‘‘(B) a major disaster declared under sec-
tion 401 of the Robert T. Stafford Disaster Re-
lief and Emergency Assistance Act (42 U.S.C. 
5170). 
‘‘(7) CRITICAL
INFRASTRUCTURE.—The term 
‘critical infrastructure’ means systems and assets, 
whether physical or virtual, so vital to the United 
States that the incapacity or destruction of such sys-
tems and assets would have a debilitating impact on 
national security, national economic security, na-
tional public health or safety, or any combination of 
those matters. 
‘‘(8) ENTITY OF CONCERN.—The term ‘entity 
of concern’ means an entity— 
‘‘(A) the ultimate parent entity of which is 
domiciled in a country of concern; or 
‘‘(B) that is directly or indirectly controlled 
by, owned by, or subject to the influence of a 
foreign person that has a substantial nexus 
with a country of concern. 
‘‘(9) FOREIGN ENTITY.— 
‘‘(A) IN GENERAL.—Except as provided by 
subparagraph (B), the term ‘foreign entity’ 
means any branch, partnership, group or sub- 
group, association, estate, trust, corporation or 
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division of a corporation, or organization orga-
nized under the laws of a foreign country if— 
‘‘(i) its principal place of business is 
outside the United States; or 
‘‘(ii) its equity securities are primarily 
traded on one or more foreign exchanges. 
‘‘(B) EXCEPTION.—The term ‘foreign enti-
ty’ does not include any entity described in sub-
paragraph (A) that can demonstrate that a ma-
jority of the equity interest in such entity is ul-
timately owned by nationals of the United 
States. 
‘‘(10) FOREIGN
PERSON.—The term ‘foreign 
person’ means— 
‘‘(A) any foreign national, foreign govern-
ment, or foreign entity; 
‘‘(B) any entity over which control is exer-
cised or exercisable by a foreign national, for-
eign government, or foreign entity; or 
‘‘(C) any entity over which control is exer-
cised or exercisable by a person described in 
subparagraph (A) or (B). 
‘‘(11) NATIONAL CRITICAL CAPABILITIES.—The 
term ‘national critical capabilities’, subject to regula-
tions prescribed by the Committee— 
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‘‘(A) means systems and assets, whether 
physical or virtual, so vital to the United States 
that the inability to develop such systems and 
assets or the incapacity or destruction of such 
systems or assets would have a debilitating im-
pact on national security or crisis preparedness; 
and 
‘‘(B) includes the following: 
‘‘(i) The production, in sufficient 
quantities, of any of the following articles: 
‘‘(I) Medical supplies, medicines, 
and personal protective equipment. 
‘‘(II) Articles essential to the op-
eration, manufacture, supply, service, 
or maintenance of critical infrastruc-
ture. 
‘‘(III) Articles critical to infra-
structure construction after a natural 
or manmade disaster. 
‘‘(IV) Articles that are compo-
nents of systems critical to the oper-
ation of weapons systems, intelligence 
collection systems, or items critical to 
the conduct of military or intelligence 
operations. 
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‘‘(V) Any other articles identified 
in regulations prescribed under sec-
tion 1007. 
‘‘(ii) Supply chains for the production 
of articles described in clause (i). 
‘‘(iii) Essential supply chains for the 
Department of Defense. 
‘‘(iv) Any other supply chains identi-
fied in regulations prescribed under section 
1007. 
‘‘(v) Services critical to the production 
of articles described in clause (i) or a sup-
ply chain described in clause (ii), (iii), or 
(iv). 
‘‘(vi) Medical services. 
‘‘(vii) Services critical to the mainte-
nance of critical infrastructure. 
‘‘(viii) Services critical to infrastruc-
ture construction after a natural or man-
made disaster. 
‘‘(ix) Any other services identified in 
regulations prescribed under section 1007. 
‘‘(12) NATIONAL
SECURITY.—The term ‘na-
tional security’ includes— 
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‘‘(A) national security, as defined in sec-
tion 721(a) of the Defense Production Act of 
1950 (50 U.S.C. 4565(a)); 
‘‘(B) national defense, as defined in section 
702 of that Act (50 U.S.C. 4552); and 
‘‘(C) agricultural security and natural re-
sources security. 
