Connected Vehicle National Security Review Act
SB 2040, the Connected Vehicle National Security Review Act, would create a new Office of Information and Communications Technology and Services within the Department of Commerce’s Bureau of Industry and Security. The office would be led by an Executive Director and charged with reviewing certain “covered transactions” involving information and communications technology or items on the Commerce Control List when those transactions involve connected vehicles and may pose an “undue risk” to U.S. national security, critical infrastructure, or the digital economy.
The bill defines connected vehicles broadly and focuses on transactions involving technology or suppliers tied to jurisdictions or entities of concern, including China, Russia, Iran, and North Korea. It authorizes the Secretary of Commerce to investigate transactions, require information and testimony, impose mitigation measures such as cybersecurity requirements or component exclusions, or prohibit transactions that cannot be adequately mitigated. It also directs the Director of National Intelligence to provide risk assessments, establishes enforcement tools and penalties, and provides for judicial review in the D.C. Circuit.
The bill would amend the Export Control Reform Act of 2018 to add a new Part IV governing ICTS-related national security reviews, while also making conforming changes to definitions, reporting requirements, and Commerce Department staffing authorities. It would expand the Department of Commerce’s authority to scrutinize and potentially block certain connected-vehicle supply chain transactions involving foreign adversary-linked entities or jurisdictions, and would create new compliance, reporting, enforcement, and penalty provisions affecting manufacturers, suppliers, importers, and other parties in the connected vehicle ecosystem.
There is no recorded committee transcript or vote history in the provided material, so no direct floor or committee sentiment can be measured. Based on the bill text, the measure appears to be framed as a national security and supply-chain protection bill, with an emphasis on preventing foreign adversaries from gaining access to sensitive automotive and ICTS technologies. The overall posture is precautionary and security-focused rather than deregulatory or market-expanding.
The main points of contention likely center on the breadth of Commerce’s new review authority, the definition of “connected vehicle” and “covered transaction,” and the scope of countries and entities treated as jurisdictions or entities of concern. Potential concerns also include the bill’s strong enforcement powers, the ability to require disclosure of sensitive business information, the use of classified and ex parte judicial review, and the possibility that mitigation or prohibition decisions could affect trade, supply chains, and vehicle technology deployment. Supporters would likely emphasize national security, while critics may focus on overbreadth, compliance burdens, and impacts on industry innovation.