Connected Vehicle Security Act of 2026

Protection from Foreign Surveillance and Cyber Threats: Section 2 and Section 4 outline prohibitions against connected vehicles, software, and hardware from covered countries to reduce risks like surveillance