Protecting AI and Cloud Competition in Defense Act of 2025
Latest action (15 May 2025): Introduced
What this bill does
H.R. 3434, the Protecting AI and Cloud Competition in Defense Act of 2025, would set new rules for how the Department of Defense buys cloud computing, data infrastructure, and artificial intelligence "foundation model" services. It would require the Secretary of Defense to use competitive award processes for these procurements, ensure the government retains exclusive rights to its own data, reduce barriers for small businesses and nontraditional contractors, and favor multi-cloud (interoperable, multi-vendor) technology unless doing so is infeasible or a security risk. It also directs updates to defense acquisition regulations so that government-furnished data used by contractors cannot be used to train or improve companies' commercial products without DoD authorization, with penalties for violations and a process for national-security exemptions.
The bill primarily affects large cloud, data infrastructure, and AI/foundation-model companies doing significant business with DoD (those with contracts totaling at least $50 million in a given year), as well as smaller and nontraditional contractors seeking to compete for defense AI-related work. It also affects DoD acquisition officials, who would face new contracting and oversight requirements, and Congress, which would receive annual reports (starting January 2027, for four years) on competition, market concentration, and exemptions granted.
The bill was introduced on May 15, 2025, by Rep. Pat Fallon with two cosponsors, and referred to the House Armed Services Committee. It has not yet received a committee vote, floor vote, or further congressional action.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Official summary
This bill is in the first stage of the legislative process. It was introduced into Congress on May 15, 2025. It will typically be considered by committee next before it is possibly sent on to the House or Senate as a whole.
Common questions
- What does H.R. 3434 do?
- H.R. 3434, the Protecting AI and Cloud Competition in Defense Act of 2025, would set new rules for how the Department of Defense buys cloud computing, data infrastructure, and artificial intelligence "foundation model" services. It would require the Secretary of Defense to use competitive award processes for these procurements, ensure the government retains exclusive rights to its own data, reduce barriers for small businesses and nontraditional contractors, and favor multi-cloud (interoperable, multi-vendor) technology unless doing so is infeasible or a security risk. It also directs updates to defense acquisition regulations so that government-furnished data used by contractors cannot be used to train or improve companies' commercial products without DoD authorization, with penalties for violations and a process for national-security exemptions. The bill primarily affects large cloud, data infrastructure, and AI/foundation-model companies doing significant business with DoD (those with contracts totaling at least $50 million in a given year), as well as smaller and nontraditional contractors seeking to compete for defense AI-related work. It also affects DoD acquisition officials, who would face new contracting and oversight requirements, and Congress, which would receive annual reports (starting January 2027, for four years) on competition, market concentration, and exemptions granted. The bill was introduced on May 15, 2025, by Rep. Pat Fallon with two cosponsors, and referred to the House Armed Services Committee. It has not yet received a committee vote, floor vote, or further congressional action.
- Has H.R. 3434 become law?
- Not yet. As of 15 May 2025, H.R. 3434 is introduced.
- Who sponsored H.R. 3434?
- H.R. 3434 was sponsored by Rep. Patrick “Pat” Fallon [R-TX4] (Republican-TX), with 3 cosponsors.
- What's the latest action on H.R. 3434?
- Introduced (15 May 2025).
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