‘‘(13) PARTY.—The term ‘party’, with respect 
to a transaction, has the meaning given that term in 
regulations prescribed by the Committee. 
‘‘(14) UNITED
STATES.—The term ‘United 
States’ means the several States, the District of Co-
lumbia, and any territory or possession of the 
United States. 
‘‘(15) UNITED
STATES
BUSINESS.—The term 
‘United States business’ means a person engaged in 
interstate commerce in the United States. 
‘‘SEC. 1002. COMMITTEE ON NATIONAL CRITICAL CAPABILI-
TIES. 
‘‘(a) IN GENERAL.—There is established a com-
mittee, to be known as the ‘Committee on National Crit-
ical Capabilities’, which shall carry out this title and such 
other assignments as the President may designate. 
‘‘(b) MEMBERSHIP.— 
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‘‘(1) IN
GENERAL.—The Committee shall be 
comprised of the head, or a designee of the head, of 
each of the following: 
‘‘(A) The Office of the United States 
Trade Representative. 
‘‘(B) The Department of Commerce. 
‘‘(C) The Office of Science and Technology 
Policy. 
‘‘(D) The Department of the Treasury. 
‘‘(E) The Department of Homeland Secu-
rity. 
‘‘(F) The Department of Defense. 
‘‘(G) The Department of State. 
‘‘(H) The Department of Justice. 
‘‘(I) The Department of Energy. 
‘‘(J) The Department of Health and 
Human Services. 
‘‘(K) The Department of Agriculture. 
‘‘(L) The Department of Labor. 
‘‘(M) Any other Federal agency the Presi-
dent determines appropriate, generally or on a 
case-by-case basis. 
‘‘(2) EX OFFICIO MEMBERS.— 
‘‘(A) IN
GENERAL.—In addition to the 
members of the Committee specified in para-
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graph (1), the following shall, except as pro-
vided in subparagraph (B), be nonvoting, ex 
officio members of the Committee: 
‘‘(i) The Director of National Intel-
ligence. 
‘‘(ii) The Administrator of the Fed-
eral Emergency Management Agency. 
‘‘(iii) The Director of the National In-
stitute of Standards and Technology. 
‘‘(iv) The Director of the Centers for 
Disease Control and Prevention. 
‘‘(v) The Director of the National In-
stitute of Allergy and Infectious Diseases. 
‘‘(vi) The Chairperson of the Federal 
Communications Commission. 
‘‘(vii) The Chairperson of the Securi-
ties and Exchange Commission. 
‘‘(viii) The Chairperson of the Com-
modity Futures Trading Commission. 
‘‘(ix) The Administrator of the Fed-
eral Aviation Administration. 
‘‘(B) DESIGNATION
AS
VOTING
MEM-
BERS.—The chairperson of the Committee may 
designate any of the officials specified in 
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clauses (ii) through (ix) of subparagraph (A) as 
voting members of the Committee. 
‘‘(c) CHAIRPERSON.— 
‘‘(1) IN GENERAL.—The United States Trade 
Representative shall serve as the chairperson of the 
Committee. 
‘‘(2) CONSULTATIONS
WITH
SECRETARIES
OF 
DEFENSE AND COMMERCE.—In carrying out the du-
ties of the chairperson of the Committee, the United 
States Trade Representative shall consult with the 
Secretary of Defense and the Secretary of Com-
merce. 
‘‘(d) DESIGNATION OF OFFICIALS TO CARRY OUT 
DUTIES RELATED TO COMMITTEE.—The head of each 
agency represented on the Committee shall designate an 
official, at or equivalent to the level of Assistant Secretary 
in the Department of the Treasury, who is appointed by 
the President, by and with the advice and consent of the 
Senate, to carry out such duties related to the Committee 
as the head of the agency may assign. 
‘‘SEC. 1003. REVIEW OF COVERED TRANSACTIONS. 
‘‘(a) MANDATORY NOTIFICATION.—A United States 
business that engages in a covered transaction shall sub-
mit a written notification of the transaction to the Com-
mittee. 
