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Authorizes Treasury funding and temporary hiring to build and maintain a program to identify and restrict PRC-linked military‑industrial companies, creates a Treasury-maintained Non‑SDN Chinese Military‑Industrial Complex Companies List with required reporting and a 365‑day divestment ban for U.S. persons, and gives the President delegated IEEPA sanction authority against designated foreign persons. The Act lasts until the Secretary of Commerce formally removes the People’s Republic of China from the foreign‑adversary list in 15 C.F.R. § 791.4, and it includes procedures for congressional briefings and case‑by‑case Presidential waivers; one planned amendment to the Defense Production Act is included in form only and has no substantive text in the uploaded file.
Except as otherwise provided in the Act, the term “Secretary” is defined to mean the Secretary of the Treasury.
If any provision of this Act, or the application of a provision, is held invalid, that invalidity does not affect (1) the validity of the rest of the Act and (2) the ability to apply that provision to other persons or circumstances.
Authorize $150,000,000 to be appropriated to the Department of the Treasury for each of the first two fiscal years beginning on or after the date of enactment of this Act, with amounts allowed to be transferred to the Department of Commerce to jointly conduct outreach to industry and persons affected by this Act, to carry out this Act.
Authorize the President to appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, not more than 15 individuals directly to positions in the competitive service (as defined in section 2102 of title 5) to carry out this Act.
Authorize the Secretary (Treasury) and the Secretary of Commerce to appoint, without regard to the provisions of sections 3309 through 3318 of title 5, United States Code, individuals directly to positions in the competitive service of the Department of the Treasury and the Department of Commerce, respectively, to carry out this Act.
Primary effects fall on U.S. investors, financial firms, and Treasury/Commerce operations. U.S. persons (individual and institutional investors) would face a legal prohibition to knowingly hold securities of any PRC entity placed on the Non‑SDN list after a 365‑day compliance period, imposing divestment obligations and potential transaction restrictions. Financial firms, broker‑dealers, exchanges, and asset managers will need to build screening, compliance, and reporting systems to identify listed entities and prevent prohibited holdings; these firms may also face enforcement risk and penalties for violations. Entities organized under the laws of the People’s Republic of China and PRC‑linked companies (particularly those tied to military or defense supply chains) are the direct targets and may face blocked transactions, asset freezes, and reputational/market consequences. The Executive branch (Treasury, Commerce, and the President’s office) gains expanded operational authority and funding to run the program and apply IEEPA sanctions; Congress receives specified reporting and advance‑notice rights for waivers. Because the DPA amendment contains no substantive language in the uploaded text, there is uncertainty about additional prohibitions or notification rules that could affect covered national security transactions. Overall effects include compliance costs for U.S. financial markets, constraints on U.S. capital flows to certain PRC firms, and increased Executive power to impose economic measures tied to national security.
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Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S1746-1747)
Introduced March 13, 2025 by John Cornyn · Last progress March 13, 2025
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs. (Sponsor introductory remarks on measure: CR S1746-1747)
Introduced in Senate