The bill strengthens tools to deter and punish theft of trade secrets and mishandling of defense information—improving national security and victim remedies—while increasing criminal exposure for employees and contractors, raising corporate liability and compliance costs, and risking chilled disclosures and legal uncertainty.
Individuals who steal trade secrets to aid covered foreign nations will face substantially longer prison terms, reducing incentives for espionage and helping protect critical infrastructure and national interests.
Organizations that steal or facilitate theft of trade secrets face very large fines (the greater of $20M or five times the value), increasing deterrence and creating a source of potential compensation for victims.
The bill ties enhanced penalties to clear, defined "severe harm" (impacting critical infrastructure), focusing enforcement on high‑risk conduct rather than low‑level breaches.
Federal employees, contractors, and servicemembers face increased criminal liability from broader or vaguer prohibitions on handling defense or classified information, raising the risk of prosecution for routine or contested conduct.
Stronger criminalization may chill whistleblowing and lawful disclosures to oversight bodies, reducing accountability and complicating executive branch oversight.
Very large corporate fines (≥ $20M or 5x value) could impose heavy costs on U.S. companies, potentially leading to layoffs, reduced R&D investment, or other adverse economic effects if firms are held liable for employees' actions.
Based on analysis of 3 sections of legislative text.
Increases criminal penalties and corporate fines for economic espionage when committed to advance the interests of a designated foreign nation; adds material to defense-information law.
Introduced June 23, 2025 by Pat Harrigan · Last progress June 23, 2025
Expands federal criminal penalties for economic espionage and adds unspecified changes to the statute governing gathering/transmitting defense information. It raises mandatory prison terms and fines when the theft of trade secrets is done to advance the interests of a foreign "covered nation," and establishes much larger financial penalties for organizations based on the value of the stolen secrets. The bill also inserts new material into the statute that governs unlawful handling of defense information, but the text of that insertion is not provided, so its effects are unknown.