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the Buy American Act and other agency-specific do-
mestic preference statutes. 
(5) Conduct the review of reciprocal defense 
agreements required under subsection (d). 
(6) Ensure that Federal agencies, Federal finan-
cial assistance recipients, and the Hollings Manufac-
turing Extension Partnership partner with each other 
to promote compliance with domestic preference stat-
utes. 
(7) Support executive branch efforts to develop 
and sustain a domestic supply base to meet Federal 
procurement requirements. 
(c) OFFICE OF MANAGEMENT AND BUDGET REPORT.— 
Not later than 1 year after the date of the enactment of 
this Act, the Director of the Office of Management and 
Budget, working through the Made in America Director, 
shall report to the relevant congressional committees on the 
extent to which, in each of the three fiscal years prior to 
the date of enactment of this Act, articles, materials, or sup-
plies acquired by the Federal Government were mined, pro-
duced, or manufactured outside the United States. Such re-
port shall include for each Federal agency the following: 
(1) A summary of total procurement funds ex-
pended on articles, materials, and supplies mined, 
produced, or manufactured—
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(A) inside the United States; 
(B) outside the United States; and 
(C) outside the United States— 
(i) under each category of waiver 
under the Buy American Act; 
(ii) under each category of exception 
under such chapter; and 
(iii) for each country that mined, pro-
duced, or manufactured such articles, mate-
rials, and supplies. 
(2) For each fiscal year covered by the report— 
(A) the dollar value of any articles, mate-
rials, or supplies that were mined, produced, or 
manufactured outside the United States, in the 
aggregate and by country; 
(B) an itemized list of all waivers made 
under the Buy American Act with respect to ar-
ticles, materials, or supplies, where available, 
and the country where such articles, materials, 
or supplies were mined, produced, or manufac-
tured; 
(C) if any articles, materials, or supplies 
were acquired from entities that mine, produce, 
or manufacture such articles, materials, or sup-
plies outside the United States due to an excep-
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† HR 4521 EAS 
tion (that is not the micro-purchase threshold ex-
ception described under section 8302(a)(2)(C) of 
title 41, United States Code), the specific excep-
tion that was used to purchase such articles, ma-
terials, or supplies; and 
(D) if any articles, materials, or supplies 
were acquired from entities that mine, produce, 
or manufacture such articles, materials, or sup-
plies outside the United States pursuant to a re-
ciprocal defense procurement memorandum of 
understanding (as described in section 8304 of 
title 41, United States Code), or a trade agree-
ment or least developed country designation de-
scribed in subpart 25.400 of the Federal Acquisi-
tion Regulation, a citation to such memorandum 
of understanding, trade agreement, or designa-
tion. 
(3) A description of the methods used by each 
Federal agency to calculate the percentage domestic 
content of articles, materials, and supplies mined, 
produced, or manufactured in the United States. 
(d) REVIEW
OF
RECIPROCAL
DEFENSE
AGREE-
MENTS.— 
(1) REVIEW OF PROCESS.—Not later than 180 
days after the date of the enactment of this Act, the
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Made in America Director shall review the Depart-
ment of Defense’s use of reciprocal defense agreements 
to determine if domestic entities have equal and pro-
portional access and report the findings of the review 
to the Director of the Office of Management and 
Budget, the Secretary of Defense, and the Secretary of 
State. 
(2) REVIEW
OF
RECIPROCAL
PROCUREMENT 
MEMORANDA
OF
UNDERSTANDING.—The Made in 
America Director shall review reciprocal procurement 
memoranda of understanding entered into after the 
date of the enactment of this Act between the Depart-
ment of Defense and its counterparts in foreign gov-
ernments to assess whether domestic entities will have 
equal and proportional access under the memoranda 
of understanding and report the findings of the review 
to the Director of the Office of Management and 
Budget, the Secretary of Defense, and the Secretary of 
State. 
(e) REPORT ON USE OF MADE IN AMERICA LAWS.— 
The Made in America Director shall submit to the relevant 
congressional committees a summary of each report on the 
use of Made in America Laws received by the Made in 
America Director pursuant to section 11 of Executive Order 
14005, dated January 25, 2021 (relating to ensuring the
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future is made in all of America by all of America’s work-
ers) not later than 90 days after the date of the enactment 
of this Act or receipt of the reports required under section 
11 of such Executive Order, whichever is later. 
(f) DOMESTIC PREFERENCE STATUTE DEFINED.—In 
this section, the term ‘‘domestic preference statute’’ means 
any of the following: 
(1) the Buy American Act; 
(2) a Buy America law (as that term is defined 
in section 4116(a)); 
(3) the Berry Amendment; 
(4) section 604 of the American Recovery and 
Reinvestment Act of 2009 (6 U.S.C. 453b) (commonly 
referred to as the ‘‘Kissell amendment’’); 
(5) section 2533b of title 10 (commonly referred 
to as the ‘‘specialty metals clause’’); 
(6) laws requiring domestic preference for mari-
time transport, including the Merchant Marine Act, 
1920 (Public Law 66–261), commonly known as the 
‘‘Jones Act’’; and 
(7) any other law, regulation, rule, or executive 
order relating to Federal financial assistance awards 
or Federal procurement, that requires, or provides a 
preference for, the purchase or acquisition of goods, 
products, or materials produced in the United States,
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including iron, steel, construction material, and man-
ufactured goods offered in the United States. 
SEC. 4124. HOLLINGS MANUFACTURING EXTENSION PART-
NERSHIP ACTIVITIES. 
(a) USE OF HOLLINGS MANUFACTURING EXTENSION 
PARTNERSHIP
TO REFER NEW BUSINESSES
TO CON-
TRACTING OPPORTUNITIES.—The head of each Federal 
agency shall work with the Director of the Hollings Manu-
facturing Extension Partnership, as necessary, to ensure 
businesses participating in this Partnership are aware of 
their contracting opportunities. 
(b) AUTOMATIC ENROLLMENT IN GSA ADVANTAGE!.— 
The Administrator of the General Services Administration 
and the Secretary of Commerce, acting through the Under 
Secretary of Commerce for Standards and Technology, shall 
jointly ensure that each business that participates in the 
Hollings Manufacturing Extension Partnership is auto-
matically enrolled in General Services Administration Ad-
vantage!. 
SEC. 4125. UNITED STATES OBLIGATIONS UNDER INTER-
NATIONAL AGREEMENTS. 
This part, and the amendments made by this part, 
shall be applied in a manner consistent with United States 
obligations under international agreements.
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SEC. 4126. DEFINITIONS. 
In this part: 
(1) BERRY
AMENDMENT.—The term ‘‘Berry 
Amendment’’ means section 2533a of title 10, United 
States Code. 
(2) BUY AMERICAN ACT.—The term ‘‘Buy Amer-
ican Act’’ means chapter 83 of title 41, United States 
Code. 
(3) FEDERAL AGENCY.—The term ‘‘Federal agen-
cy’’ has the meaning given the term ‘‘executive agen-
cy’’ in section 133 of title 41, United States Code. 
(4) RELEVANT CONGRESSIONAL COMMITTEES.— 
The 
term 
‘‘relevant 
congressional 
committees’’ 
means— 
(A) the Committee on Homeland Security 
and Governmental Affairs, the Committee on 
Commerce, Science, and Transportation, the 
Committee on Environment and Public Works, 
the Committee on Banking, Housing, and Urban 
Affairs, and the Committee on Armed Services of 
the Senate; and 
(B) the Committee on Oversight and Re-
form, the Committee on Armed Services, and the 
Committee on Transportation and Infrastructure 
of the House of Representatives.
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(5) WAIVER.—The term ‘‘waiver’’, with respect 
to the acquisition of an article, material, or supply 
for public use, means the inapplicability of chapter 
83 of title 41, United States Code, to the acquisition 
by reason of any of the following determinations 
under section 8302(a)(1) or 8303(b) of such title: 
(A) A determination by the head of the Fed-
eral agency concerned that the acquisition is in-
consistent with the public interest. 
(B) A determination by the head of the Fed-
eral agency concerned that the cost of the acqui-
sition is unreasonable. 
(C) A determination by the head of the Fed-
eral agency concerned that the article, material, 
or supply is not mined, produced, or manufac-
tured in the United States in sufficient and rea-
sonably available commercial quantities of a sat-
isfactory quality. 
SEC. 4127. PROSPECTIVE AMENDMENTS TO INTERNAL 
CROSS-REFERENCES. 
(a) SPECIALTY METALS CLAUSE REFERENCE.—Sec-
tion 4123(f)(5) is amended by striking ‘‘section 2533b’’ and 
inserting ‘‘section 4863’’.
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(b) 
BERRY
AMENDMENT
REFERENCE.—Section 
4126(1) is amended by striking ‘‘section 2533a’’ and insert-
ing ‘‘section 4862’’. 
(c) EFFECTIVE DATE.—The amendments made by this 
section shall take effect on January 1, 2022. 
Subtitle B—BuyAmerican.gov 
SEC. 4131. SHORT TITLE. 
This subtitle may be cited as the ‘‘BuyAmerican.gov 
Act of 2021’’. 
SEC. 4132. DEFINITIONS. 
In this subtitle: 
(1) BUY AMERICAN LAW.—The term ‘‘Buy Amer-
ican law’’ means any law, regulation, Executive 
order, or rule relating to Federal contracts, grants, or 
financial assistance that requires or provides a pref-
erence for the purchase or use of goods, products, or 
materials mined, produced, or manufactured in the 
United States, including— 
(A) chapter 83 of title 41, United States 
Code (commonly referred to as the ‘‘Buy Amer-
ican Act’’); 
(B) section 5323(j) of title 49, United States 
Code; 
(C) section 313 of title 23, United States 
Code;
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(D) section 50101 of title 49, United States 
Code; 
(E) section 24405 of title 49, United States 
Code; 
(F) section 608 of the Federal Water Pollu-
tion Control Act (33 U.S.C. 1388); 
(G) section 1452(a)(4) of the Safe Drinking 
Water Act (42 U.S.C. 300j–12(a)(4)); 
(H) section 5035 of the Water Resources Re-
form and Development Act of 2014 (33 U.S.C. 
3914); 
(I) section 2533a of title 10, United States 
Code (commonly referred to as the ‘‘Berry 
Amendment’’); and 
(J) section 2533b of title 10, United States 
Code. 
(2) EXECUTIVE
AGENCY.—The term ‘‘executive 
agency’’ has the meaning given the term ‘‘agency’’ in 
paragraph (1) of section 3502 of title 44, United 
States Code, except that it does not include an inde-
pendent regulatory agency, as that term is defined in 
paragraph (5) of such section. 
(3) BUY
AMERICAN
WAIVER.—The term ‘‘Buy 
American waiver’’ refers to an exception to or waiver 
of any Buy American law, or the terms and condi-
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tions used by an agency in granting an exception to 
or waiver from Buy American laws. 
SEC. 4133. SENSE OF CONGRESS ON BUYING AMERICAN. 
It is the sense of Congress that— 
(1) every executive agency should maximize, 
through terms and conditions of Federal financial as-
sistance awards and Federal procurements, the use of 
goods, products, and materials produced in the 
United States and contracts for outsourced govern-
ment service contracts to be performed by United 
States nationals; 
(2) every executive agency should scrupulously 
monitor, enforce, and comply with Buy American 
laws, to the extent they apply, and minimize the use 
of waivers; and 
(3) every executive agency should use available 
data to routinely audit its compliance with Buy 
American laws. 
SEC. 4134. ASSESSMENT OF IMPACT OF FREE TRADE AGREE-
MENTS. 
Not later than 150 days after the date of the enactment 
of this Act, the Secretary of Commerce, the United States 
Trade Representative, and the Director of the Office of Man-
agement and Budget shall assess the impacts in a publicly 
available report of all United States free trade agreements,
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the World Trade Organization Agreement on Government 
Procurement, and Federal permitting processes on the oper-
ation of Buy American laws, including their impacts on 
the implementation of domestic procurement preferences. 
SEC. 4135. JUDICIOUS USE OF WAIVERS. 
(a) IN GENERAL.—To the extent permitted by law, a 
Buy American waiver that is determined by an agency 
head or other relevant official to be in the public interest 
shall be construed to ensure the maximum utilization of 
goods, products, and materials produced in the United 
States. 
(b) PUBLIC INTEREST WAIVER DETERMINATIONS.—To 
the extent permitted by law, determination of public inter-
est waivers shall be made by the head of the agency with 
the authority over the Federal financial assistance award 
or Federal procurement under consideration. 
SEC. 
4136. 
ESTABLISHMENT 
OF 
BUYAMERICAN.GOV 
WEBSITE. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the Administrator of Gen-
eral Services shall establish an Internet website with the 
address BuyAmerican.gov that will be publicly available 
and free to access. The website shall include information 
on all waivers of and exceptions to Buy American laws 
since the date of the enactment of this Act that have been
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requested, are under consideration, or have been granted by 
executive agencies and be designed to enable manufacturers 
and other interested parties to easily identify waivers. The 
website shall also include the results of routine audits to 
determine data errors and Buy American law violations 
after the award of a contract. The website shall provide pub-
licly available contact information for the relevant con-
tracting agencies. 
(b) UTILIZATION
OF EXISTING WEBSITE.—The re-
quirements of subsection (a) may be met by utilizing an 
existing website, provided that the address of that website 
is BuyAmerican.gov. 
SEC. 4137. WAIVER TRANSPARENCY AND STREAMLINING 
FOR CONTRACTS. 
(a) COLLECTION
OF INFORMATION.—The Adminis-
trator of General Services, in consultation with the heads 
of relevant agencies, shall develop a mechanism to collect 
information on requests to invoke a Buy American waiver 
for a Federal contract, utilizing existing reporting require-
ments whenever possible, for purposes of providing early no-
tice of possible waivers via the website established under sec-
tion 4136. 
(b) WAIVER TRANSPARENCY AND STREAMLINING.— 
(1) REQUIREMENT.—Prior to granting a request 
to waive a Buy American law, the head of an execu-
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† HR 4521 EAS 
tive agency shall submit a request to invoke a Buy 
American waiver to the Administrator of General 
Services, and the Administrator of General Services 
shall make the request available on or through the 
public website established under section 4136 for pub-
lic comment for not less than 15 days. 
(2) EXCEPTION.—The requirement under para-
graph (1) does not apply to a request for a Buy 
American waiver to satisfy an urgent contracting 
need in an unforeseen and exigent circumstance. 
(c) INFORMATION AVAILABLE
TO
THE EXECUTIVE 
AGENCY CONCERNING THE REQUEST.— 
(1) REQUIREMENT.—No Buy American waiver 
for purposes of awarding a contract may be granted 
if, in contravention of subsection (b)— 
(A) information about the waiver was not 
made available on the website under section 
4136; or 
(B) no opportunity for public comment con-
cerning the request was granted. 
(2) SCOPE.—Information made available to the 
public concerning the request included on the website 
described in section 4136 shall properly and ade-
quately document and justify the statutory basis cited
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effort to solicit bids for domestic products sup-
ported by terms included in requests for pro-
posals, contracts, and nonproprietary commu-
nications with the prime contractor. 
(d) NONAVAILABILITY WAIVERS.— 
(1) IN
GENERAL.—Except as provided under 
paragraph (2), for a request citing nonavailability as 
the statutory basis for a Buy American waiver, an 
executive agency shall provide an explanation of the 
procurement official’s efforts to procure a product 
from a domestic source and the reasons why a domes-
tic product was not available from a domestic source. 
Those explanations shall be made available on 
BuyAmerican.gov prior to the issuance of the waiver, 
and the agency shall consider public comments re-
garding the availability of the product before making 
a final determination. 
(2) EXCEPTION.—An explanation under para-
graph (1) is not required for a product the nonavail-
ability of which is established by law or regulation. 
SEC. 4138. COMPTROLLER GENERAL REPORT. 
Not later than two years after the date of the enact-
ment of this Act, the Comptroller General of the United 
States shall submit to Congress a report describing the im-
plementation of this subtitle, including recommendations
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for any legislation to improve the collection and reporting 
of information regarding waivers of and exceptions to Buy 
American laws. 
SEC. 4139. RULES OF CONSTRUCTION. 
(a) DISCLOSURE REQUIREMENTS.—Nothing in this 
subtitle shall be construed as preempting, superseding, or 
otherwise affecting the application of any disclosure re-
quirement or requirements otherwise provided by law or 
regulation. 
(b) ESTABLISHMENT
OF SUCCESSOR INFORMATION 
SYSTEMS.—Nothing in this subtitle shall be construed as 
preventing or otherwise limiting the ability of the Adminis-
trator of General Services to move the data required to be 
included on the website established under subsection (a) to 
a successor information system. Any such information sys-
tem shall include a reference to BuyAmerican.gov. 
SEC. 4140. CONSISTENCY WITH INTERNATIONAL AGREE-
MENTS. 
This subtitle shall be applied in a manner consistent 
with United States obligations under international agree-
ments. 
SEC. 4141. PROSPECTIVE AMENDMENTS TO INTERNAL 
CROSS-REFERENCES. 
(a) IN GENERAL.—Section 4132(1) is amended—
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(1) in subparagraph (I), by striking ‘‘section 
2533a’’ and inserting ‘‘section 4862’’; and 
(2) in subparagraph (J), by striking ‘‘section 
2533b’’ and inserting ‘‘section 4863’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect on January 1, 2022. 
Subtitle C—Make PPE in America 
SEC. 4151. SHORT TITLE. 
This subtitle may be cited as the ‘‘Make PPE in Amer-
ica Act’’. 
SEC. 4152. FINDINGS. 
Congress makes the following findings: 
(1) The COVID–19 pandemic has exposed the 
vulnerability of the United States supply chains for, 
and lack of domestic production of, personal protec-
tive equipment (PPE). 
(2) The United States requires a robust, secure, 
and wholly domestic PPE supply chain to safeguard 
public health and national security. 
(3) Issuing a strategy that provides the govern-
ment’s anticipated needs over the next three years will 
enable suppliers to assess what changes, if any, are 
needed in their manufacturing capacity to meet ex-
pected demands.
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(4) In order to foster a domestic PPE supply 
chain, United States industry needs a strong and 
consistent demand signal from the Federal Govern-
ment providing the necessary certainty to expand 
production capacity investment in the United States. 
(5) In order to effectively incentivize investment 
in the United States and the re-shoring of manufac-
turing, long-term contracts must be no shorter than 
three years in duration. 
(6) To accomplish this aim, the United States 
should seek to ensure compliance with its inter-
national obligations, such as its commitments under 
the World Trade Organization’s Agreement on Gov-
ernment Procurement and its free trade agreements, 
including by invoking any relevant exceptions to 
those agreements, especially those related to national 
security and public health. 
(7) The United States needs a long-term invest-
ment strategy for the domestic production of PPE 
items critical to the United States national response 
to a public health crisis, including the COVID–19 
pandemic.
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SEC. 4153. REQUIREMENT OF LONG-TERM CONTRACTS FOR 
DOMESTICALLY MANUFACTURED PERSONAL 
PROTECTIVE EQUIPMENT. 
(a) DEFINITIONS.—In this section: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Homeland Security 
and Governmental Affairs, the Committee on 
Health, Education, Labor, and Pensions, the 
Committee on Finance, and the Committee on 
Veterans’ Affairs of the Senate; and 
(B) the Committee on Homeland Security, 
the Committee on Oversight and Reform, the 
Committee on Energy and Commerce, the Com-
mittee on Ways and Means, and the Committee 
on Veterans’ Affairs of the House of Representa-
tives. 
(2) COVERED SECRETARY.—The term ‘‘covered 
Secretary’’ means the Secretary of Homeland Secu-
rity, the Secretary of Health and Human Services, 
and the Secretary of Veterans Affairs. 
(3) PERSONAL
PROTECTIVE
EQUIPMENT.—The 
term ‘‘personal protective equipment’’ means surgical 
masks, respirator masks and powered air purifying 
respirators and required filters, face shields and pro-
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tective eyewear, gloves, disposable and reusable sur-
gical and isolation gowns, head and foot coverings, 
and other gear or clothing used to protect an indi-
vidual from the transmission of disease. 
(4) UNITED STATES.—The term ‘‘United States’’ 
means the 50 States, the District of Columbia, and 
the possessions of the United States. 
(b) CONTRACT REQUIREMENTS FOR DOMESTIC PRO-
DUCTION.—Beginning 90 days after the date of the enact-
ment of this Act, in order to ensure the sustainment and 
expansion of personal protective equipment manufacturing 
in the United States and meet the needs of the current pan-
demic response, any contract for the procurement of per-
sonal protective equipment entered into by a covered Sec-
retary, or a covered Secretary’s designee, shall— 
(1) be issued for a duration of at least 2 years, 
plus all option periods necessary, to incentivize in-
vestment in the production of personal protective 
equipment and the materials and components thereof 
in the United States; and 
(2) be for personal protective equipment, includ-
ing the materials and components thereof, that is 
grown, reprocessed, reused, or produced in the United 
States.
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(c) ALTERNATIVES TO DOMESTIC PRODUCTION.—The 
requirement under subsection (b) shall not apply to an item 
of personal protective equipment, or component or material 
thereof if, after maximizing to the extent feasible sources 
consistent with subsection (b), the covered Secretary— 
(1) maximizes sources for personal protective 
equipment that is assembled outside the United States 
containing only materials and components that are 
grown, reprocessed, reused, or produced in the United 
States; and 
(2) certifies every 120 days that it is necessary 
to procure personal protective equipment under alter-
native procedures to respond to the immediate needs 
of a public health emergency. 
(d) AVAILABILITY EXCEPTION.— 
(1) IN GENERAL.—Subsections (b) and (c) shall 
not apply to an item of personal protective equip-
ment, or component or material thereof— 
(A) that is, or that includes, a material list-
ed in section 25.104 of the Federal Acquisition 
Regulation as one for which a non-availability 
determination has been made; or 
(B) as to which the covered Secretary deter-
mines that a sufficient quantity of a satisfactory 
quality that is grown, reprocessed, reused, or
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† HR 4521 EAS 
produced in the United States cannot be pro-
cured as, and when, needed at United States 
market prices. 
(2) CERTIFICATION REQUIREMENT.—The covered 
Secretary shall certify every 120 days that the excep-
tion under paragraph (1) is necessary to meet the im-
mediate needs of a public health emergency. 
(e) REPORT.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, the Director of 
the Office of Management and Budget, in consultation 
with the covered Secretaries, shall submit to the 
chairs and ranking members of the appropriate con-
gressional committees a report on the procurement of 
personal protective equipment. 
(2) ELEMENTS.—The report required under 
paragraph (1) shall include the following elements: 
(A) The United States long-term domestic 
procurement strategy for PPE produced in the 
United States, including strategies to incentivize 
investment in and maintain United States sup-
ply chains for all PPE sufficient to meet the 
needs of the United States during a public health 
emergency.
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† HR 4521 EAS 
(B) An estimate of long-term demand quan-
tities for all PPE items procured by the United 
States. 
(C) Recommendations for congressional ac-
tion required to implement the United States 
Government’s procurement strategy. 
(D) A determination whether all notifica-
tions, amendments, and other necessary actions 
have been completed to bring the United States 
existing international obligations into con-
formity with the statutory requirements of this 
subtitle. 
(f) AUTHORIZATION OF TRANSFER OF EQUIPMENT.— 
(1) IN
GENERAL.—A covered Secretary may 
transfer to the Strategic National Stockpile estab-
lished under section 319F–2 of the Public Health 
Service Act (42 U.S.C. 247d–6b) any excess personal 
protective equipment acquired under a contract exe-
cuted pursuant to subsection (b). 
