United States of America: Bill to prohibit the Secretary of Defence from entering into software source code contracts with entities with certain relationships with China was introduced to House of Representatives (Bill No. HR 3961)

On 12 June 2025, the bill to prohibit the Secretary of Defence from entering into software source code contracts with entities with certain relationships with China, and for other purposes was introduced to the United States House of Representatives. The Bill prohibits the Department of Defence from entering into, renewing, or extending software source code contracts with entities that have certain ties to China. The Bill applies to software and artificial intelligence (AI) development firms that either operate or have significant interests in Chinese AI research facilities, have granted China access to source code that could enable reverse engineering, or are connected to data centres in China handling such code. A waiver may be granted if the Secretary of Defence determines it to be in the national security interest of the United States. The prohibition will apply to relevant contracts entered into within three years of the Bill’s enactment.