Federal AI blacklist targets foreign tech—but definitions are dangerously vague

What it does

This bill requires the federal government to create and maintain a public list of artificial intelligence systems developed or produced by foreign adversaries (like China, Russia, Iran, North Korea). Federal agencies must review their AI use within 90 days and remove or exclude any AI from that list, unless they get a written exception approved by the Office of Management and Budget and Congress—which can be granted for research, testing, counterterrorism, or critical mission functions.

Why we flagged it

The bill's core function is to identify and exclude AI systems from foreign adversaries in federal procurement and use. It is a supply-chain security measure, not a broad AI regulation or innovation bill, despite the generic title.

What the text implies

• The 20% foreign ownership threshold for 'foreign adversary entity' status may inadvertently capture U.S. companies with significant foreign investment or multinational structures, creating compliance uncertainty.
• The exception process (research, testing, counterterrorism, mission-critical) is broad and agency-discretionary; agencies can justify almost any AI use by claiming one of these categories, potentially undermining the bill's intent.
• No explicit mechanism for public challenge or appeal of the foreign adversary AI list; companies and agencies have limited recourse if incorrectly listed.
• The bill does not define 'produced or developed by' a foreign adversary—unclear whether this covers AI trained on foreign data, licensed from foreign entities, or merely hosted on foreign servers.

Who it affects

Citizens benefit from transparency about which AI systems the government uses and from potential protection against foreign-controlled AI in federal systems. However, the bill's vague definitions of 'foreign adversary' and 'AI' may create uncertainty for U.S. tech companies with international operations, and the exception process is opaque—agencies can bypass restrictions with minimal public scrutiny if they claim research or mission-critical need.

Who stands to gain

• U.S. semiconductor and AI hardware manufacturers (AMD, HPE, CSCO, CTSH)
• U.S. software and AI service providers not on the foreign adversary list
• Domestic cybersecurity and compliance consulting firms

Named in the bill

Federal Acquisition Security Council, Office of Management and Budget (OMB), Executive agencies (all federal departments), Foreign adversaries (China, Russia, Iran, North Korea per 10 U.S.C. 4872), AMD, HPE, Cisco (CSCO), Cognizant (CTSH), Verisign (VRSN), National Artificial Intelligence Initiative Act of 2020, John S. McCain National Defense Authorization Act for Fiscal Year 2019

Where it stands

1 cosponsor: 1 Democrats.

• Jun 25, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Jun 25, 2025 — Referred to Senate Committee on Homeland Security and Governmental Affairs · Congress.gov: “Read twice and referred to the Committee on Homeland Security and Governmental Affairs”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

1 lobbying clients named this bill on 2 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $60,000 in lobbying spend. A filing names 26 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 0% of bills with at least one filing.

Rick Scott, the sponsor, reported $69,750 in PAC receipts in the 2026 cycle.

• American Security Fund — $60,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.