SEC. 506. AUTHORIZATION OF APPROPRIATIONS FOR THE 
CHIEF ECONOMIST. 
Of the funds authorized to be appropriated to the 
Under Secretary for Economic Affairs under section 503, 
the Chief Economist shall receive the funds necessary to 
fulfill Office functions and the Chief Economist’s respon-
sibilities for fiscal years 2026 and 2027. 
SEC. 507. ASSISTANT SECRETARY FOR COMMERCIAL DI-
PLOMACY. 
(a) ESTABLISHMENT.—There is authorized to be in 
the Department an Assistant Secretary?for Commercial 
Diplomacy who shall be responsible to the Under Sec-
retary for Economic Affairs for matters pertaining to the 
trade and investment promotion and policy, international 
finance and development, transportation affairs, and such 
other related duties as the Secretary may from time to 
time designate. 
(b) RESPONSIBILITIES.—In addition to the respon-
sibilities described under subsection (a), the Assistant Sec-
retary for Commercial Diplomacy shall be responsible for 
leading Department policies and programs, and coordi-
nating with other United States agencies as appropriate, 
for all matters pertaining to the following: 
(1) Trade and investment promotion, such as— 
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(A) assisting and advocating for United 
States businesses and commercial interests 
overseas; 
(B) identifying foreign market opportuni-
ties for United States businesses and helping 
United States firms overcome challenges in for-
eign business climates; 
(C) helping United States companies com-
pete for and win contracts in foreign markets; 
(D) attracting foreign investment into the 
United States by identifying high potential 
businesses in foreign countries; 
(E) ensuring United States private sector 
concerns are integrated into United States for-
eign policy and economic policy; and 
(F) promoting international commercial 
projects that advance the national security in-
terests of the United States, regardless of do-
mestic content thresholds. 
(2) International trade policy, including negoti-
ating and implementing trade agreements, resolving 
trade disputes, bolstering supply chain resilience, 
and protecting intellectual property rights. 
(3) International investment policy, including 
monitoring international investment climates, negoti-
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ating and implementing investment agreements, rep-
resenting the Department in the Committee on For-
eign Investment in the United States, and assisting 
United States companies involved in investment dis-
putes with foreign governments. 
(4) Development finance, including the mobili-
zation of private, bilateral, and multilateral develop-
ment finance for developing countries, particularly 
investments focused on infrastructure projects. 
(5) The negotiation and extension of debt relief 
and sovereign loan guarantees for United States al-
lies and partners. 
(6) The promotion of sound, transparent, and 
stable economic policies overseas. 
(7) Perform such other duties as the Under 
Secretary for Economic Affairs may from time to 
time designate. 
(c) FIRST APPOINTMENT.—On the date of the enact-
ment of this Act, the individual serving before such date 
of enactment as the Assistant Secretary for Economic and 
Business Affairs shall be the Assistant Secretary for Com-
mercial Diplomacy. Any subsequent appointment of an in-
dividual to the position of Assistant Secretary for Com-
mercial Diplomacy shall be subject to the advice and con-
sent of the Senate. 
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SEC. 508. BUREAU OF COMMERCIAL DIPLOMACY. 
(a) ESTABLISHMENT.—The Secretary shall establish 
a Bureau of Commercial Diplomacy which shall perform 
such functions related to trade and investment promotion 
and policy, international finance and development, and 
transportation affairs, as the Under Secretary for Eco-
nomic Affairs may prescribe. 
(b) ASSISTANT SECRETARY.—The Assistant Sec-
retary for Commercial Diplomacy shall be the head of the 
Bureau of Commercial Diplomacy. 
SEC. 510. ENHANCING SUBNATIONAL DIPLOMACY. 
(a) ESTABLISHMENT.—There shall be established in 
the Department an Office of Subnational Diplomacy. The 
Office shall enable the Department’s work with sub-
national governments (state, county, city, and municipal) 
within the United States to improve the ability of sub-
national governments to attract foreign investment, 
counter foreign malign influence within the United States, 
and contribute to the foreign policy priorities of the United 
States. 
(b) COORDINATOR.—The head of the Office shall be 
the Coordinator for Subnational Diplomacy. The head of 
the office shall report through the Assistant Secretary for 
Commercial Diplomacy to the Under Secretary for Eco-
nomic Affairs. 
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(c) RESPONSIBILITIES.—In addition to the respon-
sibilities described under subsection (a), the Coordinator 
for Subnational Diplomacy shall maintain continuous ob-
servation and coordination of all matters pertaining to 
subnational diplomacy and Department engagements with 
subnational governments in the conduct of foreign policy, 
including the following: 
(1) Advising the Under Secretary for Economic 
Affairs on subnational engagements within the 
United States and serve as the principal official on 
such matters within the Department. 
(2) Coordinating the Department’s support for 
local and municipal governments’ engagements with 
foreign governments. 
(3) Advising subnational government officials 
on the potential risks of engagements with countries 
of concern and share best practices to build resil-
ience against foreign political interference and ma-
lign influence. 
(4) Assisting subnational governments in the 
following areas: 
(A) Attracting or bidding to host major 
international events. 
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(B) Tracking foreign direct investment at 
the county and municipal levels to highlight 
trends and opportunities. 
(C) Attracting foreign direct investment 
and other forms of economic cooperation. 
(D) Building the capacity and knowledge 
of subnational government staff who have re-
sponsibility for engaging with foreign countries. 