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‘‘(b) REVIEW.— 
‘‘(1) IN
GENERAL.—Not later than 60 days 
after receiving written notification under subsection 
(a) of a covered transaction, the Committee may— 
‘‘(A) review the transaction to determine if 
the transaction is likely to result in an unac-
ceptable risk to one or more national critical ca-
pabilities, including by considering factors spec-
ified in section 1005; and 
‘‘(B) if the Committee determines under 
subparagraph (A) that the transaction poses a 
risk described in that subparagraph, make rec-
ommendations— 
‘‘(i) to the President for appropriate 
action that may be taken under this title 
or under other existing authorities to ad-
dress or mitigate that risk; and 
‘‘(ii) to Congress for the establish-
ment or expansion of Federal programs to 
support the production or supply of articles 
and 
services 
described 
in 
section 
1001(a)(11)(B) in the United States. 
‘‘(2) UNILATERAL
INITIATION
OF
REVIEW.— 
The Committee may initiate a review under para-
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graph (1) of a covered transaction for which written 
notification is not submitted under subsection (a). 
‘‘(3) INITIATION OF REVIEW BY REQUEST FROM 
CONGRESS.—The Committee shall initiate a review 
under paragraph (1) of a covered transaction if the 
chairperson and the ranking member of one of the 
appropriate congressional committees jointly request 
the Committee to review the transaction. 
‘‘(c) TREATMENT OF BUSINESS CONFIDENTIAL IN-
FORMATION.—A United States business shall submit each 
notification required by subsection (a) to the Committee— 
‘‘(1) in a form that includes business confiden-
tial information; and 
‘‘(2) in a form that omits business confidential 
information and is appropriate for disclosure to the 
public. 
‘‘SEC. 1004. ACTION BY THE PRESIDENT. 
‘‘(a) IN GENERAL.—Subject to subsection (d), the 
President may take such action for such time as the Presi-
dent considers appropriate to address or mitigate any un-
acceptable risk posed by a covered transaction to one or 
more national critical capabilities, including suspending or 
prohibiting the covered transaction. 
‘‘(b) ANNOUNCEMENT
BY
THE PRESIDENT.—The 
President shall announce the decision on whether or not 
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to take action pursuant to subsection (a) with respect to 
a covered transaction not later than 15 days after the date 
on which the review of the transaction under section 1003 
is completed. 
‘‘(c) ENFORCEMENT.—The President may direct the 
Attorney General of the United States to seek appropriate 
relief, including divestment relief, in the district courts of 
the United States, in order to implement and enforce this 
section. 
‘‘(d) FINDINGS OF THE PRESIDENT.—The President 
may exercise the authority conferred by subsection (a) to 
suspend or prohibit a covered transaction only if the Presi-
dent finds that— 
‘‘(1) there is credible evidence that leads the 
President to believe that the transaction poses an 
unacceptable risk to one or more national critical ca-
pabilities; and 
‘‘(2) provisions of law (other than this section) 
do not, in the judgment of the President, provide 
adequate and appropriate authority for the Presi-
dent to protect such capabilities. 
‘‘(e) FACTORS TO BE CONSIDERED.—For purposes 
of determining whether to take action under subsection 
(a), the President shall consider, among other factors, 
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each of the factors described in section 1005, as appro-
priate. 
‘‘SEC. 1005. FACTORS TO BE CONSIDERED. 
‘‘The Committee, in reviewing and making a deter-
mination with respect to a covered transaction under sec-
tion 1003, and the President, in determining whether to 
take action under section 1004 with respect to a covered 
transaction, shall consider any factors relating to national 
critical capabilities that the Committee or the President 
considers relevant, including— 
‘‘(1) the long-term strategic economic, national 
security, and crisis preparedness interests of the 
United States; 
‘‘(2) the history of distortive or predatory trade 
practices in each country in which a foreign person 
that is a party to the transaction is domiciled; 
‘‘(3) control and beneficial ownership (as deter-
mined in accordance with section 847 of the Na-
tional Defense Authorization Act for Fiscal Year 
2020 (Public Law 116–92; 10 U.S.C. 2509 note)) of 
each foreign person that is a party to the trans-
action; and 
‘‘(4) impact on the domestic industry and re-
sulting resiliency, including the domestic skills base, 
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taking into consideration any pattern of foreign in-
vestment in the domestic industry. 
‘‘SEC. 1006. SUPPLY CHAIN SENSITIVITIES. 
