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S4392119th CongressWALLET

Energy Security Pacts Act

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

In Committee

Summary

Energy Security Pacts would create multiyear agreements the United States negotiates with eligible partner countries to strengthen reliable energy systems, diversify critical mineral and energy supply chains, and counter economic coercion.

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  • Partner countries would need to meet income or strategic eligibility tests and agree to an explicit budgetary contribution. Pacts would include benchmarks, a multiyear financial plan, and could last up to 10 years with at most one additional concurrent pact per country.
  • The bill would establish an Office of Energy Security Pacts at the Department of State led by a Director and a cross‑agency Energy Security Pacts Council. Funds authorized under the "National Security Investment Programs" heading for fiscal year 2026 or later could be transferred and merged with other agency accounts to carry out pact activities.
  • The pacts would require open, competitive procurement, pre‑funding assessments to avoid U.S. production displacement, and bans on military assistance or projects likely to cause significant environmental or safety hazards. The Government Accountability Office would evaluate pact projects not later than two years after enactment and annually thereafter.

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Bill Overview

Analyzed Economic Effects

5 provisions identified: 3 benefits, 1 costs, 1 mixed.

Protect U.S. jobs and ban risky funding

If enacted, the bill would bar Pact assistance for projects likely to cause substantial U.S. job loss or substantial displacement of U.S. production. The Secretary would have to assess competitiveness before funding projects. Pact funds could not be used for military assistance or training. Pact funds also could not support projects likely to cause significant environmental, health, or safety hazards. Pact money could not go to entities where a senior U.S. official or an immediate family member holds ownership or management roles.

New pact program and funding rules

If enacted, this bill would let the State Department create Energy Security Pacts and use funds authorized for fiscal year 2026 or later. Those funds could be transferred to agencies like the Development Finance Corporation, Export-Import Bank, the Millennium Challenge Corporation, and the Trade and Development Agency. The Pact Director would be able to make grants, sign contracts for technical support, and enter interagency agreements to move funds and use them as credit subsidies for loans. The President would create an interagency council to coordinate Pact work.

Congress and GAO oversight rules

If enacted, the Director would have to tell and brief Congress at least 30 days before entering a Pact and send the full Pact text and plans. The Secretary would have to notify congressional committees in writing 30 days before increasing or extending Pact assistance and before sending funds. The Comptroller General would evaluate Pact projects not later than 2 years after enactment and then every year until the final Pact expires. Pact funds would have to meet the Foreign Aid Transparency and Accountability Act rules before being used.

Time limits and end dates for Pacts

If enacted, each Energy Security Pact could last no more than 10 years. A partner country could have at most one additional Pact running at the same time. The authority to enter new Pacts would end 15 years after enactment. The Pact Director position and the interagency council would end 30 days after the final Pact expires.

Rules on Pact plans, procurement, taxes

If enacted, each Pact would need a constraints analysis, alignment with the partner country's development plans, clear goals, and yearly-updated financial plans showing U.S., partner, multilateral, and private contributions. Pacts must use open, fair, competitive, and transparent procurement for grants and contracts. Each Pact would require that U.S. assistance under the Pact be exempt from taxes by the partner country. Pacts could not, as a matter of policy, exclude any particular energy source.

Sponsors & CoSponsors

Sponsor

Coons, Christopher A. [D-DE]

DE • D

Cosponsors

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 4/27/2026

  • Sen. Hickenlooper, John W. [D-CO]

    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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