Connected Vehicle Security Act of 2026
Introduced April 29, 2026 · Last action April 29, 2026
Plain English Summary
This bill prohibits the importation, manufacture, sale, and resale of connected vehicles (cars with wireless communications) and related software and hardware that originate from China, Russia, North Korea, or Iran, or are controlled by entities from these countries. The ban on vehicles and software takes effect January 1, 2027, while the ban on hardware components takes effect January 1, 2030. The Secretary of Commerce can issue authorizations for specific items if they pose no unacceptable security risk, subject to congressional disapproval.
Who benefits
Domestic U.S. automakers (Ford, General Motors, Stellantis) and their suppliers gain market protection by blocking Chinese and other covered-country automotive imports and competition. U.S.-based automotive component manufacturers (semiconductor suppliers, telematics suppliers, battery management system makers) benefit from restrictions on foreign hardware imports. U.S. technology companies developing autonomous driving and connected vehicle software gain protection from competition. Domestic workers in automotive manufacturing and supply chains benefit from reduced foreign competition.
Who pays / loses
Consumers purchasing vehicles face reduced choice and potentially higher prices as competition from cheaper Chinese electric vehicles and connected cars is eliminated. Importers and distributors of Chinese vehicles and components (including Tesla's China-manufactured vehicles destined for U.S. sale, BYD if it attempted U.S. entry, and other Chinese automakers) lose access to the U.S. market. Chinese automotive companies (BYD, Li Auto, Nio, XPeng, Geely/Volvo) lose export opportunities to the U.S. market. Companies with joint ventures, subsidiaries, or ownership structures in covered countries (including some U.S. automakers with manufacturing or R&D in China) face restrictions on their own vehicles and components. Manufacturers requiring covered-country hardware or software must find alternative suppliers, increasing costs and development timelines.
Funding & Lobbying Interests
The bill reflects financial interests of the domestic U.S. automotive industry, including the Big Three automakers (General Motors, Ford, Stellantis), the Alliance for Automotive Innovation (industry trade group), and U.S.-based automotive component suppliers and semiconductor manufacturers. These groups lobby for trade restrictions protecting domestic market share. No specific donor data is provided in the bill text, but the sponsors (Moreno, a Republican from Ohio with a manufacturing base, and Slotkin, a Democrat from Michigan, the center of U.S. auto manufacturing) represent constituencies directly dependent on automotive manufacturing jobs.
Political Impact
Affected Groups
Chinese automakers and suppliers attempting to enter or expand in the U.S. market face a complete ban. U.S. consumers—particularly price-sensitive and younger buyers attracted to cheaper Chinese electric vehicles—lose access to lower-cost vehicle options; estimates suggest Chinese EVs could undercut domestic prices by 20-40% based on manufacturing cost advantages. Workers in domestic automotive manufacturing and supply chains (approximately 1 million direct manufacturing jobs plus 2-3 million supply chain jobs in the U.S.) gain protection from import competition. Rural and low-income consumers reliant on affordable vehicle imports face higher new car prices. Companies with manufacturing or development presence in China (including some U.S. automakers and suppliers) face operational disruption and supply chain reorganization costs.
Political Subtext
Proponents frame this as essential national security legislation protecting critical infrastructure from surveillance and cyberattacks by authoritarian regimes, arguing Chinese vehicles pose espionage risks through data collection and remote vehicle control. They cite the scale of Chinese vehicle exports (8 million annually) and the national emergency declared in Executive Order 13873 on information technology supply chains. Proponents contend the measure protects U.S. economic competitiveness and industrial capacity. Critics argue the bill is protectionist trade policy disguised as security policy; they note that existing cybersecurity regulations, FCC oversight, and the earlier BIS rule already restrict connected vehicle imports from covered countries, making this legislation duplicative. Critics point out that security risks from hardware and software can be mitigated through standards and testing rather than blanket bans, and that the definition of 'covered software' and 'vehicle connectivity system hardware' is so broad it could capture routine components. They also note that many U.S. automakers source components globally and have manufacturing in China, creating potential compliance burdens. The non-partisan evidence shows: (1) Chinese electric vehicle makers (BYD) have superior battery technology and cost structures that threaten U.S. and European automakers' EV market share (source: BloombergNEF, 2024); (2) connected vehicle cybersecurity risks are real and documented, but existing regulatory frameworks address them (source: NHTSA, CISA guidance); (3) blanket import bans have broader economic costs beyond the protected industry, including reduced consumer choice and higher vehicle prices (analogous to historical auto import quotas and tariffs).
Real-World Stakes
Sponsor
Sponsor information not available.
Vote Record
No recorded votes.
Campaign Finance — Primary Sponsor
No campaign finance data available yet.
501(c)(4) disclosure: Contributions from 501(c)(4) "dark money" organizations are not required to be publicly disclosed and are not reflected in the figures above. Data sourced from FEC public disclosure filings.
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