A bill to improve transparency with respect to foreign influence on Department of Defense contractors.
- Bill Number
- S. 4648
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-06-01: Read twice and referred to the Committee on Armed Services.
- Last Updated
- 2026-06-10T16:29:11Z
AI-Generated Summary
Summary of S. 4648
Purpose
This legislation aims to enhance transparency about foreign influence on companies that contract with or subcontract for the Department of Defense (DoD) by requiring disclosure of ownership details in contract bids and proposals.
Key Provisions
- Beneficial Owner Disclosure Requirement: Within two years of enactment, the Secretary of Defense must update the Defense Federal Acquisition Regulation Supplement (DFARS) to require prospective DoD contractors and subcontractors to submit information on each beneficial owner (defined as an individual with significant ownership or control) as part of any bid or proposal.
- Amendments to Existing Law: The bill modifies Section 847(a) of the National Defense Authorization Act for Fiscal Year 2020 by:
- Expanding the definition of persons subject to foreign ownership, control, or influence reviews to explicitly include beneficial owners.
- Lowering the contract value threshold triggering certain mitigation requirements from $5,000,000 to $500,000.
Significant Changes to Existing Law
- Introduces a new mandatory disclosure obligation in DFARS for beneficial ownership information, building on prior requirements from the National Defense Authorization Act for Fiscal Year 2018.
- Broadens the scope of individuals covered under foreign influence mitigation rules and reduces the financial threshold for applicability, increasing the number of contracts subject to review.
Potential Impacts
- On Government Agencies: The DoD would face increased administrative workload for collecting, reviewing, and managing ownership data, potentially improving oversight of contractor risks but requiring updates to acquisition processes.
- On Citizens and Businesses: U.S. defense contractors and subcontractors would need to provide detailed ownership information, which could affect bidding processes and raise compliance costs, particularly for smaller entities.
- On International Relations: Greater scrutiny of foreign beneficial owners in the defense supply chain might influence partnerships with international companies or affect foreign investment in U.S. defense-related firms.
Main Stakeholders Affected
- Department of Defense and its acquisition personnel.
- Defense contractors and subcontractors, including their beneficial owners.
- Companies seeking DoD contracts valued above the new lower threshold.
Notable Legal, Constitutional, or Political Implications
- The bill strengthens national security-related transparency measures without altering core constitutional authorities, focusing on regulatory updates to existing acquisition laws.
- It may raise considerations around data privacy for ownership information but operates within established federal contracting frameworks.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (1)
Recent Actions
- 2026-06-01: Read twice and referred to the Committee on Armed Services.
- 2026-06-01: Introduced in Senate
Bill Versions
- To improve transparency with respect to foreign influence on Department of Defense contractors. — issued 2026-06-01 — PDF (2 pages)