(2) TRANSFER OF EQUIPMENT DURING A PUBLIC 
HEALTH EMERGENCY.— 
(A) AMENDMENT.—Title V of the Homeland 
Security Act of 2002 (6 U.S.C. 311 et seq.) is 
amended by adding at the end the following:
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† HR 4521 EAS 
‘‘SEC. 529. TRANSFER OF EQUIPMENT DURING A PUBLIC 
HEALTH EMERGENCY. 
‘‘(a) AUTHORIZATION
OF
TRANSFER
OF
EQUIP-
MENT.—During a public health emergency declared by the 
Secretary of Health and Human Services under section 
319(a) of the Public Health Service Act (42 U.S.C. 
247d(a)), the Secretary, at the request of the Secretary of 
Health and Human Services, may transfer to the Depart-
ment of Health and Human Services, on a reimbursable 
basis, excess personal protective equipment or medically 
necessary equipment in the possession of the Department. 
‘‘(b) DETERMINATION BY SECRETARIES.— 
‘‘(1) IN
GENERAL.—In carrying out this sec-
tion— 
‘‘(A) before requesting a transfer under sub-
section (a), the Secretary of Health and Human 
Services shall determine whether the personal 
protective equipment or medically necessary 
equipment is otherwise available; and 
‘‘(B) before initiating a transfer under sub-
section (a), the Secretary, in consultation with 
the heads of each component within the Depart-
ment, shall— 
‘‘(i) determine whether the personal 
protective equipment or medically necessary
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† HR 4521 EAS 
equipment requested to be transferred under 
subsection (a) is excess equipment; and 
‘‘(ii) certify that the transfer of the 
personal protective equipment or medically 
necessary equipment will not adversely im-
pact the health or safety of officers, employ-
ees, or contractors of the Department. 
‘‘(2) NOTIFICATION.—The Secretary of Health 
and Human Services and the Secretary shall each 
submit to Congress a notification explaining the de-
termination made under subparagraphs (A) and (B), 
respectively, of paragraph (1). 
‘‘(3) REQUIRED INVENTORY.— 
‘‘(A) IN GENERAL.—The Secretary shall— 
‘‘(i) acting through the Chief Medical 
Officer of the Department, maintain an in-
ventory of all personal protective equipment 
and medically necessary equipment in the 
possession of the Department; and 
‘‘(ii) make the inventory required 
under clause (i) available, on a continual 
basis, to— 
‘‘(I) the Secretary of Health and 
Human Services; and
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‘‘(II) the Committee on Appro-
priations and the Committee on Home-
land Security and Governmental Af-
fairs of the Senate and the Committee 
on Appropriations and the Committee 
on Homeland Security of the House of 
Representatives. 
‘‘(B) FORM.—Each inventory required to be 
made available under subparagraph (A) shall be 
submitted in unclassified form, but may include 
a classified annex.’’. 
(B) TABLE
OF
CONTENTS
AMENDMENT.— 
The table of contents in section 1(b) of the Home-
land Security Act of 2002 (Public Law 107–296; 
116 Stat. 2135) is amended by inserting after 
the item relating to section 528 the following: 
‘‘Sec. 529. Transfer of equipment during a public health emergency.’’. 
(3) STRATEGIC NATIONAL STOCKPILE.—Section 
319F–2(a) of the Public Health Service Act (42 
U.S.C. 247d–6b(a)) is amended by adding at the end 
the following: 
‘‘(6) TRANSFERS OF ITEMS.—The Secretary, in 
coordination with the Secretary of Homeland Secu-
rity, may sell drugs, vaccines and other biological 
products, medical devices, or other supplies main-
tained in the stockpile under paragraph (1) to a Fed-
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† HR 4521 EAS 
eral agency or private, nonprofit, State, local, tribal, 
or territorial entity for immediate use and distribu-
tion, provided that any such items being sold are— 
‘‘(A) within 1 year of their expiration date; 
or 
‘‘(B) determined by the Secretary to no 
longer be needed in the stockpile due to advances 
in medical or technical capabilities.’’. 
(g) COMPLIANCE
WITH
INTERNATIONAL
AGREE-
MENTS.—The President or the President’s designee shall 
take all necessary steps, including invoking the rights of the 
United States under Article III of the World Trade Organi-
zation’s Agreement on Government Procurement and the 
relevant exceptions of other relevant agreements to which 
the United States is a party, to ensure that the inter-
national obligations of the United States are consistent with 
the provisions of this subtitle. 
TITLE II—CYBER AND 
ARTIFICIAL INTELLIGENCE 
Subtitle A—Advancing American AI 
SEC. 4201. SHORT TITLE. 
This subtitle may be cited as the ‘‘Advancing Amer-
ican AI Act’’. 
SEC. 4202. PURPOSE. 
The purposes of this subtitle are to—
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† HR 4521 EAS 
(1) encourage agency artificial intelligence-re-
lated programs and initiatives that enhance the com-
petitiveness of the United States and foster an ap-
proach to artificial intelligence that builds on the 
strengths of the United States in innovation and 
entrepreneurialism; 
(2) enhance the ability of the Federal Govern-
ment to translate research advances into artificial in-
telligence applications to modernize systems and as-
sist agency leaders in fulfilling their missions; 
(3) promote adoption of modernized business 
practices and advanced technologies across the Fed-
eral Government that align with the values of the 
United States, including the protection of privacy, 
civil rights, and civil liberties; and 
(4) test and harness applied artificial intel-
ligence to enhance mission effectiveness and business 
practice efficiency. 
SEC. 4203. DEFINITIONS. 
In this subtitle: 
(1) AGENCY.—The term ‘‘agency’’ has the mean-
ing given the term in section 3502 of title 44, United 
States Code.
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† HR 4521 EAS 
(2) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; and 
(B) the Committee on Oversight and Reform 
of the House of Representatives. 
(3) ARTIFICIAL INTELLIGENCE.—The term ‘‘arti-
ficial intelligence’’ has the meaning given the term in 
section 238(g) of the John S. McCain National De-
fense Authorization Act for Fiscal Year 2019 (10 
U.S.C. 2358 note). 
(4) ARTIFICIAL
INTELLIGENCE
SYSTEM.—The 
term ‘‘artificial intelligence system’’— 
(A) means any data system, software, ap-
plication, tool, or utility that operates in whole 
or in part using dynamic or static machine 
learning algorithms or other forms of artificial 
intelligence, whether— 
(i) the data system, software, applica-
tion, tool, or utility is established primarily 
for the purpose of researching, developing, 
or implementing artificial intelligence tech-
nology; or
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(ii) artificial intelligence capability is 
integrated into another system or agency 
business process, operational activity, or 
technology system; and 
(B) does not include any common commer-
cial product within which artificial intelligence 
is embedded, such as a word processor or map 
navigation system. 
(5) DEPARTMENT.—The term ‘‘Department’’ 
means the Department of Homeland Security. 
(6) DIRECTOR.—The term ‘‘Director’’ means the 
Director of the Office of Management and Budget. 
SEC. 4204. PRINCIPLES AND POLICIES FOR USE OF ARTIFI-
CIAL INTELLIGENCE IN GOVERNMENT. 
(a) GUIDANCE.—The Director shall, when developing 
the guidance required under section 104(a) of the AI in 
Government Act of 2020 (title I of division U of Public Law 
116–260), consider— 
(1) the considerations and recommended prac-
tices identified by the National Security Commission 
on Artificial Intelligence in the report entitled ‘‘Key 
Considerations for the Responsible Development and 
Fielding of AI’’, as updated in April 2021; 
(2) the principles articulated in Executive Order 
13960 (85 Fed. Reg. 78939; relating to promoting the
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† HR 4521 EAS 
use of trustworthy artificial intelligence in Govern-
ment); and 
(3) the input of— 
(A) the Privacy and Civil Liberties Over-
sight Board; 
(B) relevant interagency councils, such as 
the Federal Privacy Council, the Chief Informa-
tion Officers Council, and the Chief Data Offi-
cers Council; 
(C) other governmental and nongovern-
mental privacy, civil rights, and civil liberties 
experts; and 
(D) any other individual or entity the Di-
rector determines to be appropriate. 
(b) DEPARTMENT POLICIES AND PROCESSES FOR PRO-
CUREMENT AND USE OF ARTIFICIAL INTELLIGENCE-EN-
ABLED SYSTEMS.—Not later than 180 days after the date 
of enactment of this Act— 
(1) the Secretary of Homeland Security, with the 
participation of the Chief Procurement Officer, the 
Chief Information Officer, the Chief Privacy Officer, 
and the Officer for Civil Rights and Civil Liberties 
of the Department and any other person determined 
to be relevant by the Secretary of Homeland Security,
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† HR 4521 EAS 
shall issue policies and procedures for the Department 
related to— 
(A) the acquisition and use of artificial in-
telligence; and 
(B) considerations for the risks and impacts 
related to artificial intelligence-enabled systems, 
including associated data of machine learning 
systems, to ensure that full consideration is given 
to— 
(i) the privacy, civil rights, and civil 
liberties impacts of artificial intelligence-en-
abled systems; and 
(ii) security against misuse, degrada-
tion, or rending inoperable of artificial in-
telligence-enabled systems; and 
(2) the Chief Privacy Officer and the Officer for 
Civil Rights and Civil Liberties of the Department 
shall report to Congress on any additional staffing or 
funding resources that may be required to carry out 
the requirements of this subsection. 
(c) INSPECTOR GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Inspector General 
of the Department shall identify any training and invest-
ments needed to enable employees of the Office of the Inspec-
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† HR 4521 EAS 
tor General to continually advance their understanding 
of— 
(1) artificial intelligence systems; 
(2) best practices for governance, oversight, and 
audits of the use of artificial intelligence systems; and 
(3) how the Office of the Inspector General is 
using artificial intelligence to enhance audit and in-
vestigative capabilities, including actions to— 
(A) ensure the integrity of audit and inves-
tigative results; and 
(B) guard against bias in the selection and 
conduct of audits and investigations. 
(d) ARTIFICIAL INTELLIGENCE HYGIENE AND PROTEC-
TION
OF GOVERNMENT INFORMATION, PRIVACY, CIVIL 
RIGHTS, AND CIVIL LIBERTIES.— 
(1) ESTABLISHMENT.—Not later than 1 year 
after the date of enactment of this Act, the Director, 
in consultation with a working group consisting of 
members selected by the Director from appropriate 
interagency councils, shall develop an initial means 
by which to— 
(A) ensure that contracts for the acquisition 
of an artificial intelligence system or service— 
(i) align with the guidance issued to 
the head of each agency under section
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† HR 4521 EAS 
104(a) of the AI in Government Act of 2020 
(title I of division U of Public Law 116– 
260); 
(ii) address protection of privacy, civil 
rights, and civil liberties; 
(iii) address the ownership and secu-
rity of data and other information created, 
used, processed, stored, maintained, dissemi-
nated, disclosed, or disposed of by a con-
tractor or subcontractor on behalf of the 
Federal Government; and 
(iv) include considerations for securing 
the training data, algorithms, and other 
components of any artificial intelligence 
system against misuse, unauthorized alter-
ation, degradation, or rendering inoperable; 
and 
(B) address any other issue or concern de-
termined to be relevant by the Director to ensure 
appropriate use and protection of privacy and 
Government data and other information. 
(2) CONSULTATION.—In developing the consider-
ations under paragraph (1)(A)(iv), the Director shall 
consult with the Secretary of Homeland Security, the
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† HR 4521 EAS 
Director of the National Institute of Standards and 
Technology, and the Director of National Intelligence. 
(3) REVIEW.—The Director— 
(A) should continuously update the means 
developed under paragraph (1); and 
(B) not later than 2 years after the date of 
enactment of this Act and not less frequently 
than every 2 years thereafter, shall update the 
means developed under paragraph (1). 
(4) BRIEFING.—The Director shall brief the ap-
propriate congressional committees— 
(A) not later than 90 days after the date of 
enactment of this Act and thereafter on a quar-
terly basis until the Director first implements 
the means developed under paragraph (1); and 
(B) annually thereafter on the implementa-
tion of this subsection. 
(5) SUNSET.—This subsection shall cease to be 
effective on the date that is 5 years after the date of 
enactment of this Act. 
SEC. 4205. AGENCY INVENTORIES AND ARTIFICIAL INTEL-
LIGENCE USE CASES. 
(a) INVENTORY.—Not later than 60 days after the date 
of enactment of this Act, and continuously thereafter for 
a period of 5 years, the Director, in consultation with the
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† HR 4521 EAS 
Chief Information Officers Council, the Chief Data Officers 
Council, and other interagency bodies as determined to be 
appropriate by the Director, shall require the head of each 
agency to— 
(1) prepare and maintain an inventory of the 
artificial intelligence use cases of the agency, includ-
ing current and planned uses; 
(2) share agency inventories with other agencies, 
to the extent practicable and consistent with applica-
ble law and policy, including those concerning protec-
tion of privacy and of sensitive law enforcement, na-
tional security, and other protected information; and 
(3) make agency inventories available to the pub-
lic, in a manner determined by the Director, and to 
the extent practicable and in accordance with appli-
cable law and policy, including those concerning the 
protection of privacy and of sensitive law enforce-
ment, national security, and other protected informa-
tion. 
(b) CENTRAL INVENTORY.—The Director is encouraged 
to designate a host entity and ensure the creation and 
maintenance of an online public directory to— 
(1) make agency artificial intelligence use case 
information available to the public and those wishing 
to do business with the Federal Government; and
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† HR 4521 EAS 
(2) identify common use cases across agencies. 
(c) SHARING.—The sharing of agency inventories de-
scribed in subsection (a)(2) may be coordinated through the 
Chief Information Officers Council, the Chief Data Officers 
Council, the Chief Financial Officers Council, the Chief Ac-
quisition Officers Council, or other interagency bodies to 
improve interagency coordination and information sharing 
for common use cases. 
SEC. 4206. RAPID PILOT, DEPLOYMENT AND SCALE OF AP-
PLIED ARTIFICIAL INTELLIGENCE CAPABILI-
TIES TO DEMONSTRATE MODERNIZATION AC-
TIVITIES RELATED TO USE CASES. 
(a) IDENTIFICATION OF USE CASES.—Not later than 
270 days after the date of enactment of this Act, the Direc-
tor, in consultation with the Chief Information Officers 
Council, the Chief Data Officers Council, and other inter-
agency bodies as determined to be appropriate by the Direc-
tor, shall identify 4 new use cases for the application of 
artificial intelligence-enabled systems to support inter-
agency or intra-agency modernization initiatives that re-
quire linking multiple siloed internal and external data 
sources, consistent with applicable laws and policies, in-
cluding those relating to the protection of privacy and of 
sensitive law enforcement, national security, and other pro-
tected information.
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† HR 4521 EAS 
(b) PILOT PROGRAM.— 
(1) PURPOSES.—The purposes of the pilot pro-
gram under this subsection include— 
(A) to enable agencies to operate across or-
ganizational boundaries, coordinating between 
existing established programs and silos to im-
prove delivery of the agency mission; and 
(B) to demonstrate the circumstances under 
which artificial intelligence can be used to mod-
ernize or assist in modernizing legacy agency 
systems. 
(2) DEPLOYMENT AND PILOT.—Not later than 1 
year after the date of enactment of this Act, the Direc-
tor, in coordination with the heads of relevant agen-
cies and other officials as the Director determines to 
be appropriate, shall ensure the initiation of the pi-
loting of the 4 new artificial intelligence use case ap-
plications identified under subsection (a), leveraging 
commercially available technologies and systems to 
demonstrate scalable artificial intelligence-enabled ca-
pabilities to support the use cases identified under 
subsection (a). 
(3) RISK EVALUATION AND MITIGATION PLAN.— 
In carrying out paragraph (2), the Director shall re-
quire the heads of agencies to—
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† HR 4521 EAS 
(A) evaluate risks in utilizing artificial in-
telligence systems; and 
(B) develop a risk mitigation plan to ad-
dress those risks, including consideration of— 
(i) the artificial intelligence system not 
performing as expected; 
(ii) the lack of sufficient or quality 
training data; and 
(iii) the vulnerability of a utilized ar-
tificial intelligence system to unauthorized 
manipulation or misuse. 
(4) PRIORITIZATION.—In carrying out para-
graph (2), the Director shall prioritize modernization 
projects that— 
(A) would benefit from commercially avail-
able privacy-preserving techniques, such as use of 
differential privacy, federated learning, and se-
cure multiparty computing; and 
(B) otherwise take into account consider-
ations of civil rights and civil liberties. 
(5) USE
CASE
MODERNIZATION
APPLICATION 
AREAS.—Use case modernization application areas 
described in paragraph (2) shall include not less than 
1 from each of the following categories:
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† HR 4521 EAS 
(A) Applied artificial intelligence to drive 
agency productivity efficiencies in predictive 
supply chain and logistics, such as— 
(i) predictive food demand and opti-
mized supply; 
(ii) predictive medical supplies and 
equipment demand and optimized supply; 
or 
(iii) predictive logistics to accelerate 
disaster preparedness, response, and recov-
ery. 
(B) Applied artificial intelligence to accel-
erate agency investment return and address mis-
sion-oriented challenges, such as— 
(i) applied artificial intelligence port-
folio management for agencies; 
(ii) 
workforce 
development 
and 
upskilling; 
(iii) redundant and laborious analyses; 
(iv) determining compliance with Gov-
ernment requirements, such as with grants 
management; or 
(v) outcomes measurement to measure 
economic and social benefits.
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† HR 4521 EAS 
(6) REQUIREMENTS.—Not later than 3 years 
after the date of enactment of this Act, the Director, 
in coordination with the heads of relevant agencies 
and other officials as the Director determines to be 
appropriate, shall establish an artificial intelligence 
capability within each of the 4 use case pilots under 
this subsection that— 
(A) solves data access and usability issues 
with automated technology and eliminates or 
minimizes the need for manual data cleansing 
and harmonization efforts; 
(B) continuously and automatically ingests 
data and updates domain models in near real- 
time to help identify new patterns and predict 
trends, to the extent possible, to help agency per-
sonnel to make better decisions and take faster 
actions; 
(C) organizes data for meaningful data vis-
ualization and analysis so the Government has 
predictive transparency for situational aware-
ness to improve use case outcomes; 
(D) is rapidly configurable to support mul-
tiple applications and automatically adapts to 
dynamic conditions and evolving use case re-
quirements, to the extent possible;
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(E) enables knowledge transfer and collabo-
ration across agencies; and 
(F) preserves intellectual property rights to 
the data and output for benefit of the Federal 
Government and agencies. 
(c) BRIEFING.—Not earlier than 270 days but not 
later than 1 year after the date of enactment of this Act, 
and annually thereafter for 4 years, the Director shall brief 
the appropriate congressional committees on the activities 
carried out under this section and results of those activities. 
(d) SUNSET.—The section shall cease to be effective on 
the date that is 5 years after the date of enactment of this 
Act. 
SEC. 4207. ENABLING ENTREPRENEURS AND AGENCY MIS-
SIONS. 
(a) INNOVATIVE COMMERCIAL ITEMS.—Section 880 of 
the National Defense Authorization Act for Fiscal Year 
2017 (41 U.S.C. 3301 note) is amended— 
(1) in subsection (c), by striking $10,000,000’’ 
and inserting ‘‘$25,000,000’’; 
(2) by amending subsection (f) to read as follows: 
‘‘(f) DEFINITIONS.—In this section— 
‘‘(1) the term ‘commercial product’—
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† HR 4521 EAS 
‘‘(A) has the meaning given the term ‘com-
mercial item’ in section 2.101 of the Federal Ac-
quisition Regulation; and 
‘‘(B) includes a commercial product or a 
commercial service, as defined in sections 103 
and 103a, respectively, of title 41, United States 
Code; and 
‘‘(2) the term ‘innovative’ means— 
‘‘(A) any new technology, process, or meth-
od, including research and development; or 
‘‘(B) any new application of an existing 
technology, process, or method.’’; and 
(3) in subsection (g), by striking ‘‘2022’’ and in-
sert ‘‘2027’’. 
(b) DHS OTHER TRANSACTION AUTHORITY.—Section 
831 of the Homeland Security Act of 2002 (6 U.S.C. 391) 
is amended— 
(1) in subsection (a)— 
(A) in the matter preceding paragraph (1), 
by striking ‘‘September 30, 2017’’ and inserting 
‘‘September 30, 2024’’; and 
(B) by amending paragraph (2) to read as 
follows: 
‘‘(2) PROTOTYPE PROJECTS.—The Secretary—
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† HR 4521 EAS 
‘‘(A) may, under the authority of para-
graph (1), carry out prototype projects under 
section 2371b of title 10, United States Code; 
and 
‘‘(B) in applying the authorities of such sec-
tion 2371b, the Secretary shall perform the func-
tions of the Secretary of Defense as prescribed in 
such section.’’; 
(2) in subsection (c)(1), by striking ‘‘September 
30, 2017’’ and inserting ‘‘September 30, 2024’’; and 
(3) in subsection (d), by striking ‘‘section 
845(e)’’ and all that follows and inserting ‘‘section 
2371b(e) of title 10, United States Code.’’. 
(c) COMMERCIAL OFF
THE SHELF SUPPLY CHAIN 
RISK MANAGEMENT TOOLS.—The General Services Admin-
istration is encouraged to pilot commercial off the shelf sup-
ply chain risk management tools to improve the ability of 
the Federal Government to characterize, monitor, predict, 
and respond to specific supply chain threats and 
vulnerabilities that could inhibit future Federal acquisition 
operations.
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† HR 4521 EAS 
Subtitle B—Cyber Response and 
Recovery 
SEC. 4251. SHORT TITLE. 
This subtitle may be cited as the ‘‘Cyber Response and 
Recovery Act’’. 
SEC. 4252. DECLARATION OF A SIGNIFICANT INCIDENT. 
(a) IN GENERAL.—Title XXII of the Homeland Secu-
rity Act of 2002 (6 U.S.C. 651 et seq.) is amended by add-
ing at the end the following: 
‘‘Subtitle C—Declaration of a 
Significant Incident 
‘‘SEC. 2231. SENSE OF CONGRESS. 
‘‘It is the sense of Congress that— 
‘‘(1) the purpose of this subtitle is to authorize 
the Secretary to declare that a significant incident 
has occurred and to establish the authorities that are 
provided under the declaration to respond to and re-
cover from the significant incident; and 
‘‘(2) the authorities established under this sub-
title are intended to enable the Secretary to provide 
voluntary assistance to non-Federal entities impacted 
by a significant incident. 
‘‘SEC. 2232. DEFINITIONS. 
‘‘For the purposes of this subtitle:
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† HR 4521 EAS 
‘‘(1) ASSET
RESPONSE
ACTIVITY.—The term 
‘asset response activity’ means an activity to support 
an entity impacted by an incident with the response 
to, remediation of, or recovery from, the incident, in-
cluding— 
‘‘(A) furnishing technical and advisory as-
sistance to the entity to protect the assets of the 
entity, mitigate vulnerabilities, and reduce the 
related impacts; 
‘‘(B) assessing potential risks to the critical 
infrastructure sector or geographic region im-
pacted by the incident, including potential cas-
cading effects of the incident on other critical in-
frastructure sectors or geographic regions; 
‘‘(C) developing courses of action to miti-
gate the risks assessed under subparagraph (B); 
‘‘(D) facilitating information sharing and 
operational coordination with entities per-
forming threat response activities; and 
‘‘(E) providing guidance on how best to use 
Federal resources and capabilities in a timely, 
effective manner to speed recovery from the inci-
dent.
