BINSA Act
- Bill Number
- S. 5316
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 2
- Policy Area
- Armed Forces and National Security
- Status
- Introduced
- Latest Action
- 2026-08-06: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2026-08-25T21:59:42Z
AI-Generated Summary
Purpose of the Legislation This bill amends title VIII of the Defense Production Act of 1950 to add biotechnology to the categories of "prohibited technology" and "notifiable technology." The goal is to screen and restrict certain U.S. investments and technology transfers involving biotechnology to address national security risks from foreign entities, particularly those linked to the People's Republic of China.
Key Provisions Outlined
- Findings: Notes China's state-directed efforts to lead in biotechnology, including pharmaceuticals and biologics manufacturing; highlights large licensing deals transferring U.S. innovation capacity to Chinese firms; and references prior laws like the BIOSECURE Act.
- Sense of Congress: States that outbound investment screening should apply consistently to biotechnology to avoid creating strategic dependencies similar to those in semiconductors or rare earth elements.
- Amendments to Section 809:
- Adds licensing of prohibited technology to covered foreign persons as a prohibited transaction.
- Defines "biotechnology" for both prohibited and notifiable categories to include research, development, manufacturing, or commercialization of pharmaceutical products, biological products, and therapeutic compounds (such as drug discovery platforms, clinical research capabilities, and biologics manufacturing).
- Rulemaking: Requires the Secretary of the Treasury to issue rules within one year, after consulting with the Secretary of Health and Human Services, Secretary of Defense, and Director of National Intelligence; excludes agricultural biotechnology, industrial fermentation, and basic academic research.
- Report: Directs the Secretary of Defense to assess within 60 days how U.S. capital flows into Chinese biotechnology affect national security and military readiness.
Significant Changes to Existing Law Introduced The bill expands the Defense Production Act's outbound investment framework—previously focused on areas like semiconductors and artificial intelligence—to explicitly cover biotechnology. It broadens prohibited transactions to include licensing agreements and adds detailed definitions of biotechnology that emphasize pharmaceutical and therapeutic applications.
Potential Impacts
- Government Agencies: Increases responsibilities for the Department of the Treasury in rulemaking and oversight; requires a new assessment report from the Department of Defense; involves coordination with Health and Human Services and the intelligence community.
- Citizens and Businesses: May limit U.S. companies' ability to license technology, form joint ventures, or make equity investments in biotechnology with certain foreign partners, potentially affecting innovation and revenue in the pharmaceutical sector.
- International Relations: Could strain economic ties with China by restricting technology and capital flows in a key industry, while aligning with existing national security reviews.
Main Stakeholders Affected
- U.S. pharmaceutical and biotechnology companies engaging in cross-border deals.
- Chinese biotechnology firms and related entities.
- Federal agencies including the Treasury Department, Department of Defense, Department of Health and Human Services, and intelligence community.
- Congressional committees on armed services, banking, intelligence, and strategic competition with China.
Notable Legal, Constitutional, or Political Implications The legislation builds on existing national security authorities under the Defense Production Act without creating new constitutional questions in the bill itself. It emphasizes civil-military dual-use risks in biotechnology and may lead to expanded regulatory oversight of private-sector transactions, with potential effects on intellectual property flows and supply chain dependencies.
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
- 2026-08-06: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2026-08-06: Introduced in Senate
Bill Versions
- Biotech Investment National Security Act of 2026 — issued 2026-08-06 — PDF (8 pages)