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119-s-3640119th CongressWALLET

Divesting from Communist China’s Military Act of 2026

Sponsored By: Senator Scott, Rick [R-FL]

Introduced

Summary

Directs the Treasury to add companies the Defense Department identifies as Chinese military-linked to the U.S. sanctions list and forces a time-limited investor divestment process. It ties listing to existing Executive Order 13959 prohibitions and sets clear timing for enforcement.

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  • U.S. investors and U.S. persons would have a one-year divestment window and may buy or sell publicly traded securities of a listed entity only to divest during that period.
  • If the Department of Defense identifies an entity as a Chinese military company, the Treasury Secretary would have 90 days to place it on the Non-SDN Chinese Military-Industrial Complex Companies List and 60 days after listing to apply the prohibitions in Executive Order 13959.
  • The bill defines key terms, clarifies the scope of covered securities and U.S. persons, and designates the Senate Banking, Housing, and Urban Affairs Committee and the House Financial Services Committee as the relevant congressional committees.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 0 benefits, 1 costs, 1 mixed.

New listings and trading bans for investors

If enacted, the bill would require Treasury to add to the NS-CMIC List any company the Defense Department identifies as a Chinese military company within 90 days, if not already listed. It would make the trading bans in Executive Order 13959 apply no later than 60 days after a company is listed. That could bar U.S. persons from buying some securities and may force sales or portfolio changes. A limited one-year divestment exception exists, but ordinary purchases would be restricted after the ban takes effect.

Definitions and one-year divest window for investors

If enacted, the bill would define "publicly traded security" to include exchange-traded and over-the-counter securities, foreign-currency‑denominated securities, and derivatives that give investment exposure. It would define "United States person" to include U.S. citizens, lawful permanent residents, entities organized under U.S. law (including foreign branches), and any person in the United States. The bill would also let a U.S. person, during the one-year period starting on the date a company is listed, buy or sell those securities only to divest holdings. After that one-year window ordinary purchases and transactions would be subject to the trading bans.

Sponsors & CoSponsors

Sponsor

Scott, Rick [R-FL]

FL • R

Cosponsors

  • Sen. Cruz, Ted [R-TX]

    TX • R

    Sponsored 1/14/2026

  • Sen. Banks, Jim [R-IN]

    IN • R

    Sponsored 1/14/2026

  • Sen. Moody, Ashley [R-FL]

    FL • R

    Sponsored 1/14/2026

  • Sen. McCormick, David [R-PA]

    PA • R

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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