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† HR 4521 EAS 
‘‘(2) DECLARATION.—The 
term 
‘declaration’ 
means a declaration of the Secretary under section 
2233(a)(1). 
‘‘(3) DIRECTOR.—The term ‘Director’ means the 
Director of the Cybersecurity and Infrastructure Se-
curity Agency. 
‘‘(4) FEDERAL
AGENCY.—The term ‘Federal 
agency’ has the meaning given the term ‘agency’ in 
section 3502 of title 44, United States Code. 
‘‘(5) FUND.—The term ‘Fund’ means the Cyber 
Response and Recovery Fund established under sec-
tion 2234(a). 
‘‘(6) INCIDENT.—The term ‘incident’ has the 
meaning given the term in section 3552 of title 44, 
United States Code. 
‘‘(7) RENEWAL.—The term ‘renewal’ means a re-
newal of a declaration under section 2233(d). 
‘‘(8) SIGNIFICANT INCIDENT.—The term ‘signifi-
cant incident’— 
‘‘(A) means an incident or a group of re-
lated incidents that results, or is likely to result, 
in demonstrable harm to— 
‘‘(i) the national security interests, for-
eign relations, or economy of the United 
States; or
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† HR 4521 EAS 
‘‘(ii) the public confidence, civil lib-
erties, or public health and safety of the 
people of the United States; and 
‘‘(B) does not include an incident or a por-
tion of a group of related incidents that occurs 
on— 
‘‘(i) a national security system (as de-
fined in section 3552 of title 44, United 
States Code); or 
‘‘(ii) an information system described 
in paragraph (2) or (3) of section 3553(e) 
of title 44, United States Code. 
‘‘SEC. 2233. DECLARATION. 
‘‘(a) IN GENERAL.— 
‘‘(1) DECLARATION.—The Secretary, in consulta-
tion with the National Cyber Director, may make a 
declaration of a significant incident in accordance 
with this section for the purpose of enabling the ac-
tivities described in this subtitle if the Secretary de-
termines that— 
‘‘(A) a specific significant incident— 
‘‘(i) has occurred; or 
‘‘(ii) is likely to occur imminently; and 
‘‘(B) otherwise available resources, other 
than the Fund, are likely insufficient to respond
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† HR 4521 EAS 
effectively to, or to mitigate effectively, the spe-
cific significant incident described in subpara-
graph (A). 
‘‘(2) PROHIBITION ON DELEGATION.—The Sec-
retary may not delegate the authority provided to the 
Secretary under paragraph (1). 
‘‘(b) ASSET RESPONSE ACTIVITIES.—Upon a declara-
tion, the Director shall coordinate— 
‘‘(1) the asset response activities of each Federal 
agency in response to the specific significant incident 
associated with the declaration; and 
‘‘(2) with appropriate entities, which may in-
clude— 
‘‘(A) public and private entities and State 
and local governments with respect to the asset 
response activities of those entities and govern-
ments; and 
‘‘(B) Federal, State, local, and Tribal law 
enforcement agencies with respect to investiga-
tions and threat response activities of those law 
enforcement agencies; and 
‘‘(3) Federal, State, local, and Tribal emergency 
management and response agencies. 
‘‘(c) DURATION.—Subject to subsection (d), a declara-
tion shall terminate upon the earlier of—
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† HR 4521 EAS 
‘‘(1) a determination by the Secretary that the 
declaration is no longer necessary; or 
‘‘(2) the expiration of the 120-day period begin-
ning on the date on which the Secretary makes the 
declaration. 
‘‘(d) RENEWAL.—The Secretary, without delegation, 
may renew a declaration as necessary. 
‘‘(e) PUBLICATION.— 
‘‘(1) IN GENERAL.—Not later than 72 hours after 
a declaration or a renewal, the Secretary shall pub-
lish the declaration or renewal in the Federal Reg-
ister. 
‘‘(2) PROHIBITION.—A declaration or renewal 
published under paragraph (1) may not include the 
name of any affected individual or private company. 
‘‘(f) ADVANCE ACTIONS.— 
‘‘(1) IN GENERAL.—The Secretary— 
‘‘(A) shall assess the resources available to 
respond to a potential declaration; and 
‘‘(B) may take actions before and while a 
declaration is in effect to arrange or procure ad-
ditional resources for asset response activities or 
technical assistance the Secretary determines 
necessary, which may include entering into 
standby contracts with private entities for cyber-
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† HR 4521 EAS 
security services or incident responders in the 
event of a declaration. 
‘‘(2) EXPENDITURE
OF
FUNDS.—Any expendi-
ture from the Fund for the purpose of paragraph 
(1)(B) shall be made from amounts available in the 
Fund, and amounts available in the Fund shall be in 
addition to any other appropriations available to the 
Cybersecurity and Infrastructure Security Agency for 
such purpose. 
‘‘SEC. 2234. CYBER RESPONSE AND RECOVERY FUND. 
‘‘(a) IN GENERAL.—There is established a Cyber Re-
sponse and Recovery Fund, which shall be available for— 
‘‘(1) the coordination of activities described in 
section 2233(b); 
‘‘(2) response and recovery support for the spe-
cific significant incident associated with a declara-
tion to Federal, State, local, and Tribal, entities and 
public and private entities on a reimbursable or non- 
reimbursable basis, including through asset response 
activities and technical assistance, such as— 
‘‘(A) vulnerability assessments and mitiga-
tion; 
‘‘(B) technical incident mitigation; 
‘‘(C) malware analysis; 
‘‘(D) analytic support;
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† HR 4521 EAS 
‘‘(E) threat detection and hunting; and 
‘‘(F) network protections; 
‘‘(3) as the Director determines appropriate, 
grants for, or cooperative agreements with, Federal, 
State, local, and Tribal public and private entities to 
respond to, and recover from, the specific significant 
incident associated with a declaration, such as— 
‘‘(A) hardware or software to replace, up-
date, 
improve, 
harden, 
or 
enhance 
the 
functionality of existing hardware, software, or 
systems; and 
‘‘(B) technical contract personnel support; 
and 
‘‘(4) advance actions taken by the Secretary 
under section 2233(f)(1)(B). 
‘‘(b) DEPOSITS AND EXPENDITURES.— 
‘‘(1) IN GENERAL.—Amounts shall be deposited 
into the Fund from— 
‘‘(A) appropriations to the Fund for activi-
ties of the Fund; and 
‘‘(B) reimbursement from Federal agencies 
for the activities described in paragraphs (1), 
(2), and (4) of subsection (a), which shall only 
be from amounts made available in advance in 
appropriations Acts for such reimbursement.
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‘‘(2) EXPENDITURES.—Any expenditure from the 
Fund for the purposes of this subtitle shall be made 
from amounts available in the Fund from a deposit 
described in paragraph (1), and amounts available in 
the Fund shall be in addition to any other appropria-
tions available to the Cybersecurity and Infrastruc-
ture Security Agency for such purposes. 
‘‘(c) SUPPLEMENT NOT SUPPLANT.—Amounts in the 
Fund shall be used to supplement, not supplant, other Fed-
eral, State, local, or Tribal funding for activities in re-
sponse to a declaration. 
‘‘(d) REPORTING.—The Secretary shall require an en-
tity that receives amounts from the Fund to submit a report 
to the Secretary that details the specific use of the amounts. 
‘‘SEC. 2235. NOTIFICATION AND REPORTING. 
‘‘(a) NOTIFICATION.—Upon a declaration or renewal, 
the Secretary shall immediately notify the National Cyber 
Director and appropriate congressional committees and in-
clude in the notification— 
‘‘(1) an estimation of the planned duration of 
the declaration; 
‘‘(2) with respect to a notification of a declara-
tion, the reason for the declaration, including infor-
mation relating to the specific significant incident or 
imminent specific significant incident, including—
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† HR 4521 EAS 
‘‘(A) the operational or mission impact or 
anticipated impact of the specific significant in-
cident on Federal and non-Federal entities; 
‘‘(B) if known, the perpetrator of the spe-
cific significant incident; and 
‘‘(C) the scope of the Federal and non-Fed-
eral entities impacted or anticipated to be im-
pacted by the specific significant incident; 
‘‘(3) with respect to a notification of a renewal, 
the reason for the renewal; 
‘‘(4) justification as to why available resources, 
other than the Fund, are insufficient to respond to or 
mitigate the specific significant incident; and 
‘‘(5) a description of the coordination activities 
described in section 2233(b) that the Secretary antici-
pates the Director to perform. 
‘‘(b) REPORT TO CONGRESS.—Not later than 180 days 
after the date of a declaration or renewal, the Secretary 
shall submit to the appropriate congressional committees a 
report that includes— 
‘‘(1) the reason for the declaration or renewal, 
including information and intelligence relating to the 
specific significant incident that led to the declaration 
or renewal;
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† HR 4521 EAS 
‘‘(2) the use of any funds from the Fund for the 
purpose of responding to the incident or threat de-
scribed in paragraph (1); 
‘‘(3) a description of the actions, initiatives, and 
projects undertaken by the Department and State and 
local governments and public and private entities in 
responding to and recovering from the specific signifi-
cant incident described in paragraph (1); 
‘‘(4) an accounting of the specific obligations 
and outlays of the Fund; and 
‘‘(5) an analysis of— 
‘‘(A) the impact of the specific significant 
incident described in paragraph (1) on Federal 
and non-Federal entities; 
‘‘(B) the impact of the declaration or re-
newal on the response to, and recovery from, the 
specific significant incident described in para-
graph (1); and 
‘‘(C) the impact of the funds made available 
from the Fund as a result of the declaration or 
renewal on the recovery from, and response to, 
the specific significant incident described in 
paragraph (1).
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† HR 4521 EAS 
‘‘(c) CLASSIFICATION.—Each notification made under 
subsection (a) and each report submitted under subsection 
(b)— 
‘‘(1) shall be in an unclassified form with appro-
priate markings to indicate information that is ex-
empt from disclosure under section 552 of title 5, 
United States Code (commonly known as the ‘Free-
dom of Information Act’); and 
‘‘(2) may include a classified annex. 
‘‘(d) CONSOLIDATED REPORT.—The Secretary shall 
not be required to submit multiple reports under subsection 
(b) for multiple declarations or renewals if the Secretary 
determines that the declarations or renewals substantively 
relate to the same specific significant incident. 
‘‘(e) EXEMPTION.—The requirements of subchapter I 
of chapter 35 of title 44 (commonly known as the ‘Paper-
work Reduction Act’) shall not apply to the voluntary col-
lection of information by the Department during an inves-
tigation of, a response to, or an immediate post-response 
review of, the specific significant incident leading to a dec-
laration or renewal. 
‘‘SEC. 2236. RULE OF CONSTRUCTION. 
‘‘Nothing in this subtitle shall be construed to impair 
or limit the ability of the Director to carry out the author-
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† HR 4521 EAS 
ized activities of the Cybersecurity and Infrastructure Secu-
rity Agency. 
‘‘SEC. 2237. AUTHORIZATION OF APPROPRIATIONS. 
‘‘There are authorized to be appropriated to the Fund 
$20,000,000 for fiscal year 2022, which shall remain avail-
able until September 30, 2028. 
‘‘SEC. 2238. SUNSET. 
‘‘The authorities granted to the Secretary or the Direc-
tor under this subtitle shall expire on the date that is 7 
years after the date of enactment of this subtitle.’’. 
(b) CLERICAL AMENDMENT.—The table of contents in 
section 1(b) of the Homeland Security Act of 2002 (Public 
Law 107–296; 116 Stat. 2135) is amended by adding at 
the end the following: 
‘‘Subtitle C—Declaration of a Significant Incident 
‘‘Sec. 2231. Sense of Congress. 
‘‘Sec. 2232. Definitions. 
‘‘Sec. 2233. Declaration. 
‘‘Sec. 2234. Cyber response and recovery fund. 
‘‘Sec. 2235. Notification and reporting. 
‘‘Sec. 2236. Rule of construction. 
‘‘Sec. 2237. Authorization of appropriations. 
‘‘Sec. 2238. Sunset.’’. 
TITLE III—PERSONNEL 
Subtitle A—Facilitating Federal 
Employee Reskilling 
SEC. 4301. SHORT TITLE. 
This subtitle may be cited as the ‘‘Facilitating Federal 
Employee Reskilling Act’’.
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SEC. 4302. RESKILLING FEDERAL EMPLOYEES. 
(a) DEFINITIONS.—In this section: 
(1) AGENCY.—The term ‘‘agency’’ has the mean-
ing given the term ‘‘Executive agency’’ in section 105 
of title 5, United States Code. 
(2) APPROPRIATE COMMITTEES OF CONGRESS.— 
The term ‘‘appropriate committees of Congress’’ 
means— 
(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; and 
(B) the Committee on Oversight and Reform 
of the House of Representatives. 
(3) COMPETITIVE SERVICE.—The term ‘‘competi-
tive service’’ has the meaning given the term in sec-
tion 2102 of title 5, United States Code. 
(4) DIRECTOR.—The term ‘‘Director’’ means the 
Director of the Office of Personnel Management. 
(5) EMPLOYEE.—The term ‘‘employee’’ means an 
employee serving in a position in the competitive 
service or the excepted service. 
(6) EXCEPTED
SERVICE.—The term ‘‘excepted 
service’’ has the meaning given the term in section 
2103 of title 5, United States Code. 
(7) FEDERAL RESKILLING PROGRAM.—The term 
‘‘Federal reskilling program’’ means a program estab-
lished by the head of an agency or the Director to
1228 
† HR 4521 EAS 
provide employees with the technical skill or expertise 
that would qualify the employees to serve in a dif-
ferent position in the competitive service or the ex-
cepted service that requires such technical skill or ex-
pertise. 
(b) REQUIREMENTS.—With respect to a Federal 
reskilling program established by the head of an agency or 
by the Director before, on, or after the date of enactment 
of this Act, the agency head or the Director, as applicable, 
shall ensure that the Federal reskilling program— 
(1) is implemented in a manner that is in ac-
cordance with the bar on prohibited personnel prac-
tices under section 2302 of title 5, United States 
Code, and consistent with the merit system principles 
under section 2301 of title 5, United States Code, in-
cluding by using merit-based selection procedures for 
participation by employees in the Federal reskilling 
program; 
(2) includes appropriate limitations or restric-
tions associated with implementing the Federal 
reskilling program, which shall be consistent with any 
regulations prescribed by the Director under sub-
section (e); 
(3) provides that any new position to which an 
employee who participates in the Federal reskilling
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† HR 4521 EAS 
program is transferred will utilize the technical skill 
or expertise that the employee acquired by partici-
pating in the Federal reskilling program; 
(4) includes the option for an employee partici-
pating in the Federal reskilling program to return to 
the original position of the employee, or a similar po-
sition, particularly if the employee is unsuccessful in 
the position to which the employee transfers after 
completing the Federal reskilling program; 
(5) provides that an employee who successfully 
completes the Federal reskilling program and trans-
fers to a position that requires the technical skill or 
expertise provided through the Federal reskilling pro-
gram shall be entitled to have the grade of the posi-
tion held immediately before the transfer in a manner 
in accordance with section 5362 of title 5, United 
States Code; 
(6) provides that an employee serving in a posi-
tion in the excepted service may not transfer to a po-
sition in the competitive service solely by reason of 
the completion of the Federal reskilling program by 
the employee; and 
(7) includes a mechanism to track outcomes of 
the Federal reskilling program in accordance with the 
metrics established under subsection (c).
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(c) REPORTING AND METRICS.—Not later than 1 year 
after the date of enactment of this Act, the Director shall 
establish reporting requirements for, and standardized 
metrics and procedures for agencies to track outcomes of, 
Federal reskilling programs, which shall include, with re-
spect to each Federal reskilling program— 
(1) providing a summary of the Federal 
reskilling program; 
(2) collecting and reporting demographic and 
employment data with respect to employees who have 
applied for, participated in, or completed the Federal 
reskilling program; 
(3) attrition of employees who have completed 
the Federal reskilling program; and 
(4) any other measures or outcomes that the Di-
rector determines to be relevant. 
(d) GAO REPORT.—Not later than 3 years after the 
date of enactment of this Act, the Comptroller General of 
the United States shall conduct a comprehensive study of, 
and submit to Congress a report on, Federal reskilling pro-
grams that includes— 
(1) a summary of each Federal reskilling pro-
gram and methods by which each Federal reskilling 
program recruits, selects, and retrains employees;
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† HR 4521 EAS 
(2) an analysis of the accessibility of each Fed-
eral reskilling program for a diverse set of candidates; 
(3) an evaluation of the effectiveness, costs, and 
benefits of the Federal reskilling programs; and 
(4) 
recommendations 
to 
improve 
Federal 
reskilling programs to accomplish the goal of 
reskilling the Federal workforce. 
(e) REGULATIONS.—The Director— 
(1) not later than 1 year after the date of enact-
ment of this Act, shall prescribe regulations for the re-
porting requirements and metrics and procedures 
under subsection (c); 
(2) may prescribe additional regulations, as the 
Director determines necessary, to provide for require-
ments with respect to, and the implementation of, 
Federal reskilling programs; and 
(3) with respect to any regulation prescribed 
under this subsection, shall brief the appropriate com-
mittees of Congress with respect to the regulation not 
later than 30 days before the date on which the final 
version of the regulation is published. 
(f) RULE OF CONSTRUCTION.—Nothing in this section 
may be construed to require the head of an agency or the 
Director to establish a Federal reskilling program.
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† HR 4521 EAS 
(g) USE OF FUNDS.—Any Federal reskilling program 
established by the head of an agency or the Director shall 
be carried out using amounts otherwise made available to 
that agency head or the Director, as applicable. 
Subtitle B—Federal Rotational 
Cyber Workforce Program 
SEC. 4351. SHORT TITLE. 
This subtitle may be cited as the ‘‘Federal Rotational 
Cyber Workforce Program Act of 2021’’. 
SEC. 4352. DEFINITIONS. 
In this subtitle: 
(1) AGENCY.—The term ‘‘agency’’ has the mean-
ing given the term ‘‘Executive agency’’ in section 105 
of title 5, United States Code, except that the term 
does not include the Government Accountability Of-
fice. 
(2) COMPETITIVE SERVICE.—The term ‘‘competi-
tive service’’ has the meaning given that term in sec-
tion 2102 of title 5, United States Code. 
(3) COUNCILS.—The term ‘‘Councils’’ means— 
(A) the Chief Human Capital Officers 
Council established under section 1303 of the 
Chief Human Capital Officers Act of 2002 (5 
U.S.C. 1401 note); and
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† HR 4521 EAS 
(B) the Chief Information Officers Council 
established under section 3603 of title 44, United 
States Code. 
(4) CYBER
WORKFORCE
POSITION.—The term 
‘‘cyber workforce position’’ means a position identi-
fied as having information technology, cybersecurity, 
or other cyber-related functions under section 303 of 
the Federal Cybersecurity Workforce Assessment Act of 
2015 (5 U.S.C. 301 note). 
(5) DIRECTOR.—The term ‘‘Director’’ means the 
Director of the Office of Personnel Management. 
(6) EMPLOYEE.—The term ‘‘employee’’ has the 
meaning given the term in section 2105 of title 5, 
United States Code. 
(7) EMPLOYING AGENCY.—The term ‘‘employing 
agency’’ means the agency from which an employee is 
detailed to a rotational cyber workforce position. 
(8) EXCEPTED
SERVICE.—The term ‘‘excepted 
service’’ has the meaning given that term in section 
2103 of title 5, United States Code. 
(9) ROTATIONAL
CYBER
WORKFORCE
POSI-
TION.—The term ‘‘rotational cyber workforce posi-
tion’’ means a cyber workforce position with respect 
to which a determination has been made under sec-
tion 4353(a)(1).
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† HR 4521 EAS 
(10) ROTATIONAL
CYBER
WORKFORCE
PRO-
GRAM.—The term ‘‘rotational cyber workforce pro-
gram’’ means the program for the detail of employees 
among rotational cyber workforce positions at agen-
cies. 
(11) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Homeland Security. 
SEC. 4353. ROTATIONAL CYBER WORKFORCE POSITIONS. 
(a) DETERMINATION WITH RESPECT TO ROTATIONAL 
SERVICE.— 
(1) IN GENERAL.—The head of each agency may 
determine that a cyber workforce position in that 
agency is eligible for the rotational cyber workforce 
program, which shall not be construed to modify the 
requirement under section 4354(b)(3) that participa-
tion in the rotational cyber workforce program by an 
employee shall be voluntary. 
(2) NOTICE PROVIDED.—The head of an agency 
shall submit to the Director— 
(A) notice regarding any determination 
made by the head of the agency under paragraph 
(1); and 
(B) for each position with respect to which 
the head of the agency makes a determination
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† HR 4521 EAS 
under paragraph (1), the information required 
under subsection (b)(1). 
(b) PREPARATION OF LIST.—The Director, with assist-
ance from the Councils and the Secretary, shall develop a 
list of rotational cyber workforce positions that— 
(1) with respect to each such position, to the ex-
tent that the information does not disclose sensitive 
national security information, includes— 
(A) the title of the position; 
(B) the occupational series with respect to 
the position; 
(C) the grade level or work level with respect 
to the position; 
(D) the agency in which the position is lo-
cated; 
(E) the duty location with respect to the po-
sition; and 
(F) the major duties and functions of the 
position; and 
(2) shall be used to support the rotational cyber 
workforce program. 
(c) DISTRIBUTION OF LIST.—Not less frequently than 
annually, the Director shall distribute an updated list de-
veloped under subsection (b) to the head of each agency and 
other appropriate entities.
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† HR 4521 EAS 
SEC. 4354. ROTATIONAL CYBER WORKFORCE PROGRAM. 
(a) OPERATION PLAN.— 
(1) IN GENERAL.—Not later than 270 days after 
the date of enactment of this Act, and in consultation 
with the Councils, the Secretary, representatives of 
other agencies, and any other entity as the Director 
determines appropriate, the Director shall develop 
and issue a Federal Rotational Cyber Workforce Pro-
gram operation plan providing policies, processes, 
and procedures for a program for the detailing of em-
ployees among rotational cyber workforce positions at 
agencies, which may be incorporated into and imple-
mented through mechanisms in existence on the date 
of enactment of this Act. 
(2) UPDATING.—The Director may, in consulta-
tion with the Councils, the Secretary, and other enti-
ties as the Director determines appropriate, periodi-
cally update the operation plan developed and issued 
under paragraph (1). 
