U.S. senators propose bill to restrict foreign access to AI technology

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Senators propose AI restriction bill

Highlights

Senators Tim Scott and Bill Hagerty introduced a bill empowering the U.S. Commerce Department to block AI technology deals involving Russia, China, Iran, and North Korea.
The legislation creates a formal oversight role for the assistant secretary of commerce for ICT supply chains and preserves public access to open-source AI software.
The bill signals stricter regulatory scrutiny of cross-border AI supply chains, with limited passage chances unless attached to must-pass legislation before the summer recess.

Commerce powers and bill scope

As reported by CoinDesk, Senators Tim Scott and Bill Hagerty introduced the bill on Tuesday as part of a wider push to protect domestic AI capabilities from foreign adversaries. The proposal allows the U.S. Commerce Department to block transactions involving technology designed, developed, manufactured, or supplied by people or entities owned, controlled, or directed by foreign adversary countries.

The legislation also codifies an oversight role at the department, the assistant secretary of commerce for information and communications technology supply chains. At the same time, it seeks to preserve public access to open-source AI software.

Scott says Americans should not have to worry that China or Russia can use technology in cars, phones or networks against them. The countries currently identified as foreign adversaries include Russia, China, Iran and North Korea.

Political timing and industry implications

The proposal arrives as lawmakers face a narrowing window to move legislation before the summer recess and the midterm campaign period. That leaves the bill with limited chances of advancing on its own unless it is later attached to broader must-pass legislation.

The effort also aligns with a wider policy direction from the White House on AI. Earlier this month, President Donald Trump issued an executive order aimed at promoting U.S. AI innovation while also protecting American ingenuity and intellectual property from exploitation and theft by adversaries.

For the U.S. technology sector, the bill signals a tougher regulatory stance on cross-border AI supply chains and access to sensitive systems. It also shows that AI policy is increasingly being framed through national security and trade controls, not only through innovation and competition.

In our earlier article, we covered the ICTS Supply Chain Security Act introduced by Senators Tim Scott and Bill Hagerty to formalize and expand the U.S. Commerce Department’s powers to review and restrict foreign-linked technology tied to communications systems and AI infrastructure. We noted that the bill would create a statutory ICTS office and a Senate-confirmed assistant secretary role, while preserving protections for free speech and public access to open-source software as enforcement tools are strengthened against covered foreign adversaries.

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