I 118th CONGRESS 2d Session H. R. 10100 IN THE HOUSE OF REPRESENTATIVES November 5, 2024 Mr. Moolenaar introduced the following bill; which was referred to the Committee on Foreign Affairs A BILL To amend the State Department Basic Authorities Act to establish a Deputy Secretary of State for Economic Security, redesignate and relocate other offices of the Department of State, and for other purposes.

1. Short title This Act may be cited as the Economic Security and Diplomacy Act of 2024 . 2. Amendments to the state department basic authorities act Section 1 of the State Department Basic Authorities Act of 1956 ( 22 U.S.C. 2651a ) is amended— (1) in subsection (a)(2), by inserting the Deputy Secretary of State for Economic Security, after the Deputy Secretary of State, ; (2) in subsection (b)(1), by striking 6 and inserting 5 ; (3) in subsection (c)(1), by striking 24 and inserting 27 ; and (4) in subsection (i)— (A) in paragraph (1), by striking the second sentence and inserting Subject to the numerical limitation under subsection (c)(1), the head of the Bureau shall be an Assistant Secretary for Cyberspace and Digital Policy and shall report to the Deputy Secretary for Economic Security. ; (B) by striking paragraph (4); and (C) by redesignating paragraphs (5) through (7) as paragraphs (4) through (6), respectively. 3. Establishment of deputy secretary for economic security The Secretary of State shall take such steps as may be necessary to ensure the following: (1) To transfer, pursuant to the amendment made by section 1(1), the assets, liabilities, personnel, and duties of the position and office of Under Secretary of State for Economic Growth, Energy, and the Environment to the position and office of Deputy Secretary of State for Economic Security. (2) To establish the mission of such Deputy Secretary as responsibility for all matters of the Department of State relating to the economic security of the United States, such as sanctions policy, trade policy, export controls, supply chain security, foreign assistance, and combatting economic coercion. (3) To redesignate the position and office of the following officials: (A) The Assistant Secretary for Economic and Business Affairs as the Assistant Secretary for Trade and Investment Security, who shall upon such redesignation become responsible for all matters of the Department related to outbound investment restrictions and inbound investment screening. (B) The Assistant Secretary for Energy Resources as the Assistant Secretary for Supply Chain Security, who shall upon such redesignation become the lead representative of the Department of State on the Forced Labor Enforcement Task Force and become responsible for all matters of the Department related to Federal acquisition policy, forced labor in United States supply chains, development finance, and efforts pertaining to critical minerals and pharmaceutical supply chains. (4) To ensure that the following positions and offices shall be relocated as necessary within the Department to report to different principals as follows: (A) The Assistant Secretary for Oceans and International and Scientific Affairs, to the Under Secretary for Civilian Security, Democracy, and Human Rights. (B) The Special Envoy for Global Food Security, to the Under Secretary for Civilian Security, Democracy, and Human Rights. (C) The Office of Sanctions Coordination, to the Deputy Secretary of State for Economic Security. (5) To transfer the assets, liabilities, personnel, and duties of the following to the Deputy Secretary of State for Economic Security: (A) The Special Representative for Global Partnerships. (B) The Office of the Science and Technology Advisor to the Secretary. (C) The Office of Cooperative Threat Reduction. (D) The Office of Critical Technology Protection. (6) To additionally transfer assets, liabilities, personnel, and duties relating to the following functions: (A) The polar affairs functions of the Assistant Secretary for Ocean and International and Scientific Affairs, the forced labor enforcement functions of the Office to Monitor and Combat Trafficking in Persons, and all functions of the Division for Transportation Affairs, to the Assistant Secretary for Supply Chain Security redesignated pursuant to paragraph (3)(B). (B) The sanctions functions of the Assistant Secretary for Trade and Investment Security (as so redesignated pursuant to paragraph (3)(A)), the Under Secretary for Civilian Security, Democracy, and Human Rights, and the Division for Counter Threat Finance and Sanctions, to the Sanctions Coordinator relocated pursuant to paragraph (4)(C). (C) The technology and economic policy functions of the Office of China Coordination, to the Deputy Secretary of State for Economic Security. 4. Establishment of additional offices of the deputy secretary for economic security (a) Assistant secretary for strategic foreign assistance (1) Establishment Consistent with the amendment made by section 1(3), there is established in the Department of State an Assistant Secretary for Strategic Foreign Assistance. (2) Transfer The assets, liabilities, personnel, and duties of the following positions and functions shall be transferred to the Assistant Secretary established pursuant to paragraph (1): (A) The Division for Finance and Development. (B) The Office of Foreign Assistance. (C) The management functions of the Office of China Coordination with respect to the Countering PRC Influence Fund. (b) Assistant secretary for technology and innovation security (1) Establishment Consistent with the amendment made by section 1(3), there is established in the Department of State an Assistant Secretary for Technology and Innovation Security, who shall be responsible for— (A) formulating Department policy related to critical and emerging technologies, such as biotechnology, quantum technology, and microelectronics; and (B) research security, including screening responsibilities relating to security advisory opinions under the Visa Mantis program. (2) Transfer The