(b) REQUIREMENTS.—The operation plan developed 
and issued under subsection (a) shall, at a minimum— 
(1) identify agencies for participation in the ro-
tational cyber workforce program; 
(2) establish procedures for the rotational cyber 
workforce program, including—
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† HR 4521 EAS 
(A) any training, education, or career de-
velopment requirements associated with partici-
pation in the rotational cyber workforce pro-
gram; 
(B) any prerequisites or requirements for 
participation in the rotational cyber workforce 
program; and 
(C) appropriate rotational cyber workforce 
program performance measures, reporting re-
quirements, employee exit surveys, and other ac-
countability devices for the evaluation of the pro-
gram; 
(3) provide that participation in the rotational 
cyber workforce program by an employee shall be vol-
untary; 
(4) provide that an employee shall be eligible to 
participate in the rotational cyber workforce program 
if the head of the employing agency of the employee, 
or a designee of the head of the employing agency of 
the employee, approves of the participation of the em-
ployee; 
(5) provide that the detail of an employee to a 
rotational cyber workforce position under the rota-
tional cyber workforce program shall be on a nonre-
imbursable basis;
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† HR 4521 EAS 
(6) provide that agencies may agree to partner 
to ensure that the employing agency of an employee 
who participates in the rotational cyber workforce 
program is able to fill the position vacated by the em-
ployee; 
(7) require that an employee detailed to a rota-
tional cyber workforce position under the rotational 
cyber workforce program, upon the end of the period 
of service with respect to the detail, shall be entitled 
to return to the position held by the employee, or an 
equivalent position, in the employing agency of the 
employee without loss of pay, seniority, or other 
rights or benefits to which the employee would have 
been entitled had the employee not been detailed; 
(8) provide that discretion with respect to the as-
signment of an employee under the rotational cyber 
workforce program shall remain with the employing 
agency of the employee; 
(9) require that an employee detailed to a rota-
tional cyber workforce position under the rotational 
cyber workforce program in an agency that is not the 
employing agency of the employee shall have all the 
rights that would be available to the employee if the 
employee were detailed under a provision of law other 
than this subtitle from the employing agency to the
1239 
† HR 4521 EAS 
agency in which the rotational cyber workforce posi-
tion is located; 
(10) provide that participation by an employee 
in the rotational cyber workforce program shall not 
constitute a change in the conditions of the employ-
ment of the employee; and 
(11) provide that an employee participating in 
the rotational cyber workforce program shall receive 
performance evaluations relating to service in the ro-
tational cyber workforce program in a participating 
agency that are— 
(A) prepared by an appropriate officer, su-
pervisor, or management official of the employ-
ing agency, acting in coordination with the su-
pervisor at the agency in which the employee is 
performing service in the rotational cyber work-
force position; 
(B) based on objectives identified in the op-
eration plan with respect to the employee; and 
(C) based in whole or in part on the con-
tribution of the employee to the agency in which 
the employee performed such service, as commu-
nicated from that agency to the employing agen-
cy of the employee.
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† HR 4521 EAS 
(c) PROGRAM REQUIREMENTS FOR ROTATIONAL SERV-
ICE.— 
(1) IN
GENERAL.—An employee serving in a 
cyber workforce position in an agency may, with the 
approval of the head of the agency, submit an appli-
cation for detail to a rotational cyber workforce posi-
tion that appears on the list developed under section 
4353(b). 
(2) OPM APPROVAL FOR CERTAIN POSITIONS.— 
An employee serving in a position in the excepted 
service may only be selected for a rotational cyber 
workforce position that is in the competitive service 
with the prior approval of the Office of Personnel 
Management, in accordance with section 300.301 of 
title 5, Code of Federal Regulations, or any successor 
thereto. 
(3) SELECTION AND TERM.— 
(A) SELECTION.—The head of an agency 
shall select an employee for a rotational cyber 
workforce position under the rotational cyber 
workforce program in a manner that is con-
sistent with the merit system principles under 
section 2301(b) of title 5, United States Code. 
(B) TERM.—Except as provided in sub-
paragraph (C), and notwithstanding section
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† HR 4521 EAS 
3341(b) of title 5, United States Code, a detail 
to a rotational cyber workforce position shall be 
for a period of not less than 180 days and not 
more than 1 year. 
(C) EXTENSION.—The Chief Human Cap-
ital Officer of the agency to which an employee 
is detailed under the rotational cyber workforce 
program may extend the period of a detail de-
scribed in subparagraph (B) for a period of 60 
days unless the Chief Human Capital Officer of 
the employing agency of the employee objects to 
that extension. 
(4) WRITTEN SERVICE AGREEMENTS.— 
(A) IN
GENERAL.—The detail of an em-
ployee to a rotational cyber workforce position 
shall be contingent upon the employee entering 
into a written service agreement with the em-
ploying agency under which the employee is re-
quired to complete a period of employment with 
the employing agency following the conclusion of 
the detail that is equal in length to the period of 
the detail. 
(B) OTHER
AGREEMENTS
AND
OBLIGA-
TIONS.—A written service agreement under sub-
paragraph (A) shall not supersede or modify the
1242 
† HR 4521 EAS 
terms or conditions of any other service agree-
ment entered into by the employee under any 
other authority or relieve the obligations between 
the employee and the employing agency under 
such a service agreement. Nothing in this sub-
paragraph prevents an employing agency from 
terminating a service agreement entered into 
under any other authority under the terms of 
such agreement or as required by law or regula-
tion. 
SEC. 4355. REPORTING BY GAO. 
Not later than the end of the third fiscal year after 
the fiscal year in which the operation plan under section 
4354(a) is issued, the Comptroller General of the United 
States shall submit to Congress a report assessing the oper-
ation and effectiveness of the rotational cyber workforce pro-
gram, which shall address, at a minimum— 
(1) the extent to which agencies have partici-
pated in the rotational cyber workforce program, in-
cluding whether the head of each such participating 
agency has— 
(A) identified positions within the agency 
that are rotational cyber workforce positions;
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† HR 4521 EAS 
(B) had employees from other participating 
agencies serve in positions described in subpara-
graph (A); and 
(C) had employees of the agency request to 
serve in rotational cyber workforce positions 
under the rotational cyber workforce program in 
participating agencies, including a description 
of how many such requests were approved; and 
(2) the experiences of employees serving in rota-
tional cyber workforce positions under the rotational 
cyber workforce program, including an assessment 
of— 
(A) the period of service; 
(B) the positions (including grade level and 
occupational series or work level) held by em-
ployees before completing service in a rotational 
cyber workforce position under the rotational 
cyber workforce program; 
(C) the extent to which each employee who 
completed service in a rotational cyber workforce 
position under the rotational cyber workforce 
program achieved a higher skill level, or attained 
a skill level in a different area, with respect to 
information technology, cybersecurity, or other 
cyber-related functions; and
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† HR 4521 EAS 
(D) the extent to which service in rotational 
cyber workforce positions has affected intra-agen-
cy and interagency integration and coordination 
of cyber practices, functions, and personnel man-
agement. 
SEC. 4356. SUNSET. 
Effective 5 years after the date of enactment of this 
Act, this subtitle is repealed. 
TITLE IV—OTHER MATTERS 
Subtitle A—Ensuring Security of 
Unmanned Aircraft Systems 
SEC. 4401. SHORT TITLE. 
This subtitle may be cited as the ‘‘American Security 
Drone Act of 2021’’. 
SEC. 4402. DEFINITIONS. 
In this subtitle: 
(1) COVERED FOREIGN ENTITY.—The term ‘‘cov-
ered foreign entity’’ means an entity included on a 
list developed and maintained by the Federal Acquisi-
tion Security Council. This list will include entities 
in the following categories: 
(A) An entity included on the Consolidated 
Screening List. 
(B) 
Any 
entity 
that 
is 
subject 
to 
extrajudicial direction from a foreign govern-
1245 
† HR 4521 EAS 
ment, as determined by the Secretary of Home-
land Security. 
(C) Any entity the Secretary of Homeland 
Security, in coordination with the Director of 
National Intelligence and the Secretary of De-
fense, determines poses a national security risk. 
(D) Any entity domiciled in the People’s 
Republic of China or subject to influence or con-
trol by the Government of the People’s Republic 
of China or the Communist Party of the People’s 
Republic of China, as determined by the Sec-
retary of Homeland Security. 
(E) Any subsidiary or affiliate of an entity 
described in subparagraphs (A) through (D). 
(2) COVERED UNMANNED AIRCRAFT SYSTEM.— 
The term ‘‘covered unmanned aircraft system’’ has the 
meaning given the term ‘‘unmanned aircraft system’’ 
in section 44801 of title 49, United States Code. 
SEC. 4403. PROHIBITION ON PROCUREMENT OF COVERED 
UNMANNED AIRCRAFT SYSTEMS FROM COV-
ERED FOREIGN ENTITIES. 
(a) IN GENERAL.—Except as provided under sub-
sections (b) though (f), the head of an executive agency may 
not procure any covered unmanned aircraft system that are 
manufactured or assembled by a covered foreign entity,
1246 
† HR 4521 EAS 
which includes associated elements (consisting of commu-
nication links and the components that control the un-
manned aircraft) that are required for the operator to oper-
ate safely and efficiently in the national airspace system. 
The Federal Acquisition Security Council, in coordination 
with the Secretary of Transportation, shall develop and up-
date a list of associated elements. 
(b) EXEMPTION.—The Secretary of Homeland Secu-
rity, the Secretary of Defense, and the Attorney General are 
exempt from the restriction under subsection (a) if the oper-
ation or procurement— 
(1) is for the sole purposes of research, evalua-
tion, training, testing, or analysis for— 
(A) electronic warfare; 
(B) information warfare operations; 
(C) development of UAS or counter-UAS 
technology; 
(D) counterterrorism or counterintelligence 
activities; or 
(E) Federal criminal or national security 
investigations, including forensic examinations; 
and 
(2) is required in the national interest of the 
United States.
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† HR 4521 EAS 
(c) FEDERAL AVIATION ADMINISTRATION CENTER OF 
EXCELLENCE FOR UNMANNED AIRCRAFT SYSTEMS EXEMP-
TION.—The Secretary of Transportation, in consultation 
with the Secretary of Homeland Security, is exempt from 
the restriction under subsection (a) if the operation or pro-
curement is for the sole purposes of research, evaluation, 
training, testing, or analysis for the Federal Aviation Ad-
ministration’s Alliance for System Safety of UAS through 
Research Excellence (ASSURE) Center of Excellence (COE) 
for Unmanned Aircraft Systems. 
(d) NATIONAL TRANSPORTATION SAFETY BOARD EX-
EMPTION.—The National Transportation Safety Board 
(NTSB), in consultation with the Secretary of Homeland 
Security, is exempt from the restriction under subsection 
(a) if the operation or procurement is necessary for the sole 
purpose of conducting safety investigations. 
(e) NATIONAL OCEANIC ATMOSPHERIC ADMINISTRA-
TION EXEMPTION.—The Administrator of the National Oce-
anic Atmospheric Administration (NOAA), in consultation 
with the Secretary of Homeland Security, is exempt from 
the restriction under subsection (a) if the operation or pro-
curement is necessary for the sole purpose of marine or at-
mospheric science or management.
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† HR 4521 EAS 
(f) WAIVER.—The head of an executive agency may 
waive the prohibition under subsection (a) on a case-by- 
case basis— 
(1) with the approval of the Secretary of Home-
land Security or the Secretary of Defense; and 
(2) upon notification to Congress. 
SEC. 4404. PROHIBITION ON OPERATION OF COVERED UN-
MANNED AIRCRAFT SYSTEMS FROM COVERED 
FOREIGN ENTITIES. 
(a) PROHIBITION.— 
(1) IN GENERAL.—Beginning on the date that is 
2 years after the date of the enactment of this Act, no 
Federal department or agency may operate a covered 
unmanned aircraft system manufactured or assembled 
by a covered foreign entity. 
(2) APPLICABILITY TO CONTRACTED SERVICES.— 
The prohibition under paragraph (1) applies to any 
covered unmanned aircraft systems that are being 
used by any executive agency through the method of 
contracting for the services of covered unmanned air-
craft systems. 
(b) EXEMPTION.—The Secretary of Homeland Secu-
rity, the Secretary of Defense, and the Attorney General are 
exempt from the restriction under subsection (a) if the oper-
ation or procurement—
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† HR 4521 EAS 
(1) is for the sole purposes of research, evalua-
tion, training, testing, or analysis for— 
(A) electronic warfare; 
(B) information warfare operations; 
(C) development of UAS or counter-UAS 
technology; 
(D) counterterrorism or counterintelligence 
activities; or 
(E) Federal criminal or national security 
investigations, including forensic examinations; 
and 
(2) is required in the national interest of the 
United States. 
(c) FEDERAL AVIATION ADMINISTRATION CENTER OF 
EXCELLENCE FOR UNMANNED AIRCRAFT SYSTEMS EXEMP-
TION.—The Secretary of Transportation, in consultation 
with the Secretary of Homeland Security, is exempt from 
the restriction under subsection (a) if the operation or pro-
curement is for the sole purposes of research, evaluation, 
training, testing, or analysis for the Federal Aviation Ad-
ministration’s Alliance for System Safety of UAE through 
Research Excellence (ASSURE) Center of Excellence (COE) 
for Unmanned Aircraft Systems. 
(d) NATIONAL TRANSPORTATION SAFETY BOARD EX-
EMPTION.—The National Transportation Safety Board
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(NTSB), in consultation with the Secretary of Homeland 
Security, is exempt from the restriction under subsection 
(a) if the operation or procurement is necessary for the sole 
purpose of conducting safety investigations. 
(e) NATIONAL OCEANIC ATMOSPHERIC ADMINISTRA-
TION EXEMPTION.—The Administrator of the National Oce-
anic Atmospheric Administration (NOAA), in consultation 
with the Secretary of Homeland Security, is exempt from 
the restriction under subsection (a) if the operation or pro-
curement is necessary for the sole purpose of marine or at-
mospheric science or management. 
(f) WAIVER.—The head of an executive agency may 
waive the prohibition under subsection (a) on a case-by- 
case basis— 
(1) with the approval of the Secretary of Home-
land Security or the Secretary of Defense; and 
(2) upon notification to Congress. 
(g) REGULATIONS AND GUIDANCE.—Not later than 
180 days after the date of the enactment of this Act, the 
Secretary of Homeland Security shall prescribe regulations 
or guidance to implement this section.
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SEC. 4405. PROHIBITION ON USE OF FEDERAL FUNDS FOR 
PURCHASES AND OPERATION OF COVERED 
UNMANNED AIRCRAFT SYSTEMS FROM COV-
ERED FOREIGN ENTITIES. 
(a) IN GENERAL.—Beginning on the date that is 2 
years after the date of the enactment of this Act, except as 
provided in subsection (b), no Federal funds awarded 
through a contract, grant, or cooperative agreement, or oth-
erwise made available may be used— 
(1) to purchase a covered unmanned aircraft sys-
tem, or a system to counter unmanned aircraft sys-
tems, that is manufactured or assembled by a covered 
foreign entity; or 
(2) in connection with the operation of such a 
drone or unmanned aircraft system. 
(b) EXEMPTION.—A Federal department or agency is 
exempt from the restriction under subsection (a) if— 
(1) the contract, grant, or cooperative agreement 
was awarded prior to the date of the enactment of 
this Act; or 
(2) the operation or procurement is for the sole 
purposes of research, evaluation, training, testing, or 
analysis, as determined by the Secretary of Homeland 
Security, the Secretary of Defense, or the Attorney 
General, for— 
(A) electronic warfare;
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(B) information warfare operations; 
(C) development of UAS or counter-UAS 
technology; 
(D) counterterrorism or counterintelligence 
activities; or 
(E) Federal criminal or national security 
investigations, including forensic examinations; 
or 
(F) the safe integration of UAS in the na-
tional airspace (as determined in consultation 
with the Secretary of Transportation); and 
(3) is required in the national interest of the 
United States. 
(c) WAIVER.—The head of an executive agency may 
waive the prohibition under subsection (a) on a case-by- 
case basis— 
(1) with the approval of the Secretary of Home-
land Security or the Secretary of Defense; and 
(2) upon notification to Congress. 
(d) REGULATIONS.—Not later than 180 days after the 
date of the enactment of this Act, the Federal Acquisition 
Regulatory Council shall prescribe regulations or guidance, 
as necessary, to implement the requirements of this section 
pertaining to Federal contracts.
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SEC. 4406. PROHIBITION ON USE OF GOVERNMENT-ISSUED 
PURCHASE CARDS TO PURCHASE COVERED 
UNMANNED AIRCRAFT SYSTEMS FROM COV-
ERED FOREIGN ENTITIES. 
Effective immediately, Government-issued Purchase 
Cards may not be used to procure any covered unmanned 
aircraft system from a covered foreign entity. 
SEC. 4407. MANAGEMENT OF EXISTING INVENTORIES OF 
COVERED UNMANNED AIRCRAFT SYSTEMS 
FROM COVERED FOREIGN ENTITIES. 
(a) IN GENERAL.—Effective immediately, all executive 
agencies must account for existing inventories of covered 
unmanned aircraft systems manufactured or assembled by 
a covered foreign entity in their personal property account-
ing systems, regardless of the original procurement cost, or 
the purpose of procurement due to the special monitoring 
and accounting measures necessary to track the items’ capa-
bilities. 
(b) CLASSIFIED TRACKING.—Due to the sensitive na-
ture of missions and operations conducted by the United 
States Government, inventory data related to covered un-
manned aircraft systems manufactured or assembled by a 
covered foreign entity may be tracked at a classified level. 
(c) EXCEPTIONS.—The Department of Defense and De-
partment of Homeland Security may exclude from the full 
inventory process, covered unmanned aircraft systems that
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are deemed expendable due to mission risk such as recovery 
issues or that are one-time-use covered unmanned aircraft 
due to requirements and low cost. 
SEC. 4408. COMPTROLLER GENERAL REPORT. 
Not later than 275 days after the date of the enactment 
of this Act, the Comptroller General of the United States 
shall submit to Congress a report on the amount of commer-
cial off-the-shelf drones and covered unmanned aircraft sys-
tems procured by Federal departments and agencies from 
covered foreign entities. 
SEC. 4409. GOVERNMENT-WIDE POLICY FOR PROCUREMENT 
OF UNMANNED AIRCRAFT SYSTEMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Director of the Office 
of Management and Budget, in coordination with the De-
partment of Homeland Security, Department of Transpor-
tation, the Department of Justice, and other Departments 
as determined by the Director of the Office of Management 
and Budget, and in consultation with the National Insti-
tute of Standards and Technology, shall establish a govern-
ment-wide policy for the procurement of UAS— 
(1) for non-Department of Defense and non-in-
telligence community operations; and 
(2) through grants and cooperative agreements 
entered into with non-Federal entities.
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(b) INFORMATION SECURITY.—The policy developed 
under subsection (a) shall include the following specifica-
tions, which to the extent practicable, shall be based on in-
dustry standards and technical guidance from the National 
Institute of Standards and Technology, to address the risks 
associated with processing, storing and transmitting Fed-
eral information in a UAS: 
(1) Protections to ensure controlled access of 
UAS. 
(2) Protecting software, firmware, and hardware 
by ensuring changes to UAS are properly managed, 
including by ensuring UAS can be updated using a 
secure, controlled, and configurable mechanism. 
(3) Cryptographically securing sensitive col-
lected, stored, and transmitted data, including proper 
handling of privacy data and other controlled unclas-
sified information. 
(4) Appropriate safeguards necessary to protect 
sensitive information, including during and after use 
of UAS. 
(5) Appropriate data security to ensure that 
data is not transmitted to or stored in non-approved 
locations. 
(6) The ability to opt out of the uploading, 
downloading, or transmitting of data that is not re-
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quired by law or regulation and an ability to choose 
with whom and where information is shared when it 
is required. 
(c) REQUIREMENT.—The policy developed under sub-
section (a) shall reflect an appropriate risk-based approach 
to information security related to use of UAS. 
(d) REVISION OF ACQUISITION REGULATIONS.—Not 
later than 180 days after the date on which the policy re-
quired under subsection (a) is issued— 
(1) the Federal Acquisition Regulatory Council 
shall revise the Federal Acquisition Regulation, as 
necessary, to implement the policy; and 
(2) any Federal department or agency or other 
Federal entity not subject to, or not subject solely to, 
the Federal Acquisition Regulation shall revise appli-
cable policy, guidance, or regulations, as necessary, to 
implement the policy. 
(e) EXEMPTION.—In developing the policy required 
under subsection (a), the Director of the Office of Manage-
ment and Budget shall incorporate an exemption to the pol-
icy for the following reasons: 
(1) In the case of procurement for the purposes 
of training, testing, or analysis for— 
(A) electronic warfare; or 
(B) information warfare operations.
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(2) In the case of researching UAS technology, 
including testing, evaluation, research, or develop-
ment of technology to counter UAS. 
(3) In the case of a head of the procuring depart-
ment or agency determining, in writing, that no 
product that complies with the information security 
requirements described in subsection (b) is capable of 
fulfilling mission critical performance requirements, 
and such determination— 
(A) may not be delegated below the level of 
the Deputy Secretary of the procuring depart-
ment or agency; 
(B) shall specify— 
(i) the quantity of end items to which 
the waiver applies, the procurement value of 
which may not exceed $50,000 per waiver; 
and 
(ii) the time period over which the 
waiver applies, which shall not exceed 3 
years; 
(C) shall be reported to the Office of Man-
agement and Budget following issuance of such a 
determination; and 
(D) not later than 30 days after the date on 
which the determination is made, shall be pro-
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vided to the Committee on Homeland Security 
and Governmental Affairs of the Senate and the 
Committee on Oversight and Reform of the 
House of Representatives. 
SEC. 4410. STUDY. 
(a) INDEPENDENT STUDY.—Not later than 3 years 
after the date of the enactment of this Act, the Director of 
the Office of Management and Budget shall seek to enter 
into a contract with a federally funded research and devel-
opment center under which the center will conduct a study 
of— 
(1) the current and future unmanned aircraft 
system global and domestic market; 
(2) the ability of the unmanned aircraft system 
domestic market to keep pace with technological ad-
vancements across the industry; 
(3) the ability of domestically made unmanned 
aircraft systems to meet the network security and 
data protection requirements of the national security 
enterprise; 
(4) the extent to which unmanned aircraft sys-
tem component parts, such as the parts described in 
section 4403, are made domestically; and
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(5) an assessment of the economic impact, in-
cluding cost, of excluding the use of foreign-made 
UAS for use across the Federal Government. 
(b) SUBMISSION TO OMB.—Upon completion of the 
study in subsection (a), the federally funded research and 
development center shall submit the study to the Director 
of the Office of Management and Budget. 
(c) SUBMISSION TO CONGRESS.—Not later than 30 
days after the date on which the Director of the Office of 
Management and Budget receives the study under sub-
section (b), the Director shall submit the study to— 
(1) the Committee on Homeland Security and 
Governmental Affairs and the Select Committee on 
Intelligence of the Senate; and 
(2) the Committee on Homeland Security and 
the Committee on Oversight and Reform and the Per-
manent Select Committee on Intelligence of the House 
of Representatives. 
SEC. 4411. SUNSET. 
Sections 4403, 4404, and 4405 shall cease to have effect 
on the date that is 5 years after the date of the enactment 
of this Act.
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Subtitle B—No TikTok on 
Government Devices 
SEC. 4431. SHORT TITLE. 
This subtitle may be cited as the ‘‘No TikTok on Gov-
ernment Devices Act’’. 
SEC. 4432. PROHIBITION ON THE USE OF TIKTOK. 
(a) DEFINITIONS.—In this section— 
(1) the term ‘‘covered application’’ means the so-
cial networking service TikTok or any successor ap-
plication or service developed or provided by 
ByteDance Limited or an entity owned by ByteDance 
Limited; 
(2) the term ‘‘executive agency’’ has the meaning 
given that term in section 133 of title 41, United 
States Code; and 
(3) the term ‘‘information technology’’ has the 
meaning given that term in section 11101 of title 40, 
United States Code. 
(b) PROHIBITION ON THE USE OF TIKTOK.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of the enactment of this Act, the Director of 
the Office of Management and Budget, in consultation 
with the Administrator of General Services, the Direc-
tor of the Cybersecurity and Infrastructure Security 
Agency, the Director of National Intelligence, and the
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Secretary of Defense, and consistent with the informa-
tion security requirements under subchapter II of 
chapter 35 of title 44, United States Code, shall de-
velop standards and guidelines for executive agencies 
requiring the removal of any covered application from 
information technology. 
