Bill · S. 3640· Senate(119-S-3640)
Divesting from Communist China’s Military Act of 2026
- Introduced
- 1/14/2026
- Last activity
- 1/14/2026 — Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Sponsored by
- Rick Scott
- Cosponsors
- - 4 - 0
- Introduced
- In Committee
What this bill would do
This bill, known as the "Divesting from Communist China's Military Act of 2026," targets entities identified as Chinese military companies. It requires the Secretary of the Treasury to add these entities to the Non-SDN Chinese Military-Industrial Complex Companies List (NS-CMIC List) after the Secretary of Defense identifies them. Once included on this list, prohibitions from Executive Order 13959 will apply to the entity. The act aims to harmonize enforcement across different sanctions regimes to ensure consistent treatment of national security risks. It also provides a specific timeframe for United States persons to sell their securities.
Yes· 3 of 4
Does this better protect the country from computer attacks?+2
The bill targets entities that facilitate the development of Chinese surveillance and military technology.
Does this strengthen ties with allied countries?+1
By coordinating sanctions, the bill strengthens the unified security stance of the United States.
Does this put more rules on large technology companies?+1
The bill increases oversight on entities that provide surveillance technology and military-civil fusion contributions.
The opposite
Would people with substantial wealth be better off under this?-2
The bill imposes restrictions on certain securities that high-net-worth investors may hold.
Is this likely to grow the economy?-1
The bill imposes investment restrictions that may limit capital flows and market activity.
Who it would affect, and how
Potential Positive Impacts for People
-
Enhanced National Security through Consistent Sanctions: By harmonizing enforcement approaches, the government can ensure consistent treatment of entities that pose national security risks, which enhances the effectiveness of United States sanctions and investment restrictions (Section 2, paragraph 7).
-
Opportunity for Divestment: United States persons are granted a one-year period following an entity's inclusion on the NS-CMIC List to purchase or sell publicly traded securities for the purpose of divesting their holdings (Section 3, subsection b, paragraph 2).
Potential Negative Impacts for People
- Restrictions on Investment: Following the inclusion of an entity on the NS-CMIC List, the prohibitions set forth in Executive Order 13959 will apply to that entity, which limits certain financial activities (Section 3, subsection b, paragraph 1).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- National Security And Foreign Policy
- Improves Cybersecurity Defense+2Improves International Alliances+1
- Demographic And Interest Groups
- Good For High Net Worth Individuals-2
- Education And Technology
- Increases Big Tech Regulation+1
- Economy And Finance
- Improves Consumer Protection+1Improves Economic Growth-1
- 5/14/2026
- 1 Cosponsor added.
- 1/14/2026
- Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 3 Cosponsors added.
- Introduced in Senate
One bill Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.
Jim BanksRepublican · Indiana
Ted CruzRepublican · Texas
David McCormickRepublican · Pennsylvania
Ashley MoodyRepublican · Florida