Dingell) and builds on prior measures like the BIOSECURE Act by treating biotechnology as a strategic vulnerability comparable to semiconductors. Implementation will depend on future Treasury regulations that must balance security concerns with commercial activity.
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 (1)
Recent Actions
- 2026-06-02: Referred to the House Committee on Financial Services.
- 2026-06-02: Introduced in House
- 2026-06-02: Introduced in House
Bill Versions
- Biotech Investment National Security Act of 2026 — issued 2026-06-02 — PDF (8 pages)