To ensure the alignment of economic and foreign policies, to position the Department of State to reflect that economic security is national security, and for other purposes.

This bill reshapes the U.S. State Department so economic security is treated like national security. It creates a new Under Secretary for Economic Affairs to lead work on trade, energy, technology, sanctions, space, and natural resources, and to boost chances for U.S. companies in foreign markets. It also places the CHIPS Act’s international technology fund under this office’s oversight and funds these duties in fiscal years 2026–2027 . To guide decisions, it establishes a Chief Economist and an Office of the Chief Economist to deliver analysis and regular reports on the nation’s international economic strategy.

New teams focus on key areas: a Commercial Diplomacy bureau to help U.S. businesses find opportunities, win contracts overseas, and attract investment at home ; an Office of Subnational Diplomacy to help states and cities attract foreign investment, host major events, and guard against foreign influence locally ; an Energy Security and Diplomacy bureau to secure energy and critical mineral supply chains and lead international energy policy work ; a Water, Environment, and Space affairs bureau to lead on oceans, wildlife, pollution, and civil/commercial space policy, including keeping the official U.S. space object registry ; and a Sanctions Policy bureau to plan, coordinate, and enforce U.S. sanctions with partners and across agencies.

• Who is affected: U.S. businesses selling or investing abroad, state and local governments, and sectors tied to energy, critical minerals, oceans, and space .
• What changes: New Under Secretary for Economic Affairs; a Chief Economist and office; new bureaus for Commercial Diplomacy, Energy Security and Diplomacy, Water/Environment/Space, and Sanctions; and State Department oversight of the CHIPS international technology fund .
• When: Funding is authorized for fiscal years 2026–2027 for these offices and activities .