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ICTS Supply Chain Security Act

medium confidence · updated 2026-07-01

Senate bill introduced June 30, 2026 by Sens. Tim Scott and Bill Hagerty to give the Commerce Department expanded authority to block transactions involving information and communications technology and services controlled by foreign-adversary countries, while seeking to preserve public access to open-source AI software.

The ICTS Supply Chain Security Act is a bill introduced in the U.S. Senate on June 30, 2026, by Senators Tim Scott (R-S.C.), chairman of the Senate Banking Committee, and Bill Hagerty (R-Tenn.). It would expand the Commerce Department's authority to restrict "information and communications technology and services" (ICTS) transactions tied to foreign-adversary countries, and it explicitly seeks to preserve public access to open-source AI software (Source: coindesk.com).

FieldDetail
ChamberU.S. Senate
SponsorsSen. Tim Scott (R-S.C.); Sen. Bill Hagerty (R-Tenn.)
IntroducedJune 30, 2026
StatusIntroduced; not yet advanced
Implementing agencyU.S. Department of Commerce

Provisions

The bill would give the Commerce Department the ability to block "transactions involving technology designed, developed, manufactured, or supplied by persons owned, controlled, or directed by foreign adversary countries." It would codify a Commerce Department position to oversee this authority — an assistant secretary of commerce for information and communications technology supply chains — and would seek to maintain public access to open-source AI software (Source: coindesk.com).

The measure builds on the existing ICTS supply-chain regime, under which "foreign adversaries" are nations determined to be actively working against U.S. national security — currently Russia, China, Iran, and North Korea. Coverage of AI technology developed by or subject to the control of these countries is a central concern of the bill; Scott said "Americans should not have to worry that China or Russia can use the technology in our cars, phones, or networks against us" (Source: coindesk.com).

Prospects

The bill was introduced late in the congressional session, as Congress moved toward its summer break and the midterm elections, leaving it little opportunity to advance on its own unless attached to a must-pass vehicle (Source: coindesk.com; Source: coindesk.com). Scott and Hagerty previously worked together to pass the GENIUS Act, the stablecoin law enacted in the prior session.

The bill follows President Donald Trump's June 2026 executive order "Promoting Advanced Artificial Intelligence Innovation and Security," which stated an intent to "protect American ingenuity and intellectual property from exploitation and theft by adversaries" (Source: coindesk.com; see EO — Promoting Advanced AI Innovation and Security (Trump, signed June 2, 2026) and Executive Order: Promoting Advanced Artificial Intelligence Innovation and Security (signed June 2, 2026)). It also arrives amid the broader U.S. use of trade and export tools to shape access to advanced AI, documented under Export Controls (AI).

Relationships

Sources

  • CoinDesk, "U.S. senators seek to block foreign adversaries from AI technology in new bill" (Jun 30, 2026) — cites the bill text posted by the Senate Banking Committee (Source: coindesk.com)
  • ICTS Supply Chain Security Act bill text, Senate Banking Committee (Source: banking.senate.gov)