President gets sweeping power to sanction foreign telecom firms with minimal oversight
H.R. 1795 — NETWORKS Act · Filed by Chrissy Houlahan (D-PA) · 3 cosponsors · Introduced Mar 3, 2025 · Referred to committee
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What it does
This bill authorizes the President to impose economic sanctions on foreign telecommunications companies (particularly Chinese firms) that develop 5G/6G technology and conduct business in ways the President determines threaten U.S. national security. The sanctions block these companies' property and financial transactions in the U.S. The bill carves out humanitarian aid, intelligence activities, and allows the President to waive sanctions for 90-day periods if deemed vital to national security.
Why we flagged it
The bill's core mechanism is a delegation of broad presidential power to impose economic sanctions on foreign telecom vendors based on a subjective national-security determination. It is not primarily a regulatory reform or a direct appropriation, but rather an authorization of executive economic coercion.
What the text implies
- The President's power to designate foreign telecom companies as threats is not subject to judicial review or detailed congressional approval—only a waiver mechanism requiring presidential reporting to Congress, which is not a veto. This concentrates foreign-policy and economic power in the executive branch with limited checks.
- The bill's definition of 'contrary to national security interests' is undefined and subjective, giving the President discretion to target companies based on geopolitical considerations unrelated to actual espionage or technical vulnerability. This could be weaponized against competitors or allies.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. telecommunications equipment manufacturers (Cisco, Juniper, etc.); U.S. wireless carriers (Verizon, AT&T, T-Mobile) if foreign competition is reduced; U.S. semiconductor and 5G/6G technology firms facing reduced foreign competition