(2) NATIONAL SECURITY AND RESEARCH EXCEP-
TIONS.—The standards and guidelines developed 
under paragraph (1) shall include— 
(A) exceptions for law enforcement activi-
ties, national security interests and activities, 
and security researchers; and 
(B) for any authorized use of a covered ap-
plication under an exception, requirements for 
executive agencies to develop and document risk 
mitigation actions for such use. 
Subtitle C—National Risk 
Management 
SEC. 4461. SHORT TITLE. 
This subtitle may be cited as the ‘‘National Risk Man-
agement Act of 2021’’. 
SEC. 4462. NATIONAL RISK MANAGEMENT CYCLE. 
(a) IN GENERAL.—Subtitle A of title XXII of the 
Homeland Security Act of 2002 (6 U.S.C. 651 et seq.) is 
amended by adding at the end the following:
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‘‘SEC. 2218. NATIONAL RISK MANAGEMENT CYCLE. 
‘‘(a) NATIONAL CRITICAL FUNCTIONS DEFINED.—In 
this section, the term ‘national critical functions’ means the 
functions of government and the private sector so vital to 
the United States that their disruption, corruption, or dys-
function would have a debilitating effect on security, na-
tional economic security, national public health or safety, 
or any combination thereof. 
‘‘(b) NATIONAL RISK MANAGEMENT CYCLE.— 
‘‘(1) RISK IDENTIFICATION AND ASSESSMENT.— 
‘‘(A) IN GENERAL.—The Secretary, acting 
through the Director, shall establish a recurring 
process by which to identify, assess, and 
prioritize risks to critical infrastructure, consid-
ering both cyber and physical threats, the associ-
ated 
likelihoods, 
vulnerabilities, 
and 
con-
sequences, and the resources necessary to address 
them. 
‘‘(B) CONSULTATION.—In establishing the 
process required under subparagraph (A), the 
Secretary shall consult with, and request and 
collect information to support analysis from, 
Sector Risk Management Agencies, critical infra-
structure owners and operators, the Assistant to 
the President for National Security Affairs, the
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Assistant to the President for Homeland Secu-
rity, and the National Cyber Director. 
‘‘(C) PUBLICATION.—Not later than 180 
days after the date of enactment of this section, 
the Secretary shall publish in the Federal Reg-
ister procedures for the process established under 
subparagraph (A), subject to any redactions the 
Secretary determines are necessary to protect 
classified or other sensitive information. 
‘‘(D) REPORT.—The Secretary shall submit 
to the President, the Committee on Homeland 
Security and Governmental Affairs of the Sen-
ate, and the Committee on Homeland Security of 
the House of Representatives a report on the 
risks identified by the process established under 
subparagraph (A)— 
‘‘(i) not later than 1 year after the 
date of enactment of this section; and 
‘‘(ii) not later than 1 year after the 
date on which the Secretary submits a peri-
odic 
evaluation 
described 
in 
section 
9002(b)(2) of title XC of division H of the 
William M. (Mac) Thornberry National De-
fense Authorization Act for Fiscal Year 
2021 (Public Law 116–283).
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‘‘(iii) identify and outline current and 
proposed national-level actions, programs, 
and efforts to be taken to address the risks 
identified; 
‘‘(iv) identify the Federal departments 
or agencies responsible for leading each na-
tional-level action, program, or effort and 
the relevant critical infrastructure sectors 
for each; and 
‘‘(v) request any additional authorities 
necessary to successfully execute the strat-
egy. 
‘‘(C) FORM.—Each strategy delivered under 
subparagraph (A) shall be unclassified, but may 
contain a classified annex. 
‘‘(3) CONGRESSIONAL BRIEFING.—Not later than 
1 year after the date on which the President delivers 
the first strategy required under paragraph (2)(A), 
and every year thereafter, the Secretary, in coordina-
tion with Sector Risk Management Agencies, shall 
brief the appropriate congressional committees on— 
‘‘(A) the national risk management cycle 
activities undertaken pursuant to the strategy; 
and
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‘‘(B) the amounts and timeline for funding 
that the Secretary has determined would be nec-
essary to address risks and successfully execute 
the full range of activities proposed by the strat-
egy.’’. 
(b) TECHNICAL AND CONFORMING AMENDMENT.—The 
table of contents in section 1(b) of the Homeland Security 
Act of 2002 (Public Law 107–296; 116 Stat. 2135) is 
amended by inserting after the item relating to section 2217 
the following: 
‘‘Sec. 2218. National risk management cycle.’’. 
Subtitle D—Safeguarding 
American Innovation 
SEC. 4491. SHORT TITLE. 
This subtitle may be cited as the ‘‘Safeguarding Amer-
ican Innovation Act’’. 
SEC. 4492. DEFINITIONS. 
In this subtitle: 
(1) FEDERAL SCIENCE AGENCY.—The term ‘‘Fed-
eral science agency’’ means any Federal department 
or agency to which more than $100,000,000 in basic 
and applied research and development funds were ap-
propriated for the previous fiscal year. 
(2) RESEARCH AND DEVELOPMENT.— 
(A) IN GENERAL.—The term ‘‘research and 
development’’ means all research activities, both
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basic and applied, and all development activi-
ties. 
(B) DEVELOPMENT.—The term ‘‘develop-
ment’’ means experimental development. 
(C) EXPERIMENTAL
DEVELOPMENT.—The 
term ‘‘experimental development’’ means creative 
and systematic work, drawing upon knowledge 
gained from research and practical experience, 
which— 
(i) is directed toward the production of 
new products or processes or improving ex-
isting products or processes; and 
(ii) like research, will result in gaining 
additional knowledge. 
(D) RESEARCH.—The term ‘‘research’’— 
(i) means a systematic study directed 
toward fuller scientific knowledge or under-
standing of the subject studied; and 
(ii) includes activities involving the 
training of individuals in research tech-
niques if such activities— 
(I) utilize the same facilities as 
other research and development activi-
ties; and
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(II) are not included in the in-
struction function. 
SEC. 4493. FEDERAL RESEARCH SECURITY COUNCIL. 
(a) IN GENERAL.—Subtitle V of title 31, United States 
Code, is amended by adding at the end the following: 
‘‘CHAPTER 79—FEDERAL RESEARCH 
SECURITY COUNCIL 
‘‘Sec. 
‘‘7901. Definitions. 
‘‘7902. Federal Research Security Council establishment and membership. 
‘‘7903. Functions and authorities. 
‘‘7904. Strategic plan. 
‘‘7905. Annual report. 
‘‘7906. Requirements for Executive agencies. 
‘‘§ 7901. Definitions 
‘‘In this chapter: 
‘‘(1) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘appropriate congressional commit-
tees’ means— 
‘‘(A) the Committee on Homeland Security 
and Governmental Affairs of the Senate; 
‘‘(B) the Committee on Commerce, Science, 
and Transportation of the Senate; 
‘‘(C) the Select Committee on Intelligence of 
the Senate; 
‘‘(D) the Committee on Foreign Relations of 
the Senate; 
‘‘(E) the Committee on Armed Services of 
the Senate;
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‘‘(F) the Committee on Health, Education, 
Labor, and Pensions of the Senate; 
‘‘(G) the Committee on Oversight and Re-
form of the House of Representatives; 
‘‘(H) the Committee on Homeland Security 
of the House of Representatives; 
‘‘(I) the Committee on Energy and Com-
merce of the House of Representatives; 
‘‘(J) the Permanent Select Committee on 
Intelligence of the House of Representatives; 
‘‘(K) the Committee on Foreign Affairs of 
the House of Representatives; 
‘‘(L) the Committee on Armed Services of 
the House of Representatives; and 
‘‘(M) the Committee on Education and 
Labor of the House of Representatives. 
‘‘(2) COUNCIL.—The term ‘Council’ means the 
Federal Research Security Council established under 
section 7902(a). 
‘‘(3) EXECUTIVE AGENCY.—The term ‘Executive 
agency’ has the meaning given that term in section 
105 of title 5. 
‘‘(4) FEDERAL RESEARCH SECURITY RISK.—The 
term ‘Federal research security risk’ means the risk 
posed by malign state actors and other persons to the
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security and integrity of research and development 
conducted using research and development funds 
awarded by Executive agencies. 
‘‘(5) INSIDER.—The term ‘insider’ means any 
person with authorized access to any United States 
Government resource, including personnel, facilities, 
information, research, equipment, networks, or sys-
tems. 
‘‘(6) INSIDER
THREAT.—The term ‘insider 
threat’ means the threat that an insider will use his 
or her authorized access (wittingly or unwittingly) to 
harm the national and economic security of the 
United States or negatively affect the integrity of a 
Federal agency’s normal processes, including dam-
aging the United States through espionage, sabotage, 
terrorism, unauthorized disclosure of national secu-
rity information or nonpublic information, a destruc-
tive act (which may include physical harm to another 
in the workplace), or through the loss or degradation 
of departmental resources, capabilities, and functions. 
‘‘(7) RESEARCH AND DEVELOPMENT.— 
‘‘(A) IN GENERAL.—The term ‘research and 
development’ means all research activities, both 
basic and applied, and all development activi-
ties.
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‘‘(B) DEVELOPMENT.—The term ‘develop-
ment’ means experimental development. 
‘‘(C) EXPERIMENTAL
DEVELOPMENT.—The 
term ‘experimental development’ means creative 
and systematic work, drawing upon knowledge 
gained from research and practical experience, 
which— 
‘‘(i) is directed toward the production 
of new products or processes or improving 
existing products or processes; and 
‘‘(ii) like research, will result in gain-
ing additional knowledge. 
‘‘(D) RESEARCH.—The term ‘research’— 
‘‘(i) means a systematic study directed 
toward fuller scientific knowledge or under-
standing of the subject studied; and 
‘‘(ii) includes activities involving the 
training of individuals in research tech-
niques if such activities— 
‘‘(I) utilize the same facilities as 
other research and development activi-
ties; and 
‘‘(II) are not included in the in-
struction function.
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‘‘(8) UNITED STATES RESEARCH COMMUNITY.— 
The 
term 
‘United 
States 
research 
community’ 
means— 
‘‘(A) research and development centers of 
Executive agencies; 
‘‘(B) private research and development cen-
ters in the United States, including for profit 
and nonprofit research institutes; 
‘‘(C) research and development centers at 
institutions of higher education (as defined in 
section 101(a) of the Higher Education Act of 
1965 (20 U.S.C. 1001(a))); 
‘‘(D) research and development centers of 
States, United States territories, Indian tribes, 
and municipalities; 
‘‘(E) government-owned, contractor-operated 
United States Government research and develop-
ment centers; and 
‘‘(F) any person conducting federally fund-
ed research or receiving Federal research grant 
funding. 
‘‘§ 7902. Federal Research Security Council establish-
ment and membership 
‘‘(a) ESTABLISHMENT.—There is established, in the 
Office of Management and Budget, a Federal Research Se-
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curity Council, which shall develop federally funded re-
search and development grant making policy and manage-
ment guidance to protect the national and economic secu-
rity interests of the United States. 
‘‘(b) MEMBERSHIP.— 
‘‘(1) IN GENERAL.—The following agencies shall 
be represented on the Council: 
‘‘(A) The Office of Management and Budget. 
‘‘(B) The Office of Science and Technology 
Policy. 
‘‘(C) The Department of Defense. 
‘‘(D) The Department of Homeland Secu-
rity. 
‘‘(E) The Office of the Director of National 
Intelligence. 
‘‘(F) The Department of Justice. 
‘‘(G) The Department of Energy. 
‘‘(H) The Department of Commerce. 
‘‘(I) The Department of Health and Human 
Services. 
‘‘(J) The Department of State. 
‘‘(K) The Department of Transportation. 
‘‘(L) The National Aeronautics and Space 
Administration. 
‘‘(M) The National Science Foundation.
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‘‘(N) The Department of Education. 
‘‘(O) The Small Business Administration. 
‘‘(P) The Council of Inspectors General on 
Integrity and Efficiency. 
‘‘(Q) Other Executive agencies, as deter-
mined by the Chairperson of the Council. 
‘‘(2) LEAD REPRESENTATIVES.— 
‘‘(A) DESIGNATION.—Not later than 45 
days after the date of the enactment of the Safe-
guarding American Innovation Act, the head of 
each agency represented on the Council shall des-
ignate a representative of that agency as the lead 
representative of the agency on the Council. 
‘‘(B) FUNCTIONS.—The lead representative 
of an agency designated under subparagraph (A) 
shall ensure that appropriate personnel, includ-
ing leadership and subject matter experts of the 
agency, are aware of the business of the Council. 
‘‘(c) CHAIRPERSON.— 
‘‘(1) DESIGNATION.—Not later than 45 days 
after the date of the enactment of the Safeguarding 
American Innovation Act, the Director of the Office 
of Management and Budget shall designate a senior 
level official from the Office of Management and 
Budget to serve as the Chairperson of the Council.
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‘‘(2) FUNCTIONS.—The Chairperson shall per-
form functions that include— 
‘‘(A) subject to subsection (d), developing a 
schedule for meetings of the Council; 
‘‘(B) designating Executive agencies to be 
represented on the Council under subsection 
(b)(1)(Q); 
‘‘(C) in consultation with the lead rep-
resentative of each agency represented on the 
Council, developing a charter for the Council; 
and 
‘‘(D) not later than 7 days after completion 
of the charter, submitting the charter to the ap-
propriate congressional committees. 
‘‘(3) LEAD SCIENCE ADVISOR.—The Director of 
the Office of Science and Technology Policy shall des-
ignate a senior level official to be the lead science ad-
visor to the Council for purposes of this chapter. 
‘‘(4) LEAD SECURITY ADVISOR.—The Director of 
the National Counterintelligence and Security Center 
shall designate a senior level official from the Na-
tional Counterintelligence and Security Center to be 
the lead security advisor to the Council for purposes 
of this chapter.
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‘‘(d) MEETINGS.—The Council shall meet not later 
than 60 days after the date of the enactment of the Safe-
guarding American Innovation Act and not less frequently 
than quarterly thereafter. 
‘‘§ 7903. Functions and authorities 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) IMPLEMENTING.—The term ‘implementing’ 
means working with the relevant Federal agencies, 
through existing processes and procedures, to enable 
those agencies to put in place and enforce the meas-
ures described in this section. 
‘‘(2) UNIFORM
APPLICATION
PROCESS.—The 
term ‘uniform application process’ means a process 
employed by Federal science agencies to maximize the 
collection of information regarding applicants and 
applications, as determined by the Council. 
‘‘(b) IN GENERAL.—The Chairperson of the Council 
shall consider the missions and responsibilities of Council 
members in determining the lead agencies for Council func-
tions. The Council shall perform the following functions: 
‘‘(1) Developing and implementing, across all 
Executive agencies that award research and develop-
ment grants, awards, and contracts, a uniform appli-
cation process for grants in accordance with sub-
section (c).
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‘‘(5) Identifying, as appropriate, Executive agen-
cies to provide— 
‘‘(A) shared services, such as support for 
conducting Federal research security risk assess-
ments, activities to mitigate such risks, and over-
sight and investigations with respect to grants 
awarded by Executive agencies; and 
‘‘(B) common contract solutions to support 
the verification of the identities of persons par-
ticipating in federally funded research and devel-
opment. 
‘‘(6) Identifying and issuing guidance, in ac-
cordance with subsection (e) and in coordination with 
the National Insider Threat Task Force established by 
Executive Order 13587 (50 U.S.C. 3161 note) for ex-
panding the scope of Executive agency insider threat 
programs, including the safeguarding of research and 
development from exploitation, compromise, or other 
unauthorized disclosure, taking into account risk lev-
els and the distinct needs, missions, and systems of 
each such agency. 
‘‘(7) Identifying and issuing guidance for devel-
oping compliance and oversight programs for Execu-
tive agencies to ensure that research and development 
grant recipients accurately report conflicts of interest
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and conflicts of commitment in accordance with sub-
section (c)(1). Such programs shall include an assess-
ment of— 
‘‘(A) a grantee’s support from foreign 
sources and affiliations, appointments, or par-
ticipation in talent programs with foreign fund-
ing institutions or laboratories; and 
‘‘(B) the impact of such support and affili-
ations, appointments, or participation in talent 
programs on United States national security 
and economic interests. 
‘‘(8) Providing guidance to Executive agencies 
regarding appropriate application of consequences for 
violations of disclosure requirements. 
‘‘(9) Developing and implementing a cross-agen-
cy policy and providing guidance related to the use 
of digital persistent identifiers for individual re-
searchers supported by, or working on, any Federal 
research grant with the goal to enhance transparency 
and security, while reducing administrative burden 
for researchers and research institutions. 
‘‘(10) Engaging with the United States research 
community in conjunction with the National Science 
and Technology Council and the National Academies 
Science, Technology and Security Roundtable created
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under section 1746 of the National Defense Authoriza-
tion Act for Fiscal Year 2020 (Public Law 116–92; 
42 U.S.C. 6601 note) in performing the functions de-
scribed in paragraphs (1), (2), and (3) and with re-
spect to issues relating to Federal research security 
risks. 
‘‘(11) Carrying out such other functions, con-
sistent with Federal law, that are necessary to reduce 
Federal research security risks. 
‘‘(c) REQUIREMENTS FOR UNIFORM GRANT APPLICA-
TION PROCESS.—In developing the uniform application 
process for Federal research and development grants re-
quired under subsection (b)(1), the Council shall— 
‘‘(1) ensure that the process— 
‘‘(A) requires principal investigators, co- 
principal investigators, and key personnel asso-
ciated with the proposed Federal research or de-
velopment grant project— 
‘‘(i) to disclose biographical informa-
tion, all affiliations, including any foreign 
military, foreign government-related organi-
zations, and foreign-funded institutions, 
and all current and pending support, in-
cluding from foreign institutions, foreign
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governments, or foreign laboratories, and all 
support received from foreign sources; and 
‘‘(ii) to certify the accuracy of the re-
quired disclosures under penalty of perjury; 
and 
‘‘(B) uses a machine-readable application 
form to assist in identifying fraud and ensuring 
the eligibility of applicants; 
‘‘(2) design the process— 
‘‘(A) to reduce the administrative burden on 
persons applying for Federal research and devel-
opment funding; and 
‘‘(B) to promote information sharing across 
the United States research community, while 
safeguarding sensitive information; and 
‘‘(3) complete the process not later than 1 year 
after the date of the enactment of the Safeguarding 
American Innovation Act. 
‘‘(d) REQUIREMENTS
FOR INFORMATION SHARING 
CRITERIA.—In identifying or developing criteria and pro-
cedures for sharing information with respect to Federal re-
search security risks under subsection (b)(3), the Council 
shall ensure that such criteria address, at a minimum— 
‘‘(1) the information to be shared;
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‘‘(2) the circumstances under which sharing is 
mandated or voluntary; 
‘‘(3) the circumstances under which it is appro-
priate for an Executive agency to rely on information 
made available through such sharing in exercising the 
responsibilities and authorities of the agency under 
applicable laws relating to the award of grants; 
‘‘(4) the procedures for protecting intellectual 
capital that may be present in such information; and 
‘‘(5) appropriate privacy protections for persons 
involved in Federal research and development. 
‘‘(e) REQUIREMENTS FOR INSIDER THREAT PROGRAM 
GUIDANCE.—In identifying or developing guidance with re-
spect to insider threat programs under subsection (b)(6), 
the Council shall ensure that such guidance provides for, 
at a minimum— 
‘‘(1) such programs— 
‘‘(A) to deter, detect, and mitigate insider 
threats; and 
‘‘(B) to leverage counterintelligence, secu-
rity, information assurance, and other relevant 
functions and resources to identify and counter 
insider threats; and 
‘‘(2) the development of an integrated capability 
to monitor and audit information for the detection
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and 
mitigation 
of 
insider 
threats, 
including 
through— 
‘‘(A) monitoring user activity on computer 
networks controlled by Executive agencies; 
‘‘(B) providing employees of Executive 
agencies with awareness training with respect to 
insider threats and the responsibilities of em-
ployees to report such threats; 
‘‘(C) gathering information for a centralized 
analysis, reporting, and response capability; and 
‘‘(D) information sharing to aid in tracking 
the risk individuals may pose while moving 
across programs and affiliations; 
‘‘(3) the development and implementation of 
policies and procedures under which the insider 
threat program of an Executive agency accesses, 
shares, and integrates information and data derived 
from offices within the agency and shares insider 
threat information with the executive agency research 
sponsors; 
‘‘(4) the designation of senior officials with au-
thority to provide management, accountability, and 
oversight of the insider threat program of an Execu-
tive agency and to make resource recommendations to 
the appropriate officials; and
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‘‘(5) such additional guidance as is necessary to 
reflect the distinct needs, missions, and systems of 
each Executive agency. 
‘‘(f) ISSUANCE OF WARNINGS RELATING TO RISKS AND 
VULNERABILITIES
IN
INTERNATIONAL
SCIENTIFIC
CO-
OPERATION.— 
‘‘(1) IN GENERAL.—The Council, in conjunction 
with the lead security advisor designated under sec-
tion 7902(c)(4), shall establish a process for inform-
ing members of the United States research community 
and the public, through the issuance of warnings de-
scribed in paragraph (2), of potential risks and 
vulnerabilities in international scientific cooperation 
that may undermine the integrity and security of the 
United States research community or place at risk 
any federally funded research and development. 
‘‘(2) CONTENT.—A warning described in this 
paragraph shall include, to the extent the Council 
considers appropriate, a description of— 
‘‘(A) activities by the national government, 
local governments, research institutions, or uni-
versities of a foreign country— 
‘‘(i) to exploit, interfere, or undermine 
research and development by the United 
States research community; or
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‘‘(ii) 
to 
misappropriate 
scientific 
knowledge resulting from federally funded 
research and development; 
‘‘(B) efforts by strategic competitors to ex-
ploit the research enterprise of a foreign country 
that may place at risk— 
‘‘(i) the science and technology of that 
foreign country; or 
‘‘(ii) federally funded research and de-
velopment; and 
‘‘(C) practices within the research enterprise 
of a foreign country that do not adhere to the 
United States scientific values of openness, 
transparency, reciprocity, integrity, and merit- 
based competition. 
‘‘(g) EXCLUSION ORDERS.—To reduce Federal re-
search security risk, the Interagency Suspension and Debar-
ment Committee shall provide quarterly reports to the Di-
rector of the Office of Management and Budget and the Di-
rector of the Office of Science and Technology Policy that 
detail— 
‘‘(1) the number of ongoing investigations by 
Council Members related to Federal research security 
that may result, or have resulted, in agency pre-notice
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letters, 
suspensions, 
proposed 
debarments, 
and 
debarments; 
‘‘(2) Federal agencies’ performance and compli-
ance with interagency suspensions and debarments; 
‘‘(3) efforts by the Interagency Suspension and 
Debarment Committee to mitigate Federal research 
security risk; 
‘‘(4) proposals for developing a unified Federal 
policy on suspensions and debarments; and 
‘‘(5) other current suspension and debarment re-
lated issues. 
‘‘(h) SAVINGS PROVISION.—Nothing in this section 
may be construed— 
‘‘(1) to alter or diminish the authority of any 
Federal agency; or 
‘‘(2) to alter any procedural requirements or 
remedies that were in place before the date of the en-
actment of the Safeguarding American Innovation 
Act. 
‘‘§ 7904. Annual report 
‘‘Not later than November 15 of each year, the Chair-
person of the Council shall submit a report to the appro-
priate congressional committees that describes the activities 
of the Council during the preceding fiscal year.
