Divesting from Communist China’s Military Act of 2026
Sponsored By: Senator Scott, Rick [R-FL]
Introduced
Summary
Would force Treasury to add Defense-identified Chinese military companies to the OFAC non-SDN list and trigger U.S. investment bans. It would require Treasury to list an entity within 90 days of a Defense identification, apply Executive Order 13959 prohibitions within 60 days of listing, and give U.S. persons a one-year window to buy or sell securities only to divest.
Show full summary
- U.S. investors and other U.S. persons: Would be allowed to buy or sell publicly traded securities of a listed entity only for the purpose of divesting during the one-year period after listing; EO 13959 restrictions would apply within 60 days of listing.
- Treasury and the Office of Foreign Assets Control: Would have to add Defense-identified entities to the Non-SDN Chinese Military-Industrial Complex Companies List within 90 days of a Defense identification and then enforce EO 13959 prohibitions within 60 days of inclusion.
- Identified entities described as Chinese military companies: Would face U.S. investment restrictions and a mandated divestment window that limits normal market access.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
Limits on investing in Chinese military firms
If enacted, the bill would require Treasury to add any firm the Defense Department identifies as a Chinese military company to OFAC's NS-CMIC list within 90 days. If enacted, most investment bans in Executive Order 13959 would apply to that firm no later than 60 days after listing. If enacted, a United States person would be allowed, for one year after listing, to buy or sell its publicly traded securities solely to divest. The bill would also define who counts as a United States person and what counts as a publicly traded security.
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