Sponsors (39)
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 controls over connected-vehicle hardware and software and creates clearer coverage and authorization processes, but does so at the cost of higher compliance and enforcement burdens, potential supply‑chain and repair disruptions, and broader executive discretion with limited transparency and judicial review.
Drivers, vehicle owners, manufacturers, and the public face reduced risk that foreign-controlled hardware, software, or ML/AI in connected vehicles can enable remote manipulation or data exfiltration.
Manufacturers, importers, and regulators get clearer definitions and coverage rules (including for ML/AI models and updates), reducing legal uncertainty about which vehicle components and transactions are regulated.
Manufacturers, vendors, and suppliers receive a multi-year compliance timeline (phased dates through 2030–2032), giving firms time to redesign products or change sourcing.
Consumers, vehicle owners, repair shops, and suppliers face higher costs and significant supply-chain disruptions as bans, sourcing changes, and compliance costs reduce competition and parts availability.
Giving the Secretary broad emergency and exclusion authority (with classified evidence and limited judicial stays) risks reduced transparency, limited judicial review, and substantial executive discretion over market access.
Steep civil penalties and strict declaration rules expose businesses (importers, manufacturers, resellers) to large financial and legal risks that could chill trade and raise compliance costs.
Based on analysis of 8 sections of legislative text.
Prohibits import, manufacture, sale, resale, and integration of connected vehicles, hardware, and software tied to China, Russia, Iran, or North Korea with phased effective dates (2027–2032).
Bans imports, sales, and certain uses of connected vehicles, vehicle connectivity hardware, and covered software tied to specified foreign adversary countries, starting January 1, 2027 for vehicles and covered software and with broader hardware prohibitions phased in by January 1, 2030. It directs the Commerce Department (acting through BIS/Under Secretary for Industry and Security) and the Secretary (implied DOT for consultation) to implement, coordinate, and report on enforcement, and authorizes rulemaking to align existing BIS rules with the Act’s prohibitions. The law defines covered vehicles, components, and software, identifies "covered countries" (China, Russia, Iran, North Korea), requires annual reports to Congress on enforcement and impacts, preserves regulatory continuity if parts are invalidated by courts, and tasks agencies to consult with other federal bodies to avoid conflicting requirements. Rulemaking deadlines are set to phase in prohibitions and reevaluate existing exclusions by notice-and-comment procedures between 2030 and 2032.