House Panel to Advance AI Chip Security Act

The House Foreign Affairs Committee is expected to mark up its version of the Chip Security Act, which aims to combat the smuggling of advanced AI chips. The legislation, championed by Chair Brian Mast, mirrors a Senate bill and reflects bipartisan concern over adversaries acquiring critical hardware. If passed, the act could impose new reporting mandates on federal technology contractors and alter agency acquisition strategies.

- The legislation, officially titled the "AI Overwatch Act," would establish a congressional review mechanism for exports of advanced AI chips, modeling it on the existing process for foreign military sales. - It specifically grants the House Foreign Affairs and Senate Banking Committees a 30-day window to review and potentially pass a resolution to block export licenses to "countries of concern" such as China, Russia, Iran, and North Korea. - The bill was introduced by Chairman Mast in December 2025 as a direct response to an executive branch decision to allow sales of high-performance chips, like Nvidia's H200, to China under a case-by-case review policy. - Advanced AI chips are classified by supporters of the bill as dual-use technologies critical for military applications, including surveillance, cyber operations, and developing autonomous weapons systems. - The push for stricter controls is underscored by Justice Department prosecutions of smuggling networks that have illicitly funneled millions of dollars worth of advanced processors to China, circumventing existing export laws. - The act would codify national security requirements from the Commerce Department's H200 export control rule, adding a layer of legislative oversight to the Bureau of Industry and Security's (BIS) licensing authority. - Another related legislative effort, the "GAIN AI Act," which passed in the Senate's version of the NDAA, focuses on a different aspect of the supply chain by giving U.S. buyers a "right of first refusal" before advanced chips can be sold overseas. - Key cosponsors include the chairs of the House China Select Committee and the Intelligence Committee, and the bill has drawn public support from policy groups including the Foundation for Defense of Democracies Action and Americans for Responsible Innovation.

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