AI OVERWATCH Act
Sponsored By: Senator Sen. Banks, Jim [R-IN]
Introduced
Summary
This bill would create strict new controls on exports of advanced integrated circuits (ICs), pairing tighter licensing and congressional review with a required whole-of-government "American AI Victory Strategy." It defines layered categories of chips — covered integrated circuits (CICs) and restricted integrated circuits (RICs) — using performance metrics and existing Commerce rules to decide which parts are controlled or banned for certain countries of concern.
Show full summary
- U.S. semiconductor companies and exporters would face new license rules and oversight. Licenses for CICs and RICs to countries of concern would need detailed certifications to Congress and a minimum 30-day waiting period before approval.
- Countries of concern (including the PRC, Russia, Iran, North Korea, Cuba, and others in Country Group D:5) would be blocked or tightly restricted from receiving RICs and face near-term denials for CIC exports until a government AI strategy is submitted.
- Trusted U.S. persons and allied countries get a possible exemption pathway. The bill creates strict standards for designation, audits, ownership limits, and a secure expansion option for allies.
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Bill Overview
Analyzed Economic Effects
6 provisions identified: 1 benefits, 2 costs, 3 mixed.
New restricted category for top chips
If enacted, the bill would create a narrower "restricted integrated circuit" category for the highest-performance covered chips. Examples include chips with total processing performance of 21,000 or more, or meeting specified high performance-density thresholds. It would also capture certain chips first marketed after January 1, 2026 that meet lower thresholds like total processing of 4,800. Products containing these restricted chips would face stricter export prohibitions. Devices not meant for data centers and CPUs that are not GPUs would be excluded.
Tighter chip exports to certain countries
If enacted, the bill would require a specific license for exports, reexports, or in‑country transfers of covered or restricted chips to entities located in, or whose ultimate parent is headquartered in, a listed "country of concern." The bill would bar general licenses, require detailed pre-approval notice and multiple security certifications to Congress at least 30 days before approval, and extend reviews to 60 days for applications made between July 10 and September 7. BIS must deny such license requests within one business day and continue denials until 14 days after the AI strategy is submitted. All licenses for restricted chips to those entities must be denied, and any prior licenses issued before enactment would terminate.
Which chips count as covered
If enacted, the bill would define "covered integrated circuits" to include chips and systems listed under ECCN 3A090/4A090 (and similar entries) and any integrated circuit meeting set performance or bandwidth thresholds. Key numeric thresholds include total processing performance of 4,800; or 2,400 if performance density ≥1.6; or 1,600 if performance density ≥3.2, plus DRAM/interconnect bandwidth criteria. Products that contain those chips would also be covered. Devices not designed or marketed for data-center use and CPUs that are not GPUs would be excluded.
Trusted U.S. person exemption for chips
If enacted, the bill would create a Trusted United States Person (TUSP) exemption that can let certain exports or transfers of covered chips proceed without usual license requirements. The chips could not go to Macau, Hong Kong, or Country Group D:5 countries and must remain under ownership and control of the trusted U.S. person once in operation. The Commerce Under Secretary would have 90 days after enactment to get public input and write rules. Rules must include physical and cybersecurity controls, limits on moving most chip processing capacity abroad, a 10% ownership cap for entities tied to countries of concern, strong know‑your‑customer checks, and annual audits. The program could later be considered for limited allied-country expansion.
New American AI strategy required
If enacted, the bill would require the Secretary of Commerce, working with Defense, Energy, State, OSTP, and the DNI, to send Congress an "American Artificial Intelligence Victory Strategy." The plan would assess national security and economic risks if the People's Republic of China gains an AI edge. It would include a FY2026–2027 quantitative assessment of PRC chip production and scenario analyses. Other export-timing rules in the bill would depend on when this strategy is submitted.
Commerce can change chip thresholds
If enacted, the bill would let the Commerce Under Secretary update technical parameters that define covered chips starting 24 months after the AI strategy is submitted. Any change could be made only if it does not harm national security. The Secretary must notify congressional committees at least 30 days before the change, get majority approval from the Operating Committee for Export Policy, and update and resubmit the AI strategy.
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Sponsors & CoSponsors
Sponsor
Sen. Banks, Jim [R-IN]
IN • R
Cosponsors
Sen. Warren, Elizabeth [D-MA]
MA • D
Sponsored 4/30/2026
Sen. Cotton, Tom [R-AR]
AR • R
Sponsored 4/30/2026
Sen. Shaheen, Jeanne [D-NH]
NH • D
Sponsored 4/30/2026
Sen. Ricketts, Pete [R-NE]
NE • R
Sponsored 4/30/2026
Sen. Cortez Masto, Catherine [D-NV]
NV • D
Sponsored 4/30/2026
Roll Call Votes
No roll call votes available for this bill.
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