NETWORKS Act

This bill aims to protect U.S. phone and internet networks from spying and data theft by certain foreign telecom companies. It says untrusted vendors—especially some based in China—pose big risks to communications and data security, and that the U.S. should use economic tools to keep networks safe.

Starting 90 days after it becomes law, the President must use sanctions tools to block major transactions and property in the U.S. tied to foreign companies that make 5G or newer telecom tech and do business in ways that go against U.S. national security interests . There are exceptions for U.S. intelligence work and for humanitarian needs like food, medicine, medical devices, and moving aid. The President can grant 90-day waivers if needed for national security, and violations can bring penalties under existing sanctions law.

• Who is affected: Foreign telecom makers of 5G and future tech that act against U.S. security; U.S. persons and businesses handling their property or transactions in the U.S..
• What changes: The U.S. would block significant transactions and assets linked to those companies; humanitarian and intelligence activities are carved out; penalties apply for violations.
• When: Sanctions begin 90 days after the bill becomes law; waivers can be issued in renewable 90-day periods if vital to U.S. security .