To prohibit the Secretary of Defense from entering into software source code contracts with entities with certain relationships with China, and for other purposes.
The source supplies the latest action, but no lifecycle stage.
Latest action (12 Jun 2025): Referred to the House Committee on Armed Services.
What this bill does
H.R. 3961, introduced by Representative Patrick Fallon, would prohibit the Secretary of Defense from entering into, renewing, or extending contracts for software source code with entities that have certain relationships with China. This prohibition would apply to individuals or companies that own, operate, substantially fund, or have a material interest in a facility in a covered country primarily for artificial intelligence research and development. It also covers entities that allow a covered country access to software source code that could be reverse-engineered, or that operate a data center in a covered country related to the software source code, including those operated by affiliates or on behalf of the entity by a covered country.
The bill defines a "covered country" by referencing the definition of "covered foreign entity" in the National Defense Authorization Act for Fiscal Year 2024, and a "material interest" as one significant enough to influence decisions. The Secretary of Defense could waive this prohibition if deemed necessary for U.S. national security. This section would be applicable to contracts entered into, renewed, or extended within three years of the bill’s enactment.
This bill was introduced in the House of Representatives on June 12, 2025, and has been referred to the Committee on Armed Services.
Plain-English summary generated by Bill100 AI from the official record. Always verify against the source below.
Timeline
12 Jun 2025
Referred to the House Committee on Armed Services.
Common questions
- What does H.R. 3961 do?
- H.R. 3961, introduced by Representative Patrick Fallon, would prohibit the Secretary of Defense from entering into, renewing, or extending contracts for software source code with entities that have certain relationships with China. This prohibition would apply to individuals or companies that own, operate, substantially fund, or have a material interest in a facility in a covered country primarily for artificial intelligence research and development. It also covers entities that allow a covered country access to software source code that could be reverse-engineered, or that operate a data center in a covered country related to the software source code, including those operated by affiliates or on behalf of the entity by a covered country. The bill defines a "covered country" by referencing the definition of "covered foreign entity" in the National Defense Authorization Act for Fiscal Year 2024, and a "material interest" as one significant enough to influence decisions. The Secretary of Defense could waive this prohibition if deemed necessary for U.S. national security. This section would be applicable to contracts entered into, renewed, or extended within three years of the bill’s enactment. This bill was introduced in the House of Representatives on June 12, 2025, and has been referred to the Committee on Armed Services.
- Has H.R. 3961 become law?
- The source does not supply a confirmed lifecycle stage for H.R. 3961. Check the latest action and official source below.
- Who sponsored H.R. 3961?
- H.R. 3961 was sponsored by Rep. Fallon, Pat [R-TX-4] (R-TX), with 6 cosponsors.
- What's the latest action on H.R. 3961?
- Referred to the House Committee on Armed Services. (12 Jun 2025).
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