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‘‘§ 7905. Requirements for Executive agencies 
‘‘(a) IN GENERAL.—The head of each Executive agency 
on the Council shall be responsible for— 
‘‘(1) assessing Federal research security risks 
posed by persons participating in federally funded re-
search and development; 
‘‘(2) avoiding or mitigating such risks, as appro-
priate and consistent with the standards, guidelines, 
requirements, and practices identified by the Council 
under section 7903(b); 
‘‘(3) prioritizing Federal research security risk 
assessments conducted under paragraph (1) based on 
the applicability and relevance of the research and de-
velopment to the national security and economic com-
petitiveness of the United States; and 
‘‘(4) ensuring that initiatives impacting Feder-
ally funded research grant making policy and man-
agement to protect the national and economic security 
interests of the United States are integrated with the 
activities of the Council. 
‘‘(b) INCLUSIONS.—The responsibility of the head of an 
Executive agency for assessing Federal research security 
risk described in subsection (a) includes— 
‘‘(1) developing an overall Federal research secu-
rity risk management strategy and implementation 
plan and policies and processes to guide and govern
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† HR 4521 EAS 
Federal research security risk management activities 
by the Executive agency; 
‘‘(2) integrating Federal research security risk 
management practices throughout the lifecycle of the 
grant programs of the Executive agency; 
‘‘(3) sharing relevant information with other Ex-
ecutive agencies, as determined appropriate by the 
Council in a manner consistent with section 7903; 
and 
‘‘(4) reporting on the effectiveness of the Federal 
research security risk management strategy of the Ex-
ecutive agency consistent with guidance issued by the 
Office of Management and Budget and the Council.’’. 
(b) CLERICAL AMENDMENT.—The table of chapters at 
the beginning of title 31, United States Code, is amended 
by inserting after the item relating to chapter 77 the fol-
lowing: 
‘‘79. Federal Research Security Council ...................................... 7901.’’. 
SEC. 4494. FEDERAL GRANT APPLICATION FRAUD. 
(a) IN GENERAL.—Chapter 47 of title 18, United 
States Code, is amended by adding at the end the following: 
‘‘§ 1041. Federal grant application fraud 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) FEDERAL
AGENCY.—The term ‘Federal 
agency’ has the meaning given the term ‘agency’ in 
section 551 of title 5, United States Code.
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‘‘(2) FEDERAL
GRANT.—The term ‘Federal 
grant’— 
‘‘(A) means a grant awarded by a Federal 
agency; 
‘‘(B) includes a subgrant awarded by a 
non-Federal entity to carry out a Federal grant 
program; and 
‘‘(C) does not include— 
‘‘(i) direct United States Government 
cash assistance to an individual; 
‘‘(ii) a subsidy; 
‘‘(iii) a loan; 
‘‘(iv) a loan guarantee; or 
‘‘(v) insurance. 
‘‘(3) FEDERAL GRANT APPLICATION.—The term 
‘Federal grant application’ means an application for 
a Federal grant. 
‘‘(4) FOREIGN COMPENSATION.—The term ‘for-
eign compensation’ means a title, monetary com-
pensation, access to a laboratory or other resource, or 
other benefit received from— 
‘‘(A) a foreign government; 
‘‘(B) a foreign government institution; or 
‘‘(C) a foreign public enterprise.
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of the Inspector General Act of 1978 (5 
U.S.C. App.)) or a designated Federal enti-
ty (as defined in section 8G(a) of the In-
spector General Act of 1978 (5 U.S.C. 
App.)); and 
‘‘(ii) the Office of Inspector General, or 
similar office, of a State or unit of local 
government. 
‘‘(9) OUTSIDE COMPENSATION.—The term ‘out-
side compensation’ means any compensation, re-
source, or support (regardless of monetary value) 
made available to the applicant in support of, or re-
lated to, any research endeavor, including a title, re-
search grant, cooperative agreement, contract, institu-
tional award, access to a laboratory, or other re-
source, including materials, travel compensation, or 
work incentives. 
‘‘(b) PROHIBITION.—It shall be unlawful for any indi-
vidual to knowingly— 
‘‘(1) prepare or submit a Federal grant applica-
tion that fails to disclose the receipt of any outside 
compensation, including foreign compensation, by the 
individual;
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† HR 4521 EAS 
‘‘(2) forge, counterfeit, or otherwise falsify a doc-
ument for the purpose of obtaining a Federal grant; 
or 
‘‘(3) prepare, submit, or assist in the prepara-
tion or submission of a Federal grant application or 
document in connection with a Federal grant appli-
cation that— 
‘‘(A) contains a false statement; 
‘‘(B) contains a material misrepresentation; 
‘‘(C) has no basis in law or fact; or 
‘‘(D) fails to disclose a material fact. 
‘‘(c) EXCEPTION.—Subsection (b) does not apply to an 
activity— 
‘‘(1) carried out in connection with a lawfully 
authorized investigative, protective, or intelligence ac-
tivity of— 
‘‘(A) a law enforcement agency; or 
‘‘(B) a Federal intelligence agency; or 
‘‘(2) authorized under chapter 224. 
‘‘(d) PENALTY.—Any individual who violates sub-
section (b)— 
‘‘(1) shall be fined in accordance with this title, 
imprisoned for not more than 5 years, or both; and 
‘‘(2) shall be prohibited from receiving a Federal 
grant during the 5-year period beginning on the date
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† HR 4521 EAS 
on which a sentence is imposed on the individual 
under paragraph (1).’’. 
(b) CLERICAL AMENDMENT.—The analysis for chapter 
47 of title 18, United States Code, is amended by adding 
at the end the following: 
‘‘1041. Federal grant application fraud.’’. 
SEC. 4495. RESTRICTING THE ACQUISITION OF EMERGING 
TECHNOLOGIES BY CERTAIN ALIENS. 
(a) GROUNDS OF INADMISSIBILITY.—The Secretary of 
State may determine that an alien is inadmissible if the 
Secretary determines such alien is seeking to enter the 
United States to knowingly acquire sensitive or emerging 
technologies to undermine national security interests of the 
United States by benefitting an adversarial foreign govern-
ment’s security or strategic capabilities. 
(b) RELEVANT FACTORS.—To determine if an alien is 
inadmissible under subsection (a), the Secretary of State 
shall— 
(1) take account of information and analyses rel-
evant to implementing subsection (a) from the Office 
of the Director of National Intelligence, the Depart-
ment of Health and Human Services, the Department 
of Defense, the Department of Homeland Security, the 
Department of Energy, the Department of Commerce, 
and other appropriate Federal agencies;
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† HR 4521 EAS 
(2) take account of the continual expert assess-
ments of evolving sensitive or emerging technologies 
that foreign adversaries are targeting; 
(3) take account of relevant information con-
cerning the foreign person’s employment or collabora-
tion, to the extent known, with— 
(A) foreign military and security related or-
ganizations that are adversarial to the United 
States; 
(B) foreign institutions involved in the theft 
of United States research; 
(C) entities involved in export control viola-
tions or the theft of intellectual property; 
(D) a government that seeks to undermine 
the integrity and security of the United States 
research community; or 
(E) other associations or collaborations that 
pose a national security threat based on intel-
ligence assessments; and 
(4) weigh the proportionality of risks and the 
factors listed in paragraphs (1) through (3). 
(c) REPORTING REQUIREMENT.—Not later than 180 
days after the date of the enactment of this Act, and semi- 
annually thereafter until the sunset date set forth in sub-
section (e), the Secretary of State, in coordination with the
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† HR 4521 EAS 
Director of National Intelligence, the Director of the Office 
of Science and Technology Policy, the Secretary of Home-
land Security, the Secretary of Defense, the Secretary of 
Energy, the Secretary of Commerce, and the heads of other 
appropriate Federal agencies, shall submit a report to the 
Committee on the Judiciary of the Senate, the Committee 
on Foreign Relations of the Senate, the Committee on 
Homeland Security and Governmental Affairs of the Sen-
ate, the Committee on the Judiciary of the House of Rep-
resentatives, the Committee on Foreign Affairs of the House 
of Representatives, and the Committee on Oversight and Re-
form of the House of Representatives that identifies— 
(1) any criteria, if relevant used to describe the 
aliens to which the grounds of inadmissibility de-
scribed in subsection (a) may apply; 
(2) the number of individuals determined to be 
inadmissible under subsection (a), including the na-
tionality of each such individual and the reasons for 
each determination of inadmissibility; and 
(3) the number of days from the date of the con-
sular interview until a final decision is issued for 
each application for a visa considered under this sec-
tion, listed by applicants’ country of citizenship and 
relevant consulate.
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† HR 4521 EAS 
(d) CLASSIFICATION
OF REPORT.—Each report re-
quired under subsection (c) shall be submitted, to the extent 
practicable, in an unclassified form, but may be accom-
panied by a classified annex. 
(e) SUNSET.—This section shall cease to be effective on 
the date that is 2 years after the date of the enactment of 
this Act. 
SEC. 4496. MACHINE READABLE VISA DOCUMENTS. 
(a) MACHINE-READABLE DOCUMENTS.—Not later than 
1 year after the date of the enactment of this Act, the Sec-
retary of State shall— 
(1) use a machine-readable visa application 
form; and 
(2) make available documents submitted in sup-
port of a visa application in a machine readable for-
mat to assist in— 
(A) identifying fraud; 
(B) conducting lawful law enforcement ac-
tivities; and 
(C) determining the eligibility of applicants 
for a visa under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.). 
(b) WAIVER.—The Secretary of State may waive the 
requirement under subsection (a) by providing to Congress, 
not later than 30 days before such waiver takes effect—
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† HR 4521 EAS 
(1) a detailed explanation for why the waiver is 
being issued; and 
(2) a timeframe for the implementation of the re-
quirement under subsection (a). 
(c) REPORT.—Not later than 45 days after date of the 
enactment of this Act, the Secretary of State shall submit 
a report to the Committee on Homeland Security and Gov-
ernmental Affairs of the Senate, the Committee on Com-
merce, Science, and Transportation of the Senate, the Select 
Committee on Intelligence of the Senate, the Committee on 
Foreign Relations of the Senate; the Committee on Over-
sight and Reform of the House of Representatives, the Com-
mittee on Homeland Security of the House of Representa-
tives, the Committee on Energy and Commerce of the House 
of Representatives, the Permanent Select Committee on In-
telligence of the House of Representatives, and the Com-
mittee on Foreign Affairs of the House of Representatives 
that— 
(1) describes how supplementary documents pro-
vided by a visa applicant in support of a visa appli-
cation are stored and shared by the Department of 
State with authorized Federal agencies; 
(2) identifies the sections of a visa application 
that are machine-readable and the sections that are 
not machine-readable;
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† HR 4521 EAS 
(3) provides cost estimates, including personnel 
costs and a cost-benefit analysis for adopting different 
technologies, including optical character recognition, 
for— 
(A) making every element of a visa applica-
tion, and documents submitted in support of a 
visa application, machine-readable; and 
(B) ensuring that such system— 
(i) protects personally-identifiable in-
formation; and 
(ii) permits the sharing of visa infor-
mation with Federal agencies in accordance 
with existing law; and 
(4) includes an estimated timeline for completing 
the implementation of subsection (a). 
SEC. 4497. CERTIFICATIONS REGARDING ACCESS TO EX-
PORT CONTROLLED TECHNOLOGY IN EDU-
CATIONAL AND CULTURAL EXCHANGE PRO-
GRAMS. 
Section 102(b)(5) of the Mutual Educational and Cul-
tural Exchange Act of 1961 (22 U.S.C. 2452(b)(5)) is 
amended to read as follows: 
‘‘(5) promoting and supporting medical, sci-
entific, cultural, and educational research and devel-
opment by developing exchange programs for foreign
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† HR 4521 EAS 
researchers and scientists, while protecting tech-
nologies regulated by export control laws important to 
the national security and economic interests of the 
United States, by requiring— 
‘‘(A) the sponsor to certify to the Depart-
ment of State that the sponsor, after reviewing 
all regulations related to the Export Controls Act 
of 2018 (50 U.S.C. 4811 et seq.) and the Arms 
Export Control Act (22 U.S.C. 2751 et seq.), has 
determined that— 
‘‘(i) a license is not required from the 
Department of Commerce or the Depart-
ment of State to release such technology or 
technical data to the exchange visitor; or 
‘‘(ii)(I) a license is required from the 
Department of Commerce or the Depart-
ment of State to release such technology or 
technical data to the exchange visitor; and 
‘‘(II) the sponsor will prevent access to 
the controlled technology or technical data 
by the exchange visitor until the sponsor— 
‘‘(aa) has received the required li-
cense or other authorization to release 
it to the visitor; and
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† HR 4521 EAS 
‘‘(bb) has provided a copy of such 
license or authorization to the Depart-
ment of State; and 
‘‘(B) if the sponsor maintains export con-
trolled technology or technical data, the sponsor 
to submit to the Department of State the spon-
sor’s plan to prevent unauthorized export or 
transfer of any controlled items, materials, infor-
mation, or technology at the sponsor organiza-
tion or entities associated with a sponsor’s ad-
ministration of the exchange visitor program.’’. 
SEC. 4498. PRIVACY AND CONFIDENTIALITY. 
Nothing in this subtitle may be construed as affecting 
the rights and requirements provided in section 552a of title 
5, United States Code (commonly known as the ‘‘Privacy 
Act of 1974’’) or subchapter III of chapter 35 of title 44, 
United States Code (commonly known as the ‘‘Confidential 
Information Protection and Statistical Efficiency Act of 
2018’’). 
DIVISION E—MEETING THE 
CHINA CHALLENGE ACT OF 2021 
SEC. 5001. SHORT TITLE; TABLE OF CONTENTS. 
(a) SHORT TITLE.—This division may be cited as the 
‘‘Meeting the China Challenge Act of 2021’’.
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† HR 4521 EAS 
(b) TABLE OF CONTENTS.—The table of contents for 
this division is as follows: 
Sec. 5001. Short title; table of contents. 
TITLE I—FINANCIAL SERVICES 
Sec. 5101. Findings on transparency and disclosure; sense of Congress. 
Sec. 5102. Establishment of interagency task force to address Chinese market ma-
nipulation in the United States. 
Sec. 5103. Expansion of study and strategy on money laundering by the People’s 
Republic of China to include risks of contributing to corruption. 
Sec. 5104. Statement of policy to encourage the development of a corporate code 
of conduct for countering malign influence in the private sector. 
TITLE II—PROTECTING UNITED STATES NATIONAL SECURITY 
Subtitle A—Sanctions With Respect to People’s Republic of China 
Sec. 5201. Definitions. 
Sec. 5202. Use of sanctions authorities with respect to the People’s Republic of 
China. 
Sec. 5203. Imposition of sanctions with respect to activities of the People’s Repub-
lic of China undermining cybersecurity, including cyber attacks 
on United States Government or private sector networks. 
Sec. 5204. Imposition of sanctions with respect to theft of trade secrets of United 
States persons. 
Sec. 5205. Implementation; penalties. 
Sec. 5206. Exceptions. 
Subtitle B—Export Control Review And Other Matters 
Sec. 5211. Review and controls on export of items with critical capabilities to en-
able human rights abuses. 
Sec. 5212. Prohibition on reviews by Committee on Foreign Investment in the 
United States of certain foreign gifts to and contracts with insti-
tutions of higher education. 
Sec. 5213. Conforming amendments to Treasury positions established by Foreign 
Investment Risk Review Modernization Act of 2018. 
TITLE III—REPORTS 
Sec. 5301. Review of the presence of Chinese entities in United States capital 
markets. 
Sec. 5302. Report on malign activity involving Chinese state-owned enterprises. 
Sec. 5303. Report on use and applicability of sanctions to Chinese officials 
complicit in human rights violations and violations of United 
States sanctions with respect to Hong Kong. 
Sec. 5304. Report on domestic shortfalls of industrial resources, materials, and 
critical technology items essential to the national defense. 
Sec. 5305. Report on implementation of process for exchange of information be-
tween Committee on Foreign Investment in the United States 
and allies and partners. 
Sec. 5306. Report on economic and national security implications of changes to 
cross-border payment and financial messaging systems.
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† HR 4521 EAS 
Sec. 5307. Report on development and utilization of dual-use technologies by the 
Government of the People’s Republic of China. 
Sec. 5308. Report on currency issues with respect to the People’s Republic of 
China. 
Sec. 5309. Report on exposure of the United States to the financial system of the 
People’s Republic of China. 
Sec. 5310. Report on investment reciprocity between the United States and the 
People’s Republic of China. 
TITLE I—FINANCIAL SERVICES 
SEC. 5101. FINDINGS ON TRANSPARENCY AND DISCLOSURE; 
SENSE OF CONGRESS. 
(a) FINDINGS.—Congress finds the following: 
(1) More than 2,000,000 corporations, limited li-
ability companies, and other similar entities are 
formed under the laws of the States each year and 
some of those 2,000,000 entities are formed by persons 
outside of the United States, including by persons in 
the People’s Republic of China. 
(2) Most or all States do not require information 
about the beneficial owners of the corporations, lim-
ited liability companies, or other similar entities 
formed under the laws of the State. 
(3) Malign actors seek to conceal their ownership 
of corporations, limited liability companies, or other 
similar entities in the United States to facilitate il-
licit activity, including money laundering, the fi-
nancing of terrorism, proliferation financing, serious 
tax fraud, human and drug trafficking, counter-
feiting, piracy, securities fraud, financial fraud, eco-
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† HR 4521 EAS 
nomic espionage, theft of intellectual property, and 
acts of foreign corruption, which harm the national 
security interests of the United States and allies of 
the United States. 
(4) National security, intelligence, and law en-
forcement investigations have consistently been im-
peded by an inability to reliably and promptly obtain 
information identifying the persons that ultimately 
own corporations, limited liability companies, or 
other similar entities suspected of engaging in illicit 
activity, as documented in reports and testimony by 
officials from the Department of Justice, the Depart-
ment of Homeland Security, the Department of the 
Treasury, the Government Accountability Office, and 
other agencies. 
(5) In the National Strategy for Combating Ter-
rorist and Other Illicit Financing, issued in 2020, the 
Department of the Treasury found the following: 
‘‘Misuse of legal entities to hide a criminal beneficial 
owner or illegal source of funds continues to be a com-
mon, if not the dominant, feature of illicit finance 
schemes, especially those involving money laundering, 
predicate offences, tax evasion, and proliferation fi-
nancing.’’.
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(6) Federal legislation, including the Anti-Money 
Laundering Act of 2020 (division F of Public Law 
116–283) and the Corporate Transparency Act (title 
LXIV of division F of Public Law 116–283), com-
bating the crime of money laundering and providing 
for the collection of beneficial ownership information 
by the Financial Crimes Enforcement Network of the 
Department of the Treasury (referred to in this sec-
tion as ‘‘FinCEN’’) with respect to corporations, lim-
ited liability companies, or other similar entities 
formed under the laws of the States has recently been 
enacted to— 
(A) set a clear Federal standard for incor-
poration practices; 
(B) better enable critical national security, 
intelligence, and law enforcement efforts to iden-
tify and counter money laundering, the financ-
ing of terrorism, and other illicit activity; and 
(C) bring the United States into compliance 
with international standards with respect to 
anti-money laundering and countering the fi-
nancing of terrorism. 
(7) Providing beneficial ownership information 
to FinCEN is especially important in cases in which 
foreign firms, including those in the People’s Republic
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† HR 4521 EAS 
of China or subject to the jurisdiction of the People’s 
Republic of China, seek to acquire United States 
firms and the valuable intellectual property of those 
firms in a manner that poses a threat to the national 
security of the United States. 
(b) SENSE OF CONGRESS.—It is the sense of Congress 
that the Secretary of the Treasury should implement the 
Anti-Money Laundering Act of 2020 (division F of Public 
Law 116–283), including the Corporate Transparency Act 
(title LXIV of division F of Public Law 116–283), within 
the timelines required under those Acts, including the ele-
ments of those Acts designed to enhance the ability of finan-
cial services providers to adopt and implement anti-money 
laundering best practices, mitigate burdens on small busi-
nesses, ensure the security of beneficial ownership informa-
tion as provided for by those Acts, and address specific con-
cerns relating to abuses of anonymous shell companies by 
Chinese entities and the Government of the People’s Repub-
lic of China. 
SEC. 5102. ESTABLISHMENT OF INTERAGENCY TASK FORCE 
TO ADDRESS CHINESE MARKET MANIPULA-
TION IN THE UNITED STATES. 
(a) IN GENERAL.—The Department of Justice, the 
Federal Trade Commission, the Department of the Treas-
ury, and such other Federal agencies as the President deter-
1306 
† HR 4521 EAS 
mines appropriate shall establish a joint interagency task 
force to investigate allegations of systemic market manipu-
lation and other potential violations of antitrust and com-
petition laws in the United States by companies established 
in the People’s Republic of China, including allegations of 
efforts to illegally capture market share, fix or manipulate 
prices, and control the supply of goods in critical industries 
of the United States, including— 
(1) the pharmaceutical and medical devices in-
dustry; 
(2) the renewable energy industry; 
(3) the steel and aluminum industries; and 
(4) such other industries as the task force con-
siders appropriate. 
(b) REPORT.—Not later than 180 days after the date 
of enactment of this Act, the President shall provide to the 
appropriate congressional committees— 
(1) a briefing on the progress of the interagency 
task force and its findings as described in subsection 
(a); and 
(2) recommendations to the committees on poten-
tial amendments to antitrust and competition laws in 
the United States that would strengthen the ability of 
United States antitrust enforcement agencies to bring
1307 
† HR 4521 EAS 
actions against anticompetitive business practices by 
Chinese companies. 
(c) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Banking, Housing, and 
Urban Affairs, the Committee on Foreign Relations, 
the Committee on Finance, the Committee on the Ju-
diciary, and the Committee on Commerce, Science, 
and Transportation of the Senate; and 
(2) the Committee on Financial Services, the 
Committee on Foreign Affairs, the Committee on 
Ways and Means, the Committee on the Judiciary, 
and the Committee on Energy and Commerce of the 
House of Representatives. 
SEC. 5103. EXPANSION OF STUDY AND STRATEGY ON 
MONEY LAUNDERING BY THE PEOPLE’S RE-
PUBLIC OF CHINA TO INCLUDE RISKS OF 
CONTRIBUTING TO CORRUPTION. 
(a) IN GENERAL.—Section 6507 of the Anti-Money 
Laundering Act of 2020 (division F of Public Law 116– 
283) is amended— 
(1) in subsection (a)— 
(A) in paragraph (3), by striking ‘‘; and’’ 
and inserting a semicolon;
1308 
† HR 4521 EAS 
(B) in paragraph (4), by striking the period 
at the end and inserting ‘‘; and’’; and 
(C) by adding at the end the following: 
‘‘(5) the ways in which such increased illicit fi-
nance risks may contribute to corruption involving 
Chinese firms and a strategy to combat such corrup-
tion.’’; and 
(2) in subsection (b), by inserting ‘‘and corrup-
tion’’ after ‘‘activities’’. 
(b) EFFECTIVE DATE.—The amendments made by sub-
section (a) shall take effect as if included in the enactment 
of the Anti-Money Laundering Act of 2020 (division F of 
Public Law 116–283). 
SEC. 5104. STATEMENT OF POLICY TO ENCOURAGE THE DE-
VELOPMENT OF A CORPORATE CODE OF CON-
DUCT FOR COUNTERING MALIGN INFLUENCE 
IN THE PRIVATE SECTOR. 
