ICTS Supply Chain Security Act of 2026
Sponsored By: Senator Scott, Tim [R-SC]
Introduced
Summary
Creates a centralized enforcement and rulemaking office at the Commerce Department to secure ICTS supply chains. This bill would give the Bureau of Industry and Security an Assistant Secretary and a dedicated Office of Information and Communications Technology and Services to identify, block, or require mitigations for risky information and communications technology and services transactions involving certain countries of concern.
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- Suppliers and U.S. businesses that use ICTS tied to listed countries of concern, including the People’s Republic of China, Hong Kong, Macau, Cuba, Iran, the Democratic People’s Republic of Korea, and Russia, would face new prohibitions, licensing requirements, or negotiated mitigation plans.
- The new office would write rules, negotiate and impose mitigation measures, and must report to Congress within 180 days and then annually on actions taken.
- Violations could trigger criminal penalties up to $1 million and 20 years in prison for individuals and civil penalties equal to the greater of $1.5 million or five times the transaction value; parties would get judicial review in the U.S. Court of Appeals for the D.C. Circuit with a 180-day challenge window.
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Bill Overview
Analyzed Economic Effects
5 provisions identified: 1 benefits, 3 costs, 1 mixed.
Ban on High-Risk Foreign Tech
If enacted, Commerce would be able to prohibit buying, importing, transferring, installing, or using certain foreign-made technology and services that it finds are tied to listed countries and pose undue national security or infrastructure risks. Countries of concern would include China (including Hong Kong and Macau), Cuba, Iran, North Korea, and Russia. The rule would exclude open-source software and expressive materials. Commerce could write rules that identify high-risk transactions, require mitigations, and set licensing or authorization procedures, and it would coordinate with existing reviews like the Defense Production Act and CFIUS.
New Commerce Technology Supply Office
If enacted, the President would appoint a new Assistant Secretary for technology supply chains at Commerce, with Senate approval. The Commerce Secretary would create an Office of Information and Communications Technology and Services inside the Bureau of Industry and Security. That office would design and approve mitigation measures for risky technology transactions and must report to Congress within 180 days and every year after. Some information the office collects could be kept confidential from the public and claimants.
Large Penalties for Rule Violations
If enacted, willful violations of Part IV rules would be criminal offenses for individuals, with fines up to $1,000,000 and up to 20 years in prison where criminal liability applies. The Secretary could also impose civil fines per violation equal to the greater of $1,500,000 or five times the value of the transaction, with inflation adjustments allowed. The Secretary could revoke approvals or impose other restrictions as enforcement remedies.
Five-Year Sunset on Tech Rule Powers
If enacted, the Part IV prohibitions, requirements, and authorities would automatically end five years after the law is enacted unless Congress extends them. The termination would stop Commerce's Part IV review and mitigation powers on that sunset date. The sunset takes effect upon enactment.
Tight Court Review and Secrecy Rules
If enacted, most legal challenges to actions under Part IV would be allowed only in the U.S. Court of Appeals for the D.C. Circuit and must be filed within 180 days. The record may include classified and sensitive material submitted ex parte and in camera and not released to claimants. Most Part IV functions (except civil penalties) would not be subject to several normal Administrative Procedure Act rules, and implementation actions would be exempt from the Paperwork Reduction Act.
Sponsors & CoSponsors
Sponsor
Scott, Tim [R-SC]
SC • R
Cosponsors
Sen. Hagerty, Bill [R-TN]
TN • R
Sponsored 6/24/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov