Scott, Hagerty Introduce Bill to Secure U.S. Technology Supply Chains from Foreign Adversaries

Washington, D.C. - U.S. Senator Tim Scott (R-S.C.), Chairman of the Senate Banking Committee, and U.S. Senator Bill Hagerty (R-Tenn.) introduced the ICTS Supply Chain Security Act, legislation to codify and strengthen the Commerce Department's ability to protect U.S. information and communications technology supply chains from foreign adversary threats. The bill would codify the Office of Information and Communications Technology and Services within the Bureau of Industry and Security, establish a Senate-confirmed Assistant Secretary to lead the effort, create a clear prohibition on covered transactions involving foreign adversary technology, and include guardrails to protect free speech and open-source software. This legislation follows a recent Senate Banking Committee hearing on AI where senators heard testimony that America must secure the infrastructure powering the AI race. In response, the bill would give Commerce clear, durable authority to keep foreign adversary technology out of the critical systems, hardware, and supply chains that support America's AI future.

"Americans should not have to worry that China or Russia can use the technology in our cars, phones, or networks against us," said Chairman Scott. "President Trump was right to confront this threat. Our bill gives the Commerce Department the tools to keep dangerous foreign technology out of our supply chains while protecting free speech and stopping government overreach."

BACKGROUND:

The Commerce Department's Bureau of Industry and Security is responsible for administering key economic security authorities, including export controls, anti-boycott policy, and the regulation of certain foreign adversary technology in the United States.

In 2019, President Trump issued an executive order providing the Commerce Department with authority to address foreign adversary information and communications technology and services, or ICTS, that pose national security and economic risks. The Commerce Department later established the Office of Information and Communications Technology and Services within BIS to administer the authority.

The ICTS Supply Chain Security Act would:

1. Codify the Office of Information and Communications Technology and Services within BIS;
2. Establish a Senate-confirmed Assistant Secretary of Commerce for Information and Communications Technology Supply Chains;
3. Provide Commerce with authority to prohibit or mitigate ICTS transactions involving technology designed, developed, manufactured, or supplied by persons owned, controlled, or directed by foreign adversary countries;
4. Limit covered countries of concern to China, including Hong Kong and Macau, Russia, Iran, North Korea, and Cuba;
5. Require congressional reporting and preserve access to information for committees of jurisdiction;
6. Provide enforcement authority and penalties for violations;
7. Preserve free speech protections for informational materials, including publications, films, streaming content, podcasts, social media posts, blogs, online news articles, and other electronically distributed media;
8. Protect public access to open-source software; and
9. Ensure the ICTS process does not displace other national security review processes, including the Committee on Foreign Investment in the United States.

ICTS authority has been used to address risks posed by foreign adversary technologies, including Russian cybersecurity products and connected vehicle technologies containing certain Chinese and Russian hardware and software.

Codifying this authority would provide greater certainty, accountability, and oversight while ensuring the United States can respond quickly to emerging threats in critical technology supply chains.

To read the bill text, click here.

To read a section-by-section, click here.