Official title: 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 April 29, 2026 by Bernardo Moreno · Last progress April 29, 2026
The bill strengthens national‑security protections for connected-vehicle hardware/software and builds a coordinated governance regime—reducing cyber and supply‑chain risks—but does so at the cost of higher prices, increased compliance burdens, regulatory uncertainty, and privacy/sovereignty tradeoffs that could disproportionately affect consumers, dealers, and globally integrated suppliers.
Vehicle owners and everyday drivers face lower risk of malicious remote control, espionage, or data exfiltration from connected-vehicle components because the bill enables prohibitions and mitigation of covered foreign‑adversary hardware/software.
Consumers, industry, and regulators get a clearer, more coordinated governance framework (authorization lists, clarified Commerce authority, advisory committees, required reporting, and continuity authorities) that improves oversight, enforcement, and cross‑agency coordination on connected‑vehicle ICT risks.
U.S. automakers, domestic suppliers, and secure-software firms are likely to gain market protection and increased demand for domestically authorized components, helping preserve jobs and competitiveness versus covered foreign producers.
Car buyers and everyday consumers may face higher vehicle prices and reduced model/feature availability because import restrictions, compliance costs, and component bans can raise costs and limit supply.
U.S. exporters, automotive firms, and workers risk trade retaliation and lost market access if the law targets producers in specific countries, which could cost jobs and harm related industries.
Manufacturers, suppliers, dealers (including used‑vehicle dealers), and small businesses will face increased compliance costs, administrative burdens, and potential disruptions to resale and repair markets.
Based on analysis of 8 sections of legislative text.
Bans U.S. trade and commerce in connected vehicles, covered software, and specified hardware tied to China, Russia, Iran, or North Korea, phasing prohibitions from 2027 to 2032 and requiring annual enforcement reports.
Prohibits importing, manufacturing, selling, or introducing into interstate commerce connected vehicles, certain connected-vehicle hardware, and covered vehicle software that are tied to specified ‘‘covered countries’’ (China, Russia, Iran, North Korea) or entities they control. The law phases in prohibitions beginning January 1, 2027 for vehicles and covered software and phases additional hardware prohibitions beginning January 1, 2030 (with some actions required by 2032), requires regular reporting to Congress, and preserves existing Commerce Department rules while directing agency coordination and advisory consultations. Creates statutory definitions for connected vehicles, vehicle connectivity systems, covered software (including ML/AI models that enable vehicle-level automated driving decisions), country-of-origin and ownership thresholds, and enforcement tools; authorizes regulatory reviews, advisory consultations, and annual effectiveness reports; and includes severability and regulatory-preservation clauses to coordinate with existing BIS/Commerce rules on ICTS and connected vehicles.