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National Critical Capabilities Defense Act of 2023
12/20/2024, 9:06 AM
Summary of Bill HR 3136
One of the key provisions of the bill is the establishment of a National Critical Capabilities Defense Council, which will be responsible for identifying and assessing critical defense capabilities. The council will work closely with the Department of Defense and other relevant agencies to develop a comprehensive strategy for maintaining and enhancing these capabilities.
Additionally, the bill calls for increased funding for research and development in key defense areas, such as cybersecurity, space defense, and advanced weapons systems. This funding will be used to ensure that the United States remains at the forefront of technological innovation in the defense sector. Furthermore, the bill emphasizes the importance of collaboration with international partners to strengthen global security and defense capabilities. It calls for increased cooperation with allies and partners to address common threats and challenges. Overall, the National Critical Capabilities Defense Act of 2023 aims to ensure that the United States maintains a strong and resilient defense posture in the face of evolving threats and challenges. By prioritizing critical defense capabilities and investing in research and development, the bill seeks to enhance national security and protect the country's interests both at home and abroad.
Congressional Summary of HR 3136
National Critical Capabilities Defense Act of 2023
This bill establishes a notification process for certain U.S. investment (known as outbound investment) involving national critical capabilities sectors in countries of concern (e.g., China and Russia). National critical capabilities sector includes, among others, a sector involving semiconductor manufacturing and advanced packaging, artificial intelligence, active pharmaceutical ingredients, or automobile manufacturing.
Specifically, the bill directs the President to establish a Committee on National Critical Capabilities, which must establish regulations to carry out this bill.
The bill requires a U.S. business or individual, 90 days before undertaking a covered activity (e.g., investment), to submit a written notification to the committee. The committee may review a covered activity that is the subject of a notification to determine if the activity poses a risk to U.S. national security. The bill outlines the factors to be considered during this review.
The committee may, if it has reason to believe that a covered activity poses a risk to national security, take certain actions to mitigate the risk posed by the activity. Further, the committee may prohibit or regulate covered activities (with exceptions).
Additionally, the committee must determine the sensitivities and risks for sourcing goods, materials, and technologies needed for national critical capabilities sectors.
The bill outlines enforcement mechanisms and establishes civil penalties for violations.
The bill directs (1) the President to conduct bilateral and multilateral engagement with U.S. allies and partners, and (2) the committee to develop a strategy to work with these countries and provide technical assistance.
