AI OVERWATCH Act

National Security Protections: The bill requires a certification that any license approved will ensure the end-user does not support the military, intelligence, surveillance, or cyber-enabled capabilities of a country of concern (Section 2, subsection (c)(1)(D)).

Protection of U.S. Industrial Advantage: The Under Secretary must certify that approving a license will not negatively impact the United States' advantage in total nationally-installed processing power capacity (Section 2, subsection (c)(1)(F)).

Securing Domestic Supply Chains: The bill requires a certification that approving licenses will not hurt the availability of covered integrated circuits for United States persons, ensuring subcomponents like high-bandwidth memory remain available (Section s2, subsection (c)(1)(E)).

Economic Support for Domestic Manufacturing: The designation of a "trusted United States person" includes a preference for sourcing components from facilities that support the revival of semiconductor manufacturing within the United States (Section 2, subsection (d)(2)(B)(ii)).

Immediate Halt on Exports: The bill mandates a temporary prohibition where the Under Secretary must deny all licenses for the export of covered integrated circuits to countries of concern until a specific national security strategy is submitted to Congress (Section 2, subsection (f)).

Termination of Existing Licenses: Any license previously issued or approved for the export, reexport, or in-country transfer of a covered integrated circuit to an entity in a country of concern is terminated upon the enactment of this section (Section 2, subsection (e)).

Strict Ownership Restrictions: To be considered a "trusted United States person," an entity cannot have more than 10 percent of its ultimate beneficial ownership held by an entity that primarily resides or conducts business in a country of concern (Section 2, subsection (d)(2)(B)(iii)).