Information and Communications Technology and Services National Security Review Act
- Bill Number
- S. 2041
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2025-06-11: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-12-05T22:06:29Z
AI-Generated Summary
Purpose The legislation establishes a statutory framework within the Department of Commerce to review, mitigate, or prohibit certain information and communications technology and services (ICTS) transactions that may pose national security risks, particularly those involving entities or jurisdictions of concern. It codifies and expands authorities previously exercised under Executive Orders 13873 and 14034.
Key Provisions
- Office Establishment: Creates the Office of Information and Communications Technology and Services within the Bureau of Industry and Security, led by an Executive Director appointed by the Secretary of Commerce.
- Definitions: Defines key terms including "covered transaction" (involving ICTS from jurisdictions of concern or Commerce Control List items), "entity of concern," "jurisdiction of concern" (People's Republic of China, Russian Federation, Islamic Republic of Iran, Democratic People's Republic of Korea), "undue risk," and "critical infrastructure."
- Transaction Review Process: Authorizes the Secretary to review covered transactions suspected of posing undue risk, require information from parties, conduct investigations, and either mitigate risks through agreements or conditions or prohibit the transaction.
- Regulatory Authority: Permits the Secretary to issue regulations for classes of transactions, including prohibitions or mitigation measures related to entities or jurisdictions of concern, with procedures for licensing or authorization.
- Risk Assessments: Requires the Director of National Intelligence to provide annual risk assessments on threats from supply chains involving entities or jurisdictions of concern, with unclassified versions submitted to relevant congressional committees.
- Enforcement and Penalties: Grants investigative and enforcement powers, including subpoenas and seizures; imposes criminal penalties (up to $1,000,000 fine and 20 years imprisonment) and civil penalties (minimum $250,000 or twice the transaction value) for violations.
- Judicial Review: Limits challenges to the U.S. Court of Appeals for the District of Columbia Circuit, with provisions for in camera and ex parte review of sensitive information.
- Other Authorities: Establishes a technical advisory committee, maintains existing regulations from prior executive orders, and includes confidentiality protections.
Significant Changes to Existing Law
- Adds Part IV to the Export Control Reform Act of 2018, creating a dedicated statutory process for ICTS national security reviews.
- Introduces new definitions and authorities not previously codified, including specific criteria for "undue risk" and expanded regulatory powers over classes of transactions.
- Amends sections on definitions, annual reports, and assistant secretaries to integrate the new Office and its functions.
- Provides a Paperwork Reduction Act exception for implementation actions.
Potential Impacts
- Government Agencies: Enhances the Department of Commerce's role in export controls and national security reviews; requires coordination with the Director of National Intelligence and other agencies for investigations and risk assessments.
- Citizens and Businesses: Affects U.S. persons and entities involved in ICTS transactions by subjecting them to reviews, mitigation requirements, or prohibitions; may influence supply chain decisions and compliance costs.
- International Relations: Targets transactions linked to specified foreign jurisdictions, potentially restricting technology flows from or involving those countries while allowing licensing exceptions.
Main Stakeholders Affected
- Department of Commerce (Bureau of Industry and Security and new Office).
- Director of National Intelligence and intelligence community.
- U.S. companies and industry participants in ICTS supply chains.
- Entities and jurisdictions of concern (China, Russia, Iran, North Korea).
- Relevant congressional committees (Senate Banking, Housing, and Urban Affairs; House Foreign Affairs).
- Private sector and academic experts serving on the technical advisory committee.
Notable Legal, Constitutional, or Political Implications
- Establishes exclusive judicial review in the D.C. Circuit with strict limits on disclosure of classified, law enforcement, or sensitive information.
- Creates a statute of limitations of 180 days for challenges to determinations.
- Preserves authorities under other laws, including the Committee on Foreign Investment in the United States process, without alteration.
- Includes special hiring authority for the Office and exemptions from certain administrative requirements.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2025-06-11: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-06-11: Introduced in Senate
Bill Versions
- Information and Communications Technology and Services National Security Review Act — issued 2025-06-11 — PDF (27 pages)