Commerce gets sweeping power to block vehicle tech deals—with minimal public oversight
S. 2040 — Connected Vehicle National Security Review Act · Filed by Elissa Slotkin (D-MI) · 1 cosponsor · Introduced Jun 11, 2025 · Referred to committee
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What it does
This bill creates a new federal office within the Commerce Department to review and block sales or transfers of advanced vehicle technology (connected cars with wireless communications) that involve companies or countries deemed national security threats—specifically China, Russia, Iran, and North Korea. The Secretary of Commerce gains broad power to investigate transactions, impose conditions, or prohibit deals entirely if they pose 'undue risk' to critical infrastructure or national security.
Why we flagged it
The bill establishes a new executive office with broad investigative and prohibitory powers over connected vehicle transactions involving foreign entities or jurisdictions of concern. It is fundamentally a regulatory and enforcement mechanism, not a subsidy, tax provision, or commemorative act.
What the text implies
- The bill grants the Secretary of Commerce authority to impose conditions or prohibitions on vehicle sales with minimal judicial review—challenges must be filed in the D.C. Circuit within 180 days, and sensitive security information is reviewed ex parte and in camera, meaning the defendant/company may never see the government's full case.
- The definition of 'covered transaction' is extremely broad: it includes not just foreign-owned vehicle manufacturers, but any transaction involving ICTS (information and communications technology services) 'designed, developed, manufactured, or supplied by persons owned by, controlled by, or subject to a jurisdiction of concern.' This could capture domestic suppliers using foreign components or fo
The full analysis lists 5 implications of this text.
Who stands to gain
domestic automotive manufacturers (reduced foreign competition); domestic semiconductor and ICTS suppliers (protected market share); defense contractors (aligned with national security framing)