assets, liabilities, personnel, and duties of the following positions and functions shall be transferred to the Assistant Secretary established pursuant to paragraph (1): (A) The Special Envoy for Critical and Emerging Technology. (B) The space policy functions of the Assistant Secretary for Ocean and International and Scientific Affairs. (C) The export control functions of the Office of Conventional Arms Threat Reduction, including participation in the End Use Review Committee and the multilateral Wassenaar Arrangement. (D) The space security and space policy functions of the Office of Emerging Security Challenges. (c) Office of economic analysis and targeting (1) Establishment The Secretary of State shall establish within the Department an Office of Economic Analysis and Targeting that shall be responsible for— (A) conducting economic analysis on behalf of the Deputy Secretary of State for Economic Security; (B) preparing targeting packages for the purpose of entity listings and sanctions designations, at the request of the Assistant Secretary for Technology and Innovation Security established pursuant to subsection (b) or the Sanctions Coordinator relocated pursuant to section 2(4)(C); (C) monitoring global economic and scientific trends that have implications for the economic security of the United States and its allies; and (D) establishing and maintaining the Federal database described in paragraph (3). (2) Transfer Upon establishment of the Office described in paragraph (1)— (A) the Chief Economist shall be redesignated as the Director of the Office of Economic Analysis and Targeting; (B) the assets, liabilities, personnel, and duties of the Office of the Chief Economist shall be transferred to the Office of Economic Analysis and Targeting; and (C) the Secretary of State shall take such steps as may be necessary to ensure that the Director of the Office of Economic Analysis and Targeting reports directly to the Deputy Secretary of State for Economic Security. (3) Federal database on economic security data In order to centralize public and proprietary data and provide analysis for policymakers relating to economic security, the Office of Economic Analysis and Targeting shall establish a database, which shall be accessible by all Federal employees, that includes data relevant to— (A) critical supply chains, such as supply chains for semiconductors, pharmaceuticals, critical minerals, and others; (B) global trade flows; (C) economic, trade, supply chain, and financial activities of the People’s Republic of China and the Russian Federation; (D) investment data, including inbound investment in the United States in critical and emerging technologies; (E) trends in science and technology, including scientific publications and grants awarded for scientific research; (F) activities of the People’s Republic of China companies that pose a threat to United States economic and national security; and (G) trends of forced labor in the United States supply chain originating from the People’s Republic of China or other countries at a high risk of facilitating forced labor. (d) Office of legislative solutions (1) Duties The Deputy Secretary of State for Economic Security shall establish an Office of Legislative Solutions to submit, at least annually, to Congress— (A) an identification of policies to protect United States economic security that require congressional action; and (B) proposed legislative solutions to achieve such policies. (2) Direct interaction authorized Upon establishment of the Office described in paragraph (1), the Secretary of State shall take such steps as may be necessary to ensure that such Office may interact directly with members of Congress without being required to report to any other congressional liaison office of the Department. (e) Economic security officer program The Deputy Secretary of State for Economic Security shall designate at least 20 Foreign Service officers, who are each posted at different diplomatic or consular posts that are selected for their strategic value, to represent the mission of the Deputy Secretary described in section 1(2) at such posts. Officers so designated under this subsection shall report to at least one other official serving in the District of Columbia in addition to the Deputy Secretary. 5. Authorization of appropriations and hiring authorities (a) Authorization for deputy secretary of state for economic security There is authorized to be appropriated $10,000,000 to the Deputy Secretary of State for Economic Security for the 2-year period beginning on the first October 1 on or after the date of the enactment of this Act to establish and carry out the mission of the Deputy Secretary, including for the construction of a dedicated sensitive compartmented information facility and the purchase of related equipment. (b) Authorization for director of the office of economic analysis and targeting There is authorized to be appropriated to the Director of the Office of Economic Analysis and Targeting— (1) $25,000,000 for each fiscal year to support the mission described in section 3(c); and (2) $5,000,000 for each fiscal year to acquire artificial intelligence and machine learning tools to assist with data analysis, including through the Federal database described in section 3(c)(3). (c) Hiring authority (1) Schedule C The President may establish and appoint not more than 10 candidates to positions in the excepted service at the office of the Deputy Secretary of State for Economic Security. Each such position so established shall be classified as a confidential or policy-determining character under schedule C of subpart C of part 213 of title 5, Code of Federal Regulations. (2) Competitive service The Deputy Secretary of State for Economic Security may establish and appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, not fewer than 15 candidates to positions in the competitive service (as defined in section 2102 of that title) at the office of the Deputy Secretary of State for Economic Security.