Commerce Dept. gets sweeping power to block tech deals with minimal oversight
S. 2041 — Information and Communications Technology and Services National Security Review Act · Filed by Elissa Slotkin (D-MI) · Introduced Jun 11, 2025 · Referred to committee
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What it does
This bill creates a new Office of Information and Communications Technology and Services (OICTS) within the Commerce Department to review and block transactions involving sensitive technology from countries deemed security threats (China, Russia, Iran, North Korea). The Secretary of Commerce gains broad authority to investigate, impose conditions on, or prohibit deals involving U.S. persons or property if they pose an 'undue risk' to national security, critical infrastructure, or the digital economy—with minimal judicial oversight and sweeping enforcement powers including subpoena authority, civil penalties up to $1 million per violation, and criminal penalties up to 20 years imprisonment.
Why we flagged it
The bill establishes a new executive authority to review, condition, and prohibit technology transactions on national security grounds. While framed as security protection, its functional character is a broad discretionary regulatory and enforcement apparatus with minimal checks.
What the text implies
- The 'undue risk' standard is undefined and subjective—no statutory threshold or objective criteria limit when the Secretary may block a transaction, creating potential for political weaponization of tech policy.
- Judicial review is confined to the D.C. Circuit with ex parte, in camera review of classified evidence—the defendant/company cannot see the government's case, making meaningful challenge nearly impossible.
The full analysis lists 5 implications of this text.
Who stands to gain
U.S. technology companies (competitive advantage via foreign competitor exclusion); Defense contractors (expanded national security rationale for procurement); Domestic semiconductor and software firms (protected from foreign acquisition and competition)