# 119-s-3640: Divesting from Communist China’s Military Act of 2026

119-s-3640, Divesting from Communist China’s Military Act of 2026, is a 119th Congress bill sponsored by Sen. Scott, Rick [R-FL] (R-FL); status introduced; PRIA reads it as touching household money (as of 2026-05-15).

- Canonical: https://policyrisk.com/legislation/119-s-3640
- As of: 2026-05-15
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-s-3640
- Congress: 119
- Title: Divesting from Communist China’s Military Act of 2026
- Status: introduced
- Introduced: 2026-01-14
- Sponsor: Sen. Scott, Rick [R-FL] (R-FL)
- Cosponsors: 4
- Policy area: Finance and Financial Sector
- Touches household money: yes
- Last recorded action: 2026-05-15

## 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. - 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.

## Cosponsors (4)

- Sen. Cruz, Ted [R-TX] (R-TX), 2026-01-14T00:00:00.000Z
- Sen. Banks, Jim [R-IN] (R-IN), 2026-01-14T00:00:00.000Z
- Sen. Moody, Ashley [R-FL] (R-FL), 2026-01-14T00:00:00.000Z
- Sen. McCormick, David [R-PA] (R-PA), 2026-05-14T00:00:00.000Z

## Provisions PRIA read

- New listings and trading bans for investors: cost, medium. 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. Th…
- Definitions and one-year divest window for investors: mixed, medium. 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 resident…

## Related bills

- 119-s-1071: National Defense Authorization Act for Fiscal Year 2026
- 119-s-3752: SAVE America Act
- 119-s-401: Fair Access to Banking Act
- 119-s-524: Coast Guard Authorization Act of 2025
- 119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of 2025
- 119-s-1404: Combating Organized Retail Crime Act

## Sources
- [119-s-3640 on Congress.gov](https://www.congress.gov/bill/119th-congress/senate-bill/3640)

## Related
- [119-s-1071: National Defense Authorization Act for Fiscal Year 2026](https://policyrisk.com/legislation/119-s-1071)
- [119-s-3752: SAVE America Act](https://policyrisk.com/legislation/119-s-3752)
- [119-s-401: Fair Access to Banking Act](https://policyrisk.com/legislation/119-s-401)
- [119-s-524: Coast Guard Authorization Act of 2025](https://policyrisk.com/legislation/119-s-524)
- [119-s-186: No Taxpayer Funding for Abortion and Abortion Insurance Full Disclosure Act of…](https://policyrisk.com/legislation/119-s-186)
- [119-s-1404: Combating Organized Retail Crime Act](https://policyrisk.com/legislation/119-s-1404)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-s-3640 (as of 2026-05-15).