Sponsors
The bill tightens procurement rules to protect federal systems and employee data from majority-foreign-owned software vendors, trading broader supplier access and potentially higher costs, delays, and legal/compliance burdens for contractors.
Federal agencies would gain a clear contractual vetting mechanism (certification and FAR amendments) plus enforcement (suspension/debarment) to block majority-foreign-owned vendors from supplying certain software, reducing foreign access to sensitive government systems.
Federal employees' sensitive data (SSNs, medical records, PII) would face reduced risk of exposure to companies majority‑owned by non‑U.S. citizens.
Agency heads retain the ability to grant narrowly tailored waivers for national-security needs with 30-day congressional notification, preserving operational flexibility in exceptional cases.
Taxpayers and federal programs could face higher costs and procurement delays if otherwise-preferred vendors are ineligible, potentially raising overall program costs and slowing service delivery.
U.S. agencies could lose access to technologically superior or specialized software from majority-foreign-owned vendors, degrading service quality or operational capability for agency users.
Offerors may face increased legal and compliance risk — including perjury exposure under certification requirements and litigation over ownership definitions — raising costs and discouraging participation by complex multinational firms.
Based on analysis of 2 sections of legislative text.
Prohibits federal agencies from entering into, renewing, or extending contracts for software systems that store, process, or provide access to sensitive personal information of 500 or more federal employees if the vendor is majority‑owned by non‑U.S. citizens. Contractors must certify under penalty of perjury they are not majority foreign‑owned; agencies may grant case‑by‑case waivers for national security with a written justification submitted to congressional committees within 30 days. Violations can trigger contract termination, debarment, suspension, and other remedies, and the Federal Acquisition Regulation must be updated within 180 days of enactment to implement the rule.
Introduced February 20, 2026 by Lauren Boebert · Last progress February 20, 2026