It is the policy of the United States— 
(1) to support business practices that are open, 
transparent, respect workers’ rights, and are environ-
mentally conscious; 
(2) to reaffirm the commitment of the United 
States to economic freedom, which is the bedrock of 
the United States economy and enables anyone in the
1312 
† HR 4521 EAS 
public of China to ensure that they can enjoy full 
economic freedom; 
(F) to ensure that employees of the business 
in the People’s Republic of China are not subject 
to undue influence by the Government of the Peo-
ple’s Republic of China at their workplace; and 
(G) to ensure that agreements and practices 
of the business in the People’s Republic of China 
ensure the protection of intellectual property. 
TITLE II—PROTECTING UNITED 
STATES NATIONAL SECURITY 
Subtitle A—Sanctions With Respect 
to People’s Republic of China 
SEC. 5201. DEFINITIONS. 
In this subtitle: 
(1) ADMISSION; ADMITTED; ALIEN; LAWFULLY 
ADMITTED FOR PERMANENT RESIDENCE.—The terms 
‘‘admission’’, ‘‘admitted’’, ‘‘alien’’, and ‘‘lawfully ad-
mitted for permanent residence’’ have the meanings 
given those terms in section 101 of the Immigration 
and Nationality Act (8 U.S.C. 1101). 
(2) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means—
1313 
† HR 4521 EAS 
(A) the Committee on Banking, Housing, 
and Urban Affairs and the Committee on For-
eign Relations of the Senate; and 
(B) the Committee on Financial Services 
and the Committee on Foreign Affairs of the 
House of Representatives. 
(3) CHINESE ENTITY.—The term ‘‘Chinese enti-
ty’’ means an entity organized under the laws of or 
otherwise subject to the jurisdiction of the People’s Re-
public of China. 
(4) ENTITY.—The term ‘‘entity’’ means a part-
nership, association, trust, joint venture, corporation, 
group, subgroup, or other organization. 
(5) FOREIGN PERSON.—The term ‘‘foreign per-
son’’ means any person that is not a United States 
person. 
(6) KNOWINGLY.—The term ‘‘knowingly’’, with 
respect to conduct, a circumstance, or a result, means 
that a person has actual knowledge, or should have 
known, of the conduct, the circumstance, or the result. 
(7) PERSON.—The term ‘‘person’’ means an in-
dividual or entity. 
(8) UNITED STATES PERSON.—The term ‘‘United 
States person’’ means—
1314 
† HR 4521 EAS 
(A) a United States citizen or an alien law-
fully admitted for permanent residence to the 
United States; 
(B) an entity organized under the laws of 
the United States or of any jurisdiction within 
the United States, including a foreign branch of 
such an entity; or 
(C) any person in the United States. 
SEC. 5202. USE OF SANCTIONS AUTHORITIES WITH RE-
SPECT 
TO 
THE 
PEOPLE’S 
REPUBLIC 
OF 
CHINA. 
(a) FINDINGS.—Congress makes the following findings: 
(1) Congress has provided the President with a 
broad range of tough authorities to impose sanctions 
to address malign behavior by the Government of the 
People’s Republic of China and individuals and enti-
ties in the People’s Republic of China, including indi-
viduals and entities engaging in— 
(A) intellectual property theft; 
(B) cyber-related economic espionage; 
(C) repression of ethnic minorities; 
(D) the use of forced labor and other human 
rights abuses; 
(E) abuses of the international trading sys-
tem;
1315 
† HR 4521 EAS 
(F) illicit assistance to and trade with the 
Government of North Korea; and 
(G) drug trafficking, including trafficking 
in fentanyl and other opioids. 
(2) Congress has in many cases mandated the 
imposition of sanctions and other measures with re-
spect to individuals and entities identified as respon-
sible for such behavior. 
(b) RECOMMENDATION TO USE AUTHORITIES.— 
(1) IN GENERAL.—The President should use the 
full range of authorities available to the President, in-
cluding the authorities described in paragraph (2) to 
impose sanctions and other measures to combat ma-
lign behavior by the Government of the People’s Re-
public of China, entities owned or controlled by that 
Government, and other Chinese individuals and enti-
ties responsible for such behavior. 
(2) AUTHORITIES DESCRIBED.—The authorities 
described in this paragraph include the following: 
(A) The Global Magnitsky Human Rights 
Accountability Act (subtitle F of title XII of 
Public Law 114–328; 22 U.S.C. 2656 note). 
(B) Section 1637 of the Carl Levin and 
Howard P. ‘‘Buck’’ McKeon National Defense 
Authorization Act for Fiscal Year 2015 (50
1316 
† HR 4521 EAS 
U.S.C. 1708) (relating to addressing economic 
and industrial espionage in cyberspace). 
(C) The Fentanyl Sanctions Act (21 U.S.C. 
2301 et seq.). 
(D) The Hong Kong Autonomy Act (Public 
Law 116–149; 22 U.S.C. 5701 note) (relating to 
the imposition of sanctions with respect to the 
erosion of certain obligations of the People’s Re-
public of China with respect to Hong Kong). 
(E) Section 7 of the Hong Kong Human 
Rights and Democracy Act of 2019 (Public Law 
116–76; 22 U.S.C. 5701 note) (relating to the 
imposition of sanctions relating to undermining 
fundamental freedoms and autonomy in Hong 
Kong). 
(F) Section 6 of the Uyghur Human Rights 
Policy Act of 2020 (Public Law 116–145; 22 
U.S.C. 6901 note) (relating to the imposition of 
sanctions with respect to violations of human 
rights of minority groups in the Xinjiang 
Uyghur Autonomous Region). 
(G) The Export Control Reform Act of 2018 
(50 U.S.C. 4801 et seq.) (relating to the imposi-
tion of new export controls).
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† HR 4521 EAS 
(H) Export control measures required to be 
maintained with respect to entities in the tele-
communications sector of the People’s Republic 
of China, including under section 1260I of the 
National Defense Authorization Act for Fiscal 
Year 2020 (Public Law 116–92; 133 Stat. 1687) 
(relating to limiting the removal of Huawei 
Technologies Co. Ltd. from the entity list of the 
Bureau of Industry and Security). 
(I) Section 889(a)(1)(B) of the John S. 
McCain National Defense Authorization Act for 
Fiscal Year 2019 (Public Law 115–232; 41 
U.S.C. 3901 note prec.) (relating to a prohibi-
tion on Federal Government contracts with enti-
ties that use telecommunications equipment or 
services produced by certain Chinese entities). 
(J) The North Korea Sanctions and Policy 
Enhancement Act of 2016 (22 U.S.C. 9201 et 
seq.), including the amendments made to that 
Act by the Otto Warmbier North Korea Nuclear 
Sanctions and Enforcement Act of 2019 (title 
LXXI of Public Law 116–92; 22 U.S.C. 9201 
note). 
(K) Section 73 of the Bretton Woods Agree-
ments Act (22 U.S.C. 286yy), as added by sec-
1318 
† HR 4521 EAS 
tion 7124 of the Otto Warmbier North Korea Nu-
clear Sanctions and Enforcement Act of 2019 
(title LXXI of Public Law 116–92; 22 U.S.C. 
9201 note). 
SEC. 5203. IMPOSITION OF SANCTIONS WITH RESPECT TO 
ACTIVITIES OF THE PEOPLE’S REPUBLIC OF 
CHINA UNDERMINING CYBERSECURITY, IN-
CLUDING 
CYBER 
ATTACKS 
ON 
UNITED 
STATES GOVERNMENT OR PRIVATE SECTOR 
NETWORKS. 
(a) IN GENERAL.—On and after the date that is 180 
days after the date of the enactment of this Act, and not 
less frequently than annually thereafter, the President 
shall— 
(1) identify each foreign person that the Presi-
dent determines— 
(A) knowingly engages in significant activi-
ties undermining cybersecurity against any per-
son, including a democratic institution, or gov-
ernmental entity on behalf of the Government of 
the People’s Republic of China; 
(B) is owned or controlled by, or acts or 
purports to act for or on behalf of, directly or in-
directly, a person described in subparagraph (A); 
or
1319 
† HR 4521 EAS 
(C) knowingly materially assists, sponsors, 
or provides financial, material, or technological 
support for, or goods or services in support of— 
(i) an activity described in subpara-
graph (A); or 
(ii) a person described in subpara-
graph (A) or (B) the property and interests 
in property of which are blocked pursuant 
to this section; 
(2) impose the sanctions described in subsection 
(b) with respect to each individual identified under 
paragraph (1); and 
(3) impose 5 or more of the sanctions described 
in subsection (c) with respect to each entity identified 
under paragraph (1). 
(b) SANCTIONS FOR ENGAGING IN SIGNIFICANT ACTIVI-
TIES UNDERMINING CYBERSECURITY.—The sanctions to be 
imposed under subsection (a)(2) with respect to an indi-
vidual are the following: 
(1) BLOCKING OF PROPERTY.—The exercise of all 
powers granted to the President by the International 
Emergency Economic Powers Act (50 U.S.C. 1701 et 
seq.) to the extent necessary to block and prohibit all 
transactions in all property and interests in property 
of the individual if such property and interests in
1320 
† HR 4521 EAS 
property are in the United States, come within the 
United States, or are or come within the possession 
or control of a United States person. 
(2) INELIGIBILITY FOR VISAS, ADMISSION, OR PA-
ROLE.— 
(A) VISAS, ADMISSION, OR
PAROLE.—An 
alien described in subsection (a)(1) is— 
(i) inadmissible to the United States; 
(ii) ineligible to receive a visa or other 
documentation to enter the United States; 
and 
(iii) otherwise ineligible to be admitted 
or paroled into the United States or to re-
ceive any other benefit under the Immigra-
tion and Nationality Act (8 U.S.C. 1101 et 
seq.). 
(B) CURRENT VISAS REVOKED.— 
(i) IN GENERAL.—An alien described 
in subsection (a)(1) is subject to revocation 
of any visa or other entry documentation 
regardless of when the visa or other entry 
documentation is or was issued. 
(ii) IMMEDIATE
EFFECT.—A revoca-
tion under clause (i) shall—
1321 
† HR 4521 EAS 
(I) take effect pursuant to section 
221(i) of the Immigration and Nation-
ality Act (8 U.S.C. 1201(i)); and 
(II) cancel any other valid visa or 
entry documentation that is in the 
alien’s possession. 
(c) SANCTIONS FOR ENTITIES ENGAGING OR ASSIST-
ING SIGNIFICANT ACTIVITIES UNDERMINING CYBERSECU-
RITY.—The sanctions to be imposed under subsection (a)(3) 
with respect to an entity are the following: 
(1) EXPORT-IMPORT BANK ASSISTANCE FOR EX-
PORTS
TO
SANCTIONED
PERSONS.—The President 
may direct the Export-Import Bank of the United 
States not to give approval to the issuance of any 
guarantee, insurance, extension of credit, or partici-
pation in the extension of credit in connection with 
the export of any goods or services to the entity. 
(2) EXPORT
SANCTION.—The President may 
order the United States Government not to issue any 
specific license and not to grant any other specific 
permission or authority to export any goods or tech-
nology to the entity under— 
(A) the Export Control Reform Act of 2018 
(50 U.S.C. 4801 et seq.);
1322 
† HR 4521 EAS 
(B) the Arms Export Control Act (22 
U.S.C. 2751 et seq.); 
(C) the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.); or 
(D) any other statute that requires the prior 
review and approval of the United States Gov-
ernment as a condition for the export or reexport 
of goods or services. 
(3) LOANS FROM UNITED STATES FINANCIAL IN-
STITUTIONS.—The 
President 
may 
prohibit 
any 
United States financial institution from making 
loans or providing credits to the entity totaling more 
than $10,000,000 in any 12-month period unless the 
person is engaged in activities to relieve human suf-
fering and the loans or credits are provided for such 
activities. 
(4) LOANS FROM INTERNATIONAL FINANCIAL IN-
STITUTIONS.—The President may direct the United 
States executive director to each international finan-
cial institution to use the voice and vote of the United 
States to oppose any loan from the international fi-
nancial institution that would benefit the entity. 
(5) 
PROHIBITIONS
ON
FINANCIAL
INSTITU-
TIONS.—The following prohibitions may be imposed
1323 
† HR 4521 EAS 
against the entity if the entity is a financial institu-
tion: 
(A) PROHIBITION ON DESIGNATION AS PRI-
MARY DEALER.—Neither the Board of Governors 
of the Federal Reserve System nor the Federal 
Reserve Bank of New York may designate, or 
permit the continuation of any prior designation 
of, the financial institution as a primary dealer 
in United States Government debt instruments. 
(B) PROHIBITION ON SERVICE AS A REPOSI-
TORY
OF
GOVERNMENT
FUNDS.—The financial 
institution may not serve as agent of the United 
States Government or serve as repository for 
United States Government funds. 
The imposition of either sanction under subparagraph 
(A) or (B) shall be treated as one sanction for pur-
poses of subsection (a)(3), and the imposition of both 
such sanctions shall be treated as 2 sanctions for pur-
poses of subsection (a)(3). 
(6) 
PROCUREMENT
SANCTION.—The 
United 
States Government may not procure, or enter into 
any contract for the procurement of, any goods or 
services from the entity. 
(7) FOREIGN EXCHANGE.—The President may, 
pursuant to such regulations as the President may
1324 
† HR 4521 EAS 
prescribe, prohibit any transactions in foreign ex-
change that are subject to the jurisdiction of the 
United States and in which the entity has any inter-
est. 
(8) BANKING
TRANSACTIONS.—The President 
may, pursuant to such regulations as the President 
may prescribe, prohibit any transfers of credit or 
payments between financial institutions or by, 
through, or to any financial institution, to the extent 
that such transfers or payments are subject to the ju-
risdiction of the United States and involve any inter-
est of the entity. 
(9) PROPERTY
TRANSACTIONS.—The President 
may, pursuant to such regulations as the President 
may prescribe, prohibit any person from— 
(A) acquiring, holding, withholding, using, 
transferring, withdrawing, transporting, or ex-
porting any property that is subject to the juris-
diction of the United States and with respect to 
which the entity has any interest; 
(B) dealing in or exercising any right, 
power, or privilege with respect to such property; 
or 
(C) conducting any transaction involving 
such property.
1325 
† HR 4521 EAS 
(10) BAN ON INVESTMENT IN EQUITY OR DEBT 
OF SANCTIONED PERSON.—The President may, pursu-
ant to such regulations or guidelines as the President 
may prescribe, prohibit any United States person 
from investing in or purchasing significant amounts 
of equity or debt instruments of the entity. 
(11) EXCLUSION OF CORPORATE OFFICERS.—The 
President may direct the Secretary of State to deny 
a visa to, and the Secretary of Homeland Security to 
exclude from the United States, any alien that the 
President determines is a corporate officer or prin-
cipal of, or a shareholder with a controlling interest 
in, the entity. 
(12) SANCTIONS ON PRINCIPAL EXECUTIVE OFFI-
CERS.—The President may impose on the principal 
executive officer or officers of the entity, or on persons 
performing similar functions and with similar au-
thorities as such officer or officers, any of the sanc-
tions under this subsection. 
(d) NATIONAL SECURITY WAIVER.—The President 
may waive the imposition of sanctions under this section 
with respect to a foreign person if the President— 
(1) determines that such a waiver is in the na-
tional security interests of the United States; and
1326 
† HR 4521 EAS 
(2) not more than 15 days after issuing the 
waiver, submits to the appropriate congressional com-
mittees a notification of the waiver and the reasons 
for the waiver. 
(e) SIGNIFICANT ACTIVITIES UNDERMINING CYBERSE-
CURITY DEFINED.—In this section, the term ‘‘significant 
activities undermining cybersecurity’’ includes— 
(1) significant efforts— 
(A) to deny access to or degrade, com-
promise, disrupt, or destroy an information and 
communications technology system or network; 
or 
(B) to exfiltrate, degrade, corrupt, destroy, 
or release information from such a system or 
network without authorization for purposes of— 
(i) conducting influence operations; or 
(ii) causing a significant misappro-
priation of funds, economic resources, trade 
secrets, personal identifications, or financial 
information for commercial or competitive 
advantage or private financial gain; 
(2) significant destructive malware attacks; or 
(3) significant denial of service activities.
1327 
† HR 4521 EAS 
SEC. 5204. IMPOSITION OF SANCTIONS WITH RESPECT TO 
THEFT 
OF 
TRADE 
SECRETS 
OF 
UNITED 
STATES PERSONS. 
(a) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, and not less fre-
quently than annually thereafter, the President shall 
submit to the appropriate congressional committees a 
report— 
(A) identifying any foreign person the 
President determines, during the period specified 
in paragraph (2)— 
(i) has knowingly engaged in, or bene-
fitted from, significant theft of trade secrets 
of United States persons, if the theft of such 
trade secrets occurred on or after such date 
of enactment and is reasonably likely to re-
sult in, or has materially contributed to, a 
significant threat to the national security, 
foreign policy, or economic health or finan-
cial stability of the United States; 
(ii) has provided significant financial, 
material, or technological support for, or 
goods or services in support of or to benefit 
significantly from, such theft;
1328 
† HR 4521 EAS 
(iii) is an entity that is owned or con-
trolled by, or that has acted or purported to 
act for or on behalf of, directly or indi-
rectly, any foreign person identified under 
clause (i) or (ii); or 
(iv) is a chief executive officer or mem-
ber of the board of directors of any foreign 
entity identified under clause (i) or (ii); 
(B) describing the nature, objective, and 
outcome of the theft of trade secrets each foreign 
person described in subparagraph (A)(i) engaged 
in or benefitted from; and 
(C) assessing whether any chief executive of-
ficer or member of the board of directors de-
scribed in clause (iv) of subparagraph (A) en-
gaged in, or benefitted from, activity described in 
clause (i) or (ii) of that subparagraph. 
(2) PERIOD SPECIFIED.—The period specified in 
this paragraph is— 
(A) in the case of the first report required 
by paragraph (1), the period beginning on the 
date of the enactment of this Act and ending on 
the date on which the report is required to be 
submitted; and
1329 
† HR 4521 EAS 
(B) in the case of each subsequent report re-
quired by paragraph (1), the one-year period 
preceding the date on which the report is re-
quired to be submitted. 
(3) FORM OF REPORT.—Each report required by 
paragraph (1) shall be submitted in unclassified form 
but may include a classified annex. 
(b) AUTHORITY TO IMPOSE SANCTIONS.— 
(1) SANCTIONS
APPLICABLE
TO
ENTITIES.—In 
the case of a foreign entity identified under subpara-
graph (A) of subsection (a)(1) in the most recent re-
port submitted under that subsection, the President 
shall impose not less than 5 of the following: 
(A) BLOCKING OF PROPERTY.—The Presi-
dent may, pursuant to the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 et 
seq.), block and prohibit all transactions in all 
property and interests in property of the entity 
if such property and interests in property are in 
the United States, come within the United 
States, or are or come within the possession or 
control of a United States person. 
(B) INCLUSION
ON
ENTITY
LIST.—The 
President may include the entity on the entity 
list maintained by the Bureau of Industry and
1330 
† HR 4521 EAS 
Security of the Department of Commerce and set 
forth in Supplement No. 4 to part 744 of the Ex-
port Administration Regulations, for activities 
contrary to the national security or foreign pol-
icy interests of the United States. 
(C) EXPORT-IMPORT BANK ASSISTANCE FOR 
EXPORTS TO SANCTIONED PERSONS.—The Presi-
dent may direct the Export-Import Bank of the 
United States not to give approval to the 
issuance of any guarantee, insurance, extension 
of credit, or participation in the extension of 
credit in connection with the export of any goods 
or services to the entity. 
(D) LOANS FROM UNITED STATES FINAN-
CIAL
INSTITUTIONS.—The President may pro-
hibit any United States financial institution 
from making loans or providing credits to the 
entity totaling more than $10,000,000 in any 
12-month period unless the person is engaged in 
activities to relieve human suffering and the 
loans or credits are provided for such activities. 
(E) LOANS
FROM
INTERNATIONAL
FINAN-
CIAL INSTITUTIONS.—The President may direct 
the United States executive director to each 
international financial institution to use the
1331 
† HR 4521 EAS 
voice and vote of the United States to oppose any 
loan from the international financial institution 
that would benefit the entity. 
(F) PROHIBITIONS ON FINANCIAL INSTITU-
TIONS.—The following prohibitions may be im-
posed against the entity if the entity is a finan-
cial institution: 
(i) PROHIBITION ON DESIGNATION AS 
PRIMARY
DEALER.—Neither the Board of 
Governors of the Federal Reserve System 
nor the Federal Reserve Bank of New York 
may designate, or permit the continuation 
of any prior designation of, the financial 
institution as a primary dealer in United 
States Government debt instruments. 
(ii) PROHIBITION
ON
SERVICE
AS
A 
REPOSITORY OF GOVERNMENT FUNDS.—The 
financial institution may not serve as agent 
of the United States Government or serve as 
repository for United States Government 
funds. 
The imposition of either sanction under clause 
(i) or (ii) shall be treated as one sanction for 
purposes of this subsection, and the imposition of
1332 
† HR 4521 EAS 
both such sanctions shall be treated as 2 sanc-
tions for purposes of this subsection. 
(G) PROCUREMENT SANCTION.—The United 
States Government may not procure, or enter 
into any contract for the procurement of, any 
goods or services from the entity. 
(H) FOREIGN
EXCHANGE.—The President 
may, pursuant to such regulations as the Presi-
dent may prescribe, prohibit any transactions in 
foreign exchange that are subject to the jurisdic-
tion of the United States and in which the entity 
has any interest. 
(I) BANKING
TRANSACTIONS.—The Presi-
dent may, pursuant to such regulations as the 
President may prescribe, prohibit any transfers 
of credit or payments between financial institu-
tions or by, through, or to any financial institu-
tion, to the extent that such transfers or pay-
ments are subject to the jurisdiction of the 
United States and involve any interest of the en-
tity. 
(J) BAN
ON
INVESTMENT
IN
EQUITY
OR 
DEBT OF SANCTIONED PERSON.—The President 
may, pursuant to such regulations or guidelines 
as the President may prescribe, prohibit any
1333 
† HR 4521 EAS 
United States person from investing in or pur-
chasing significant amounts of equity or debt in-
struments of the entity. 
(K) EXCLUSION
OF
CORPORATE
OFFI-
CERS.—The President may direct the Secretary 
of State to deny a visa to, and the Secretary of 
Homeland Security to exclude from the United 
States, any alien that the President determines 
is a corporate officer or principal of, or a share-
holder with a controlling interest in, the entity. 
(L) SANCTIONS ON PRINCIPAL EXECUTIVE 
OFFICERS.—The President may impose on the 
principal executive officer or officers of the enti-
ty, or on individuals performing similar func-
tions and with similar authorities as such officer 
or officers, any of the sanctions under this para-
graph. 
(2) SANCTIONS APPLICABLE TO INDIVIDUALS.— 
In the case of an alien identified under subparagraph 
(A) of subsection (a)(1) in the most recent report sub-
mitted under that subsection, the following shall 
apply: 
(A) BLOCKING OF PROPERTY.—The Presi-
dent shall, pursuant to the International Emer-
gency Economic Powers Act (50 U.S.C. 1701 et
1334 
† HR 4521 EAS 
seq.), block and prohibit all transactions in all 
property and interests in property of the alien if 
such property and interests in property are in 
the United States, come within the United 
States, or are or come within the possession or 
control of a United States person. 
(B) INELIGIBILITY FOR VISAS, ADMISSION, 
OR PAROLE.— 
(i) VISAS, ADMISSION, OR PAROLE.— 
An alien described in subparagraph (A) of 
subsection (a)(1) is— 
(I) inadmissible to the United 
States; 
(II) ineligible to receive a visa or 
other 
documentation 
to 
enter 
the 
United States; and 
(III) otherwise ineligible to be ad-
mitted or paroled into the United 
States or to receive any other benefit 
under the Immigration and Nation-
ality Act (8 U.S.C. 1101 et seq.). 
