GAIN AI Act of 2025

Section 2, adding new section 1758A(b)(1) to the Export Control Reform Act of 2018, requires license applicants seeking to export advanced circuits to countries of concern to certify that they provided a right of first refusal to United States persons. This provision is positive because it ensures that Americans and domestic entities get the first chance to buy critical technology before it is sent abroad to concerning nations.

Section 2, adding new section 1758A(c)(1) of the Export Control Reform Act of 2018, exempts trusted United States persons from certain export license requirements if the advanced circuit is destined for a non-concerning country and remains under the ownership and control of a trusted United States person. This could benefit domestic companies by cutting through red tape and regulatory burdens when operating abroad in safe locations.

Section 2, adding new section 1758A(b)(2) to the Export Control Reform Act of 2018, mandates that the government must deny any license application that fails to include the required certification of priority for United States customers. While designed to enforce the rule, this could create heavy bureaucratic hurdles and delays for businesses trying to legally navigate international markets.

Section 2, adding new section 1758A(c)(2)(A) of the Export Control Reform Act of 2018, requires the government to establish strict standards for a United States person to be designated as a trusted United States person, including physical security, cybersecurity measures, and annual audits. This might impose burdensome compliance costs and strict operational rules on domestic companies seeking this status.