Bill > HR3961

This bill prohibits the Secretary of Defense from entering into, renewing, or extending software source code contracts with certain entities that have connections to China. Specifically, the bill restricts contracts with entities that: (1) own, operate, or have a significant financial interest in artificial intelligence research facilities in a "covered country" (which refers to China based on definitions in another law); (2) have allowed a covered country to access software or source code in a way that could enable reverse engineering; or (3) operate data centers in a covered country related to the software, including through parent companies, subsidiaries, or affiliates. The Secretary of Defense is granted a waiver authority to override this prohibition if they determine it serves national security interests. The restrictions apply to contracts entered into, renewed, or extended within three years of the bill's enactment. The bill defines "material interest" as a financial or other significant interest that could influence decision-making. The primary goal is to protect sensitive software source code from potential exploitation by foreign entities, particularly those with ties to China, in order to safeguard national security and prevent potential technological espionage.

Military Affairs and Security

https://www.congress.gov/bill/119th-congress/house-bill/3961/all-info