(ii) CURRENT VISAS REVOKED.— 
(I) IN
GENERAL.—An alien de-
scribed in subparagraph (A) of sub-
section (a)(1) is subject to revocation of
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† HR 4521 EAS 
any visa or other entry documentation 
regardless of when the visa or other 
entry documentation is or was issued. 
(II) IMMEDIATE EFFECT.—A rev-
ocation under subclause (I) shall— 
(aa) take effect pursuant to 
section 221(i) of the Immigration 
and Nationality Act (8 U.S.C. 
1201(i)); and 
(bb) cancel any other valid 
visa or entry documentation that 
is in the alien’s possession. 
(c) NATIONAL INTEREST WAIVER.—The President may 
waive the imposition of sanctions under subsection (b) with 
respect to a person if the President— 
(1) determines that such a waiver is in the na-
tional interests of the United States; and 
(2) not more than 15 days after issuing the 
waiver, submits to the appropriate congressional com-
mittees a notification of the waiver and the reasons 
for the waiver. 
(d) TERMINATION OF SANCTIONS.—Sanctions imposed 
under subsection (b) with respect to a foreign person identi-
fied in a report submitted under subsection (a) shall termi-
nate if the President certifies to the appropriate congres-
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† HR 4521 EAS 
sional committees, before the termination takes effect, that 
the person is no longer engaged in the activity identified 
in the report. 
(e) DEFINITIONS.—In this section: 
(1) EXPORT
ADMINISTRATION
REGULATIONS.— 
The term ‘‘Export Administration Regulations’’ 
means subchapter C of chapter VII of title 15, Code 
of Federal Regulations. 
(2) FOREIGN ENTITY.—The term ‘‘foreign entity’’ 
means an entity that is not a United States person. 
(3) TRADE
SECRET.—The term ‘‘trade secret’’ 
has the meaning given that term in section 1839 of 
title 18, United States Code. 
SEC. 5205. IMPLEMENTATION; PENALTIES. 
(a) IMPLEMENTATION.—The President may exercise 
all authorities provided under sections 203 and 205 of the 
International Emergency Economic Powers Act (50 U.S.C. 
1702 and 1704) to carry out this subtitle. 
(b) PENALTIES.—A person that violates, attempts to 
violate, conspires to violate, or causes a violation of this 
subtitle or any regulation, license, or order issued to carry 
out this subtitle shall be subject to the penalties set forth 
in subsections (b) and (c) of section 206 of the International 
Emergency Economic Powers Act (50 U.S.C. 1705) to the
1337 
† HR 4521 EAS 
same extent as a person that commits an unlawful act de-
scribed in subsection (a) of that section. 
SEC. 5206. EXCEPTIONS. 
(a) INTELLIGENCE ACTIVITIES.—This subtitle shall 
not apply with respect to activities subject to the reporting 
requirements under title V of the National Security Act of 
1947 (50 U.S.C. 3091 et seq.) or any authorized intelligence 
activities of the United States. 
(b) 
LAW
ENFORCEMENT
ACTIVITIES.—Sanctions 
under this subtitle shall not apply with respect to any au-
thorized law enforcement activities of the United States. 
(c) EXCEPTION
TO COMPLY WITH INTERNATIONAL 
AGREEMENTS.—Sanctions under this subtitle shall not 
apply with respect to the admission of an alien to the 
United States if such admission is necessary to comply with 
the obligations of the United States under the Agreement 
regarding the Headquarters of the United Nations, signed 
at Lake Success June 26, 1947, and entered into force No-
vember 21, 1947, between the United Nations and the 
United States, or the Convention on Consular Relations, 
done at Vienna April 24, 1963, and entered into force 
March 19, 1967, or other international obligations. 
(d) EXCEPTION
RELATING
TO
IMPORTATION
OF 
GOODS.—
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† HR 4521 EAS 
(1) IN GENERAL.—The authority or a require-
ment to impose sanctions under this subtitle shall not 
include the authority or a requirement to impose 
sanctions on the importation of goods. 
(2) GOOD DEFINED.—In this subsection, the term 
‘‘good’’ means any article, natural or manmade sub-
stance, material, supply, or manufactured product, 
including inspection and test equipment, and exclud-
ing technical data. 
Subtitle B—Export Control Review 
And Other Matters 
SEC. 5211. REVIEW AND CONTROLS ON EXPORT OF ITEMS 
WITH CRITICAL CAPABILITIES TO ENABLE 
HUMAN RIGHTS ABUSES. 
(a) STATEMENT OF POLICY.—It is the policy of the 
United States to use export controls to the extent necessary 
to further the protection of internationally recognized 
human rights. 
(b) REVIEW OF ITEMS WITH CRITICAL CAPABILITIES 
TO ENABLE HUMAN RIGHTS ABUSES.—Not later than 180 
days after the date of the enactment of this Act, and as 
appropriate thereafter, the Secretary, in coordination with 
the Secretary of State, the Director of National Intelligence, 
and the heads of other Federal agencies as appropriate, 
shall conduct a review of items subject to controls for crime
1339 
† HR 4521 EAS 
control reasons pursuant to section 742.7 of the Export Ad-
ministration Regulations. 
(c) CONTROLS.—In furtherance of the policy set forth 
in subsection (a), not later than 60 days after completing 
the review required by subsection (b), the Secretary, in co-
ordination with the heads of other Federal agencies as ap-
propriate, shall determine whether additional export con-
trols are needed to protect human rights, including wheth-
er— 
(1) controls for crime control reasons pursuant 
to section 742.7 of the Export Administration Regula-
tions should be imposed on additional items, includ-
ing items with critical capabilities to enable human 
rights abuses involving— 
(A) censorship or social control; 
(B) surveillance, interception, or restriction 
of communications; 
(C) monitoring or restricting access to or 
use of the internet; 
(D) identification of individuals through fa-
cial or voice recognition or biometric indicators; 
or 
(E) DNA sequencing; or 
(2) end-use and end-user controls should be im-
posed on the export, reexport, or in-country transfer
1340 
† HR 4521 EAS 
of certain items with critical capabilities to enable 
human rights abuses that are subject to the Export 
Administration Regulations if the person seeking to 
export, reexport, or transfer the item has knowledge, 
or the Secretary determines and so informs that per-
son, that the end-user or ultimate consignee will use 
the item to enable human rights abuses. 
(d) COOPERATION OF OTHER AGENCIES.—Upon re-
quest from the Secretary, the head of a Federal agency shall 
provide full support and cooperation to the Secretary in 
carrying out this section. 
(e) INTERNATIONAL COORDINATION ON CONTROLS TO 
PROTECT HUMAN RIGHTS.—It shall be the policy of the 
United States to seek to secure the cooperation of other gov-
ernments to impose export controls that are consistent, to 
the extent possible, with the controls imposed under this sec-
tion. 
(f) CONFORMING AMENDMENT.—Section 1752(2)(A) of 
the Export Control Reform Act of 2018 (50 U.S.C. 
4811(2)(A)) is amended— 
(1) in clause (iv), by striking ‘‘; or’’ and insert-
ing a semicolon; 
(2) in clause (v), by striking the period and in-
serting ‘‘; or’’; and 
(3) by adding at the end the following:
1341 
† HR 4521 EAS 
‘‘(vi) serious human rights abuses.’’. 
(g) DEFINITIONS.—In this section: 
(1) END-USER; KNOWLEDGE; ULTIMATE
CON-
SIGNEE.—The terms ‘‘end-user’’, ‘‘knowledge’’, and 
‘‘ultimate consignee’’ have the meanings given those 
terms in section 772.1 of the Export Administration 
Regulations. 
(2) EXPORT; EXPORT ADMINISTRATION REGULA-
TIONS; IN-COUNTRY
TRANSFER; ITEM; REEXPORT.— 
The terms ‘‘export’’, ‘‘Export Administration Regula-
tions’’, ‘‘in-country transfer’’, ‘‘item’’, and ‘‘reexport’’ 
have the meanings given those terms in section 1742 
of the Export Control Reform Act of 2018 (50 U.S.C. 
4801). 
(3) SECRETARY.—The term ‘‘Secretary’’ means 
the Secretary of Commerce. 
SEC. 5212. PROHIBITION ON REVIEWS BY COMMITTEE ON 
FOREIGN 
INVESTMENT 
IN 
THE 
UNITED 
STATES OF CERTAIN FOREIGN GIFTS TO AND 
CONTRACTS WITH INSTITUTIONS OF HIGHER 
EDUCATION. 
(a) IN GENERAL.—Notwithstanding any other provi-
sion of law, the Committee on Foreign Investment in the 
United States may not review or investigate a gift to an 
institution of higher education from a foreign person, or
1342 
† HR 4521 EAS 
the entry into a contract by such an institution with a for-
eign person, that is not a covered transaction as defined 
in section 721(a)(4) of the Defense Production Act of 1950 
(50 U.S.C. 4565(a)(4)), as in effect on the day before the 
date of the enactment of this Act. 
(b) PROHIBITION
ON
USE
OF
FUNDS.—Notwith-
standing any other provision of law, none of the funds au-
thorized to be appropriated or otherwise made available for 
fiscal year 2021 or any fiscal year thereafter may be obli-
gated or expended by the Committee on Foreign Investment 
in the United States to review or investigate a gift or con-
tract described in subsection (a). 
SEC. 5213. CONFORMING AMENDMENTS TO TREASURY POSI-
TIONS ESTABLISHED BY FOREIGN INVEST-
MENT RISK REVIEW MODERNIZATION ACT OF 
2018. 
(a) TITLE 31.—Section 301(e) of title 31, United 
States Code, is amended in the first sentence by striking 
‘‘8’’ and inserting ‘‘9’’. 
(b) TITLE 5.—Section 5315 of title 5, United States 
Code, is amended by striking ‘‘Assistant Secretaries of the 
Treasury (10).’’ and inserting ‘‘Assistant Secretaries of the 
Treasury (11).’’.
1343 
† HR 4521 EAS 
TITLE III—REPORTS 
SEC. 5301. REVIEW OF THE PRESENCE OF CHINESE ENTI-
TIES IN UNITED STATES CAPITAL MARKETS. 
(a) REPORT REQUIRED.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of the enactment of this Act, 3 years after 
such date of enactment, and 5 years after such date 
of enactment, the Secretary of the Treasury, in con-
sultation with the Director of National Intelligence, 
the Secretary of State, and the Chairman of the Secu-
rities and Exchange Commission, shall submit to the 
appropriate congressional committees an unclassified 
report that describes the risks posed to the United 
States by the presence in United States capital mar-
kets of entities incorporated in the People’s Republic 
of China. 
(2) MATTERS TO BE INCLUDED.—Each report re-
quired under paragraph (1) shall— 
(A) identify entities incorporated in the 
People’s Republic of China— 
(i)(I) the securities (including Amer-
ican depositary receipts) of which are listed 
or traded on one or several national securi-
ties exchanges, or traded through any proc-
ess commonly referred to as the ‘‘over-the-
1344 
† HR 4521 EAS 
counter’’ method of trading, within the 
United States; or 
(II) that have ‘‘A Shares’’ listed or 
traded on mainland exchanges in the Peo-
ple’s Republic of China that are included in 
index-based, exchange-traded funds pur-
chased or sold within the United States; 
and 
(ii) that, based on the factors for con-
sideration described in paragraph (3), have 
knowingly and materially contributed to— 
(I) 
activities 
that 
undermine 
United States national security; 
(II) serious abuses of internation-
ally recognized human rights; or 
(III) a substantially increased fi-
nancial 
risk 
exposure 
for 
United 
States-based investors; 
(B) describe the activities of the entities 
identified pursuant to subparagraph (A) and 
their implications for the United States; and 
(C) develop policy recommendations for the 
United States Government, United States finan-
cial institutions, national securities exchanges, 
and other relevant stakeholders to address any
1345 
† HR 4521 EAS 
risks posed by the presence in United States cap-
ital markets of the entities identified pursuant to 
subparagraph (A). 
(3) FACTORS
FOR
CONSIDERATION.—In com-
pleting each report under paragraph (1), the Sec-
retary of the Treasury shall consider whether an enti-
ty identified pursuant to paragraph (2)(A)— 
(A) has materially contributed to the devel-
opment or manufacture, or sold or facilitated 
procurement by the People’s Liberation Army, of 
lethal military equipment or component parts of 
such equipment; 
(B) has contributed to the construction and 
militarization of features in the South China 
Sea; 
(C) has been sanctioned by the United 
States or has been determined to have conducted 
business with sanctioned entities; 
(D) has engaged in an act or a series of acts 
of intellectual property theft; 
(E) has engaged in corporate or economic 
espionage; 
(F) has contributed to the proliferation of 
nuclear or missile technology in violation of
1346 
† HR 4521 EAS 
United Nations Security Council resolutions or 
United States sanctions; 
(G) has contributed to the repression of reli-
gious and ethnic minorities within the People’s 
Republic of China, including in the Xinjiang 
Uyghur Autonomous Region or the Tibet Autono-
mous Region; 
(H) has contributed to the development of 
technologies that enable censorship directed or di-
rectly supported by the Government of the Peo-
ple’s Republic of China; 
(I) has failed to comply fully with Federal 
securities laws (including required audits by the 
Public Company Accounting Oversight Board) 
and ‘‘material risk’’ disclosure requirements of 
the Securities and Exchange Commission; or 
(J) has contributed to other activities or be-
havior determined to be relevant by the Secretary 
of the Treasury. 
(b) REPORT FORM.—Each report required under sub-
section (a)(1) shall be submitted in unclassified form but 
may include a classified annex. 
(c) PUBLICATION.—The unclassified portion of a re-
port under subsection (a)(1) shall be made accessible to the
1347 
† HR 4521 EAS 
public online through relevant United States Government 
websites. 
(d) DEFINITIONS.—In this section: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Banking, Housing, 
and Urban Affairs, the Committee on Foreign 
Relations, and the Select Committee on Intel-
ligence of the Senate; and 
(B) the Committee on Financial Services, 
the Committee on Foreign Affairs, and the Per-
manent Select Committee on Intelligence of the 
House of Representatives. 
(2) NATIONAL
SECURITIES
EXCHANGE.—The 
term ‘‘national securities exchange’’ means an ex-
change registered as a national securities exchange in 
accordance with section 6 of the Securities Exchange 
Act of 1934 (15 U.S.C. 78f). 
SEC. 5302. REPORT ON MALIGN ACTIVITY INVOLVING CHI-
NESE STATE-OWNED ENTERPRISES. 
(a) IN GENERAL.—Not later than one year after the 
date of the enactment of this Act, the President shall submit 
to the appropriate congressional committees a report that—
1348 
† HR 4521 EAS 
(1) assesses whether and to what extent state- 
owned enterprises in the People’s Republic of China 
are engaged in or knowingly facilitating— 
(A) the commission of serious human rights 
abuses, including toward religious or ethnic mi-
norities in the People’s Republic of China, in-
cluding in the Xinjiang Uyghur Autonomous Re-
gion; 
(B) the use of forced or child labor, includ-
ing forced or child labor involving ethnic minori-
ties in the People’s Republic of China; or 
(C) any actions that erode or undermine the 
autonomy of Hong Kong from the People’s Re-
public of China, as established in the Basic Law 
of Hong Kong and the Joint Declaration, and as 
further described in the Hong Kong Autonomy 
Act (Public Law 116–149; 22 U.S.C. 5701 note); 
(2) identifies— 
(A) any state-owned enterprises in the Peo-
ple’s Republic of China that are engaged in or 
knowingly facilitating any activities described in 
paragraph (1); 
(B) any Communist Chinese military com-
panies identified under section 1237(b) of the 
Strom Thurmond National Defense Authoriza-
1349 
† HR 4521 EAS 
tion Act for Fiscal Year 1999 (Public Law 105– 
261; 50 U.S.C. 1701 note); and 
(C) any majority-owned subsidiaries of such 
enterprises or companies with a market capital-
ization of $5,000,000,000 or more; 
(3)(A) assesses whether each enterprise, company, 
or subsidiary identified under paragraph (2) received, 
during the 5-year period preceding submission of the 
report, any financial assistance from the United 
States Government; and 
(B) in the case of any such enterprise, company, 
or subsidiary that received financial assistance from 
an agency of the United States Government during 
that period, identifies the amount of such assistance 
received by the enterprise, company, or subsidiary; 
and 
(4) includes recommendations for any legislative 
or administrative action to address matters identified 
in the report, including any recommendations with 
respect to additional limitations on United States fi-
nancial assistance provided to enterprises, companies, 
and subsidiaries identified under paragraph (2). 
(b) FORM OF REPORT.—The report required by sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex.
1350 
† HR 4521 EAS 
(c) DEFINITIONS.—In this section: 
(1) 
APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES.—The term ‘‘appropriate congressional commit-
tees’’ means— 
(A) the Committee on Banking, Housing, 
and Urban Affairs and the Committee on For-
eign Relations of the Senate; and 
(B) the Committee on Financial Services 
and the Committee on Foreign Affairs of the 
House of Representatives. 
(2) JOINT DECLARATION.—The term ‘‘Joint Dec-
laration’’ means the Joint Declaration of the Govern-
ment of the United Kingdom of Great Britain and 
Northern Ireland and the Government of the People’s 
Republic of China on the Question of Hong Kong, 
done at Beijing December 19, 1984. 
SEC. 5303. REPORT ON USE AND APPLICABILITY OF SANC-
TIONS TO CHINESE OFFICIALS COMPLICIT IN 
HUMAN RIGHTS VIOLATIONS AND VIOLA-
TIONS OF UNITED STATES SANCTIONS WITH 
RESPECT TO HONG KONG. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of State, 
in consultation with the Secretary of the Treasury, shall 
submit to the appropriate congressional committees a report
1351 
† HR 4521 EAS 
on the use and applicability of sanctions, including finan-
cial sanctions and the denial of visas to enter the United 
States, with respect to officials of the Government of the 
People’s Republic of China complicit in— 
(1) human rights violations, including severe re-
ligious freedom restrictions and human trafficking; or 
(2) violations of sanctions imposed by the United 
States with respect to Hong Kong. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include— 
(1) a list of all relevant authorities under stat-
utes or Executive orders for imposing sanctions de-
scribed in subsection (a); 
(2) an assessment of where, if at all, such au-
thorities may conflict, overlap, or otherwise require 
clarification; 
(3) a list of all instances in which designations 
for the imposition of sanctions described in subsection 
(a) were made during the one-year period preceding 
submission of the report; and 
(4) an assessment of the effectiveness of those des-
ignations in changing desired behavior and rec-
ommendations for increasing the effectiveness of such 
designations.
1352 
† HR 4521 EAS 
(c) FORM OF REPORT.—The report required by sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Banking, Housing, and 
Urban Affairs and the Committee on Foreign Rela-
tions of the Senate; and 
(2) the Committee on Financial Services and the 
Committee on Foreign Affairs of the House of Rep-
resentatives. 
SEC. 5304. REPORT ON DOMESTIC SHORTFALLS OF INDUS-
TRIAL RESOURCES, MATERIALS, AND CRIT-
ICAL TECHNOLOGY ITEMS ESSENTIAL TO THE 
NATIONAL DEFENSE. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the President shall submit 
to the Committee on Banking, Housing, and Urban Affairs 
of the Senate and the Committee on Financial Services of 
the House of Representatives a report that— 
(1) identifies current or projected domestic short-
falls of industrial resources, materials, or critical 
technology items essential to the national defense;
1353 
† HR 4521 EAS 
(2) assesses strategic and critical materials for 
which the United States relies on the People’s Repub-
lic of China as the sole or primary source; and 
(3) includes recommendations relating to the use 
of authorities under the Defense Production Act of 
1950 (50 U.S.C. 4501 et seq.) to make investments to 
reduce the reliance of the United States on the Peo-
ple’s Republic of China for strategic and critical ma-
terials. 
(b) FORM OF REPORT.—The report required by sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex. 
(c) DEFINITIONS.—In this section, the terms ‘‘indus-
trial resources’’, ‘‘materials’’, ‘‘critical technology item’’, 
and ‘‘national defense’’ have the meanings given those terms 
in section 702 of the Defense Production Act of 1950 (50 
U.S.C. 4552). 
SEC. 5305. REPORT ON IMPLEMENTATION OF PROCESS FOR 
EXCHANGE OF INFORMATION BETWEEN COM-
MITTEE ON FOREIGN INVESTMENT IN THE 
UNITED STATES AND ALLIES AND PARTNERS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the chairperson of the 
Committee on Foreign Investment in the United States 
shall submit to the Committee on Banking, Housing, and
1354 
† HR 4521 EAS 
Urban Affairs of the Senate and the Committee on Finan-
cial Services of the House of Representatives a report on 
the implementation of the formal process for the exchange 
of information with governments of countries that are allies 
or partners of the United States described in section 
721(c)(3) of the Defense Production Act of 1950 (50 U.S.C. 
4565(c)(3)). 
(b) FORM OF REPORT.—The report required by sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex. 
SEC. 5306. REPORT ON ECONOMIC AND NATIONAL SECU-
RITY IMPLICATIONS OF CHANGES TO CROSS- 
BORDER 
PAYMENT 
AND 
FINANCIAL 
MES-
SAGING SYSTEMS. 
(a) IN GENERAL.—Not later than 180 days after the 
date of the enactment of this Act, the Secretary of the Treas-
ury, in collaboration with the Secretary of State and the 
Board of Governors of the Federal Reserve System, shall 
submit to the appropriate congressional committees a report 
on the economic and national security implications of ma-
terial changes to the infrastructure or ecosystem of cross- 
border payment and financial messaging systems, including 
alternative systems being developed by other countries. 
(b) ELEMENTS.—The report required by subsection (a) 
shall include—
1355 
† HR 4521 EAS 
(1) an assessment of the impact of— 
(A) how changes to the infrastructure or 
ecosystem of cross-border payment and financial 
messaging systems, including emerging systems 
that enable cross-border payments, will affect 
United States national security interests, includ-
ing enforcement of United States and inter-
national anti-money laundering, countering the 
financing of terrorism, and sanctions standards 
designed to safeguard the international financial 
system; and 
(B) other relevant national security impli-
cations of such changes; 
(2) an assessment of the implications of any on-
going collaborations of international financial mes-
saging systems with emerging cross-border payment 
or financial messaging systems; 
(3) an assessment of the economic and national 
security implications for the United States of changes 
in participation by banks and state actors in alter-
native cross-border payment and financial messaging 
systems; and 
(4) recommendations for actions—
1356 
† HR 4521 EAS 
(A) to bolster and protect the status of exist-
ing strong and reliable financial messaging sys-
tems for cross-border payments; and 
(B) to ensure that the national security in-
terests of the United States, including those re-
lated to enforcement of international anti-money 
laundering, countering the financing of ter-
rorism, and sanctions standards, are protected. 
(c) FORM OF REPORT.—The report required by sub-
section (a) shall be submitted in unclassified form but may 
include a classified annex. 
(d) APPROPRIATE CONGRESSIONAL COMMITTEES DE-
FINED.—In this section, the term ‘‘appropriate congres-
sional committees’’ means— 
(1) the Committee on Banking, Housing, and 
Urban Affairs, the Committee on Foreign Relations, 
and the Select Committee on Intelligence of the Sen-
ate; and 
(2) the Committee on Financial Services, the 
Committee on Foreign Affairs, and the Permanent 
Select Committee on Intelligence of the House of Rep-
resentatives.