(E) Advancing sports diplomacy with for-
eign countries and entities. 
(F) Implementing programs to cooperate 
with foreign governments and entities on policy 
priorities or managing shared resources. 
(G) Understanding the local implications 
of 
foreign 
policy 
developments 
or 
policy 
changes. 
(5) Supporting the economic interests of the 
United States through subnational engagements, in 
consultation and coordination with other relevant 
agencies. 
(6) Advising and informing local officials as 
they negotiate agreements and memoranda of under-
standing with foreign governments related to sub-
national engagements and priorities. 
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(7) Coordinating subnational engagements with 
associations of subnational elected leaders, including 
the United States Conference of Mayors, National 
Governors Association, National League of Cities 
and similar associations. 
(8) Performing other such duties as the Assist-
ant Secretary for Commercial Diplomacy and the 
Under Secretary for Economic Affairs may from 
time to time designate. 
SEC. 511. AUTHORIZATION OF APPROPRIATIONS FOR COM-
MERCIAL DIPLOMACY. 
Of the funds authorized to be appropriated to the 
Under Secretary for Economic Affairs under section 503, 
the Assistant Secretary for Commercial Diplomacy shall 
receive the funds necessary to fulfill Bureau functions and 
the Assistant Secretary’s responsibilities for fiscal years 
2026 and 2027. 
SEC. 512. ASSISTANT SECRETARY FOR WATER, ENVIRON-
MENT, AND SPACE AFFAIRS. 
(a) ESTABLISHMENT.—There is authorized to be in 
the Department an Assistant Secretary for Water, Envi-
ronment, and Space Affairs who shall be responsible to 
the Under Secretary for Economic Affairs for matters per-
taining to space, oceans, polar affairs, environmental qual-
ity, freshwater, fisheries, wildlife and wildlife trafficking, 
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conservation, and such other related duties as the Sec-
retary may from time to time designate. 
(b) RESPONSIBILITIES.—In addition to the respon-
sibilities described under subsection (a), the Assistant Sec-
retary for Water, Environment, and Space Affairs shall 
maintain continuous observation and coordination of all 
matters pertaining to oceans, fisheries, natural resource 
conservation, and outer space in the conduct of foreign 
policy, including, as appropriate, the following: 
(1) Developing United States policy on global 
environmental security issues with respect to oceans, 
fisheries, Antarctic region, waste and global pollu-
tion, and natural resource management and con-
servation, including water. 
(2) Representing the Department in bilateral 
and multilateral negotiations involving the law of the 
sea, including freedom of navigation and overflight 
and other lawful uses of the ocean; maritime secu-
rity; United States maritime zones, including the 
United States extended continental shelf; marine 
science; sustainable management and protection of 
marine habitats and resources; marine pollution; and 
maritime claims and boundaries. 
(3) Leading United States engagement on Ant-
arctica and in international oceans agreements and 
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conventions with foreign governments and inter-
national organizations to promote solutions that ad-
vance United States national security, economic, and 
environmental interests. 
(4) Coordinating the development of policies 
and programs to conserve and manage economically 
important ecosystems, including, forests, wetlands, 
drylands, and coral reefs. 
(5) Developing policies and programs to address 
international threats to natural resources including 
but not limited to illicit trade; illegal, unreported 
and unregulated fishing; wildlife trafficking; and ille-
gal logging and associated trade. 
(6) Developing and implementing United States 
foreign policy related to air, water and soil pollution 
and risks to human health and the environment 
caused by the transboundary movement of haz-
ardous chemicals and waste and other forms of pol-
lution to promote environmental security with trade 
partners and in multilateral institutions. 
(7) Representing the Department in bilateral 
and multilateral engagements including organiza-
tions, institutions, and negotiation of international 
agreements on related issues. 
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(8) Developing policies and programs, in coordi-
nation with the National Aeronautics and Space Ad-
ministration, the Department of Commerce, and 
other relevant Federal departments and agencies, as 
appropriate, to support partnerships between the 
United States and international and private industry 
partners in the development of infrastructure and 
policies that expand economic growth in outer space, 
including— 
(A) countering malign efforts by foreign 
adversaries and other actors that threaten 
United States interests in civil and commercial 
space; 
(B) expanding access to foreign markets 
for United States commercial industry, includ-
ing by encouraging reforms that reduce barriers 
to trade and cooperation with United States 
civil and commercial space actors; and 
(C) providing assistance to foreign govern-
ments and organizations, including national, re-
gional, and international institutions, on such 
terms and conditions as the Secretary may de-
termine. 
(9) Leading bilateral and multilateral engage-
ments related to civil and commercial space activi-
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ties, resilient space services, burden sharing, and 
other matters related to international space law and 
diplomacy and other United States international ob-
ligations and commitments. 
(10) In accordance with the National Space 
Policy, leading United States Government engage-
ment with international Global Navigation Satellite 
Systems providers to ensure compatibility and en-
courage interoperability of civil global navigation 
satellite services based on United States-based global 
positioning systems, including through the Inter-
national Committee on Global Navigation Satellite 
Systems. 
(11) Leading Department efforts to implement 
international arrangements and promote cooperation 
on Earth observation satellite systems. 
(12) Leading Department engagement in multi-
lateral and bilateral forums on international space 
policy, space law, and commercial and civil treaties 
or agreements. 
(13) Leading Department efforts on trans-
parency in space by maintaining the official United 
States space object registry and promoting best 
practices for safe operations in space, preservation 
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