S4392119th CongressWALLET

Energy Security Pacts Act

Sponsored By: Senator Coons, Christopher A. [D-DE]

Introduced

Summary

Diversify critical mineral and energy supply chains. This bill would let the State Department negotiate multiyear Energy Security Pacts with partner countries to boost reliable energy access, private investment, and resilience against economic coercion.

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 4 benefits, 0 costs, 3 mixed.

New international energy financing tools

This bill would let the Secretary use money from the "National Security Investment Programs" for fiscal year 2026 and later to support Energy Security Pacts. The Secretary would be able to transfer that money into accounts at USTDA, MCC, DFC, the Export-Import Bank, and other listed accounts. The Director could sign joint agency agreements and move funds between agencies with the consent of the other agency head. Those transferred funds could be used as a credit subsidy to support loans for pact projects.

Safeguards and rules for pacts

If enacted, every Energy Security Pact would need a written constraints analysis, clear objectives, numeric benchmarks, and an annual multiyear financial plan. Pact aid would be exempt from taxation by the partner country. Pact funds could not support projects likely to cause large U.S. job losses or serious environmental, health, or safety harms. Pacts would have to use open, competitive procurement, follow foreign-aid transparency rules, and may not exclude any energy type as a matter of policy.

Annual reports and government audits

The Director would have to send an annual report to Congress, the White House, and the Secretary until five years after enactment. The reports would describe activities, obstacles, and updates to the multiyear financial plan. The Government Accountability Office would evaluate pact project efficiency and development impact starting within two years and then report every year until the final pact ends.

Interagency council for energy pacts

The bill would require the President to form an Energy Security Pacts Council within 90 days. The Secretary would chair the council, which would include leaders from State, DFC, DOE, USAID, Ex-Im, Commerce, Treasury, DoD, and others. The council would meet at least quarterly under open-meeting rules and would coordinate pact activities and recommend priority countries each year.

New office and hiring powers

This bill would require State to create an Office of Energy Security Pacts within 180 days. The Secretary would appoint a Director to run the office and lead Country Pact Teams. The Director could sign contracts for technical help and give grants to eligible partner countries. The Under Secretary could detail staff across agencies and hire certain candidates directly, and the Director would need to notify Congress 30 days before entering a pact.

Time limits and pact rules

Pacts could run for no more than 10 years. A partner country could hold more than one pact at the same time. The authority to start new pacts would end 15 years after enactment. The Office, Director, and Council would end after the final pact expires.

Who can join an energy pact

A country would be eligible for a pact only if it meets a World Bank income test or graduation eligibility, is named strategically or commercially important by the Secretary or President, is found to have capacity by the Under Secretary, and is not a "foreign country of concern." These rules would gate which foreign governments could get pact support.

Sponsors & CoSponsors

Sponsor

Coons, Christopher A. [D-DE]

DE • D

Cosponsors

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 4/27/2026

  • John Hickenlooper

    CO • D

    Sponsored 5/14/2026

  • Sen. Curtis, John R. [R-UT]

    UT • R

    Sponsored 5/14/2026

Roll Call Votes

No roll call votes available for this bill.

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