‘‘The Committee shall determine the sensitivities and 
risks for sourcing of articles described in section 
1001(a)(11)(B)(i), in accordance with the following: 
‘‘(1) The sourcing of least concern shall be arti-
cles the supply chains for which are housed in whole 
within countries that are allies of the United States. 
‘‘(2) The sourcing of greater concern shall be 
articles the supply chains for which are housed in 
part within countries of concern or from an entity 
of concern but for which substitute production is 
available from elsewhere at required scale. 
‘‘(3) The sourcing of greatest concern shall be 
articles the supply chains for which are housed whol-
ly or in part in countries of concern or from an enti-
ty of concern and for which substitute production is 
unavailable elsewhere at required scale. 
‘‘SEC. 1007. IDENTIFICATION OF ADDITIONAL NATIONAL 
CRITICAL CAPABILITIES. 
‘‘(a) IN GENERAL.—The Committee should prescribe 
regulations to identify additional articles, supply chains, 
and services to recommend for inclusion in the definition 
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of 
‘national 
critical 
capabilities’ 
under 
section 
1001(a)(11). 
‘‘(b) REVIEW OF INDUSTRIES.— 
‘‘(1) IN GENERAL.—In identifying under sub-
section (a) additional articles, supply chains, and 
services to recommend for inclusion in the definition 
of ‘national critical capabilities’ under section 
1001(a)(11), the Committee should conduct a review 
of industries identified by Federal Emergency Man-
agement Agency as carrying out emergency support 
functions, including the following industries: 
‘‘(A) Energy. 
‘‘(B) Medical. 
‘‘(C) Communications, including electronic 
and communications components. 
‘‘(D) Defense. 
‘‘(E) Transportation. 
‘‘(F) Aerospace, including space launch. 
‘‘(G) Robotics. 
‘‘(H) Artificial intelligence. 
‘‘(I) Semiconductors. 
‘‘(J) Shipbuilding. 
‘‘(K) Water, including water purification. 
‘‘(2) QUANTIFICATION.—In conducting a review 
of industries under paragraph (1), the Committee 
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should specify the quantity of articles, supply chains, 
and services, and specific types and examples of 
transactions, from each industry sufficient to main-
tain national critical capabilities. 
‘‘SEC. 1008. REPORTING REQUIREMENTS. 
‘‘(a) ANNUAL REPORT TO CONGRESS.— 
‘‘(1) IN
GENERAL.—Not later than 90 days 
after the date of the enactment of the National Crit-
ical Capabilities Defense Act of 2021, and annually 
thereafter, the Committee shall submit to the appro-
priate congressional committees a report— 
‘‘(A) on the determination under section 
1006 with respect to sensitivities and risks for 
sourcing 
of 
articles 
described 
in 
section 
1001(a)(11)(B)(i); 
‘‘(B) assessing whether identification of 
additional national critical capabilities under 
section 1007 is necessary; and 
‘‘(C) describing, for the year preceding 
submission of the report— 
‘‘(i) the notifications received under 
subsection (a) of section 1003 and reviews 
conducted pursuant to such notifications; 
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‘‘(ii) reviews initiated under para-
graph (2) or (3) of subsection (b) of that 
section; 
‘‘(iii) actions recommended by the 
Committee under subsection (b)(1)(B) of 
that section as a result of such reviews; 
and 
‘‘(iv) reviews during which the Com-
mittee determined no action was required; 
and 
‘‘(D) assessing the overall impact of such 
reviews on national critical capabilities. 
‘‘(2) FORM OF REPORT.—The report required 
by paragraph (1) shall be submitted in unclassified 
form but may include a classified annex. 
‘‘(b) USE OF DEFENSE PRODUCTION ACT OF 1950 
AUTHORITIES.—Not later than 180 days after the date 
of the enactment of the National Critical Capabilities De-
fense Act of 2021, the Committee shall submit to Congress 
a report that includes recommendations relating to use the 
authorities under title III of the Defense Production Act 
of 1950 (50 U.S.C. 4531 et seq.) to make investments 
to enhance national critical capabilities and reduce de-
pendency on materials and services imported from foreign 
countries. 
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‘‘SEC. 1009. REQUIREMENT FOR REGULATIONS. 
‘‘(a) IN GENERAL.—The Committee shall prescribe 
regulations to carry out this title. 
