Sponsors (48)
Official title: To prohibit the importation, manufacture, sale, resale, or introduction into interstate commerce in the United States of connected vehicles and related software and hardware associated with foreign adversaries.
Introduced May 11, 2026 by John Moolenaar · Last progress May 11, 2026
The bill strengthens national security and vehicle cybersecurity by restricting risky foreign-controlled vehicle software and hardware and clarifying coverage, but does so at the cost of higher compliance burdens, potential supply‑chain disruptions and repair costs, expanded agency discretion with limited judicial oversight, and regulatory uncertainty during phased implementation.
Drivers, passengers, vehicle owners, and the public face a lower risk of remote manipulation or data exfiltration because the law restricts foreign-controlled vehicle software and hardware (including ML/AI) that create cybersecurity vulnerabilities.
Manufacturers, vendors, and regulators gain clearer coverage (explicitly including ML/AI models and broader 'transaction' definitions) and a multi-year compliance timeline (through 2030–2032), reducing legal uncertainty and giving industry time to redesign products or find alternative suppliers.
Importers and manufacturers have a path to safe imports via an authorization and review process, and the bill requires a publicly published list with criteria and rationale (by Jan 1, 2027), improving transparency about what is permitted.
Vehicle owners, repair shops, and buyers risk higher vehicle and repair costs, reduced parts availability, and slower adoption of connected technologies if major suppliers are excluded or key parts are barred or restricted.
Companies, importers, and suppliers could face broad agency discretion backed by classified evidence and limited judicial stays, reducing transparency, due process, and opportunities for timely judicial review.
Importers, manufacturers, and sellers face substantial compliance costs and steep civil penalties (the greater of $1.5M or five times transaction value, with daily violation treatment), increasing legal and financial risk for businesses.
Based on analysis of 8 sections of legislative text.
Bans sales, imports, manufacturing, resale, and integration of connected vehicles, covered software, and covered hardware tied to China, Russia, Iran, or North Korea, phased in 2027–2030 with regulatory rulemaking to 2032.
Prohibits importing, manufacturing, selling, reselling, or introducing into interstate commerce certain connected vehicles, vehicle connectivity hardware, and covered software when those items originate in or are substantially controlled by entities from specified "covered countries" (China, Russia, Iran, North Korea). The law phases in transaction bans starting January 1, 2027 for vehicles and covered software ties, and additional prohibitions on covered hardware beginning January 1, 2030, with a regulatory rulemaking window through 2032 for items not already covered by an existing Commerce Department regulation. Requires the Secretary to consult federal advisory committees and other agencies, produce annual enforcement and impact reports to Congress, and preserves Commerce Department authority to apply an existing BIS rule on connected vehicles; it also includes severability and regulatory-continuity provisions allowing reinstatement of prior rules if parts of the Act are invalidated by a court.