Contracting America First Act
HB7604, titled the Contracting America First Act, would bar federal agencies from entering into, renewing, or extending contracts for certain covered software systems with an “internationally owned software company,” defined as a company or subsidiary majority-owned by non-U.S. citizens. It also requires contractors seeking work on covered software systems to certify under penalty of perjury that they are not internationally owned, and it authorizes agencies to waive the restriction on a case-by-case basis when necessary for national security, with written notice to Congress within 30 days.
The bill defines a covered software system as one that stores, processes, or provides access to sensitive personal information for 500 or more federal employees or officers. Sensitive personal information includes Social Security numbers, medical or health records, personally identifiable information, and other data that could lead to identity theft, personal harm, or national security risk. The bill directs the Federal Acquisition Regulation to be updated within 180 days to implement these requirements and allows agencies to terminate contracts, seek other remedies, and pursue debarment or suspension if a contractor violates the prohibition or makes a false certification.
If enacted, the bill would add a new federal procurement restriction affecting software vendors with majority foreign ownership, particularly those handling federal employee data. It would require agencies to screen contractors through ownership certifications, potentially exclude some existing vendors from federal software contracts, and create new compliance, enforcement, and termination authorities. It would also require amendments to the Federal Acquisition Regulation, thereby changing federal contracting rules and procedures for agencies and affected software companies.
The available context shows no committee debate, recorded votes, or formal opposition statements, so there is no documented legislative sentiment beyond the bill’s introduction and referral to committee. The bill’s framing and title suggest a strong national-security and domestic-preference rationale, emphasizing protection of sensitive federal data and limiting foreign ownership in software contracting. Because no votes or transcripts are available, broader support or resistance cannot be assessed from the record provided.
The main points of contention likely center on the bill’s broad restriction on contracts with majority foreign-owned software companies and the practical effects on federal procurement, competition, and vendor availability. Supporters would likely emphasize data security, supply-chain risk, and national security, while critics may argue the definition of “internationally owned” is overinclusive, could reduce competition, and may affect companies with substantial U.S. operations. The waiver provision for national security may also be a focal point, since it gives agencies discretion but requires congressional reporting, balancing flexibility against oversight.