‘‘(b) ELEMENTS.—Regulations prescribed to carry 
out this title shall— 
‘‘(1) provide for the imposition of civil penalties 
for any violation of this title, including any mitiga-
tion agreement entered into, conditions imposed, or 
order issued pursuant to this title; and 
‘‘(2) include specific examples of the types of— 
‘‘(A) the transactions that will be consid-
ered to be covered transactions; and 
‘‘(B) the articles, supply chains, and serv-
ices that will be considered to be national crit-
ical capabilities. 
‘‘(c) COORDINATION.—In prescribing regulations to 
carry out this title, the Committee shall coordinate with 
the United States Trade Representative, the Under Sec-
retary of Commerce for Industry and Security, and the 
Committee on Foreign Investment in the United States 
to avoid duplication of effort. 
‘‘SEC. 1010. REQUIREMENTS RELATED TO GOVERNMENT 
PROCUREMENT. 
‘‘(a) IN GENERAL.—Not later than 90 days after the 
date of the enactment of the National Critical Capabilities 
Defense Act of 2021, the Federal Acquisition Regulation 
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shall be revised to require each person that is a prospective 
contractor for an executive agency to disclose the supply 
chains the person would use to carry out the contract and 
the extent to which the person would depend on articles 
and services imported from foreign countries, including 
the percentage of such materials and services imported 
from countries of concern. 
‘‘(b) MATERIALITY.—The head of an executive agen-
cy shall consider the failure of a person to make the disclo-
sures required by subsection (a) to be material deter-
minants in awarding a contract to that person. 
‘‘(c) APPLICABILITY.—The revisions to the Federal 
Acquisition Regulation required under subsection (a) shall 
apply with respect to contracts for which solicitations are 
issued on or after the date that is 90 days after the date 
of the enactment of the National Critical Capabilities De-
fense Act of 2021. 
‘‘(d) DEFINITIONS.—In this section: 
‘‘(1) EXECUTIVE AGENCY.—The term ‘executive 
agency’ has the meaning given that term in section 
133 of title 41, United States Code. 
‘‘(2) FEDERAL
ACQUISITION
REGULATION.— 
The term ‘Federal Acquisition Regulation’ means 
the regulation issued pursuant to section 1303(a)(1) 
of title 41, United States Code. 
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‘‘SEC. 1011. MULTILATERAL ENGAGEMENT AND COORDINA-
TION. 
‘‘The United States Trade Representative— 
‘‘(1) should, in coordination and consultation 
with relevant Federal agencies, conduct multilateral 
engagement with the governments of countries that 
are allies of the United States to secure coordination 
of protocols and procedures with respect to covered 
transactions with countries of concern; and 
‘‘(2) upon adoption of protocols and procedures 
described in paragraph (1), shall work with those 
governments to establish information sharing re-
gimes. 
‘‘SEC. 1012. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated such sums 
as may be necessary to carry out this title, including to 
provide outreach to industry and persons affected by this 
title. 
‘‘SEC. 1013. RULE OF CONSTRUCTION WITH RESPECT TO 
FREE AND FAIR COMMERCE. 
‘‘Nothing in this title may be construed as prohibiting 
or limiting the free and fair flow of commerce outside of 
the United States that does not pose an unacceptable risk 
to a national critical capability.’’. 
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(b) CLERICAL AMENDMENT.—The table of contents 
for the Trade Act of 1974 is amended by adding at the 
end the following: 
‘‘TITLE X—NATIONAL CRITICAL CAPABILITIES REVIEWS 
‘‘Sec. 1001. Definitions. 
‘‘Sec. 1002. Committee on National Critical Capabilities. 
‘‘Sec. 1003. Review of covered transactions. 
‘‘Sec. 1004. Action by the President. 
‘‘Sec. 1005. Factors to be considered. 
‘‘Sec. 1006. Supply chain sensitivities. 
‘‘Sec. 1007. Identification of additional national critical capabilities. 
‘‘Sec. 1008. Reporting requirements. 
‘‘Sec. 1009. Requirement for regulations. 
‘‘Sec. 1010. Requirements related to government procurement. 
‘‘Sec. 1011. Multilateral engagement and coordination. 
‘‘Sec. 1012. Authorization of appropriations. 
‘‘Sec. 1013. Rule of construction with respect to free and fair commerce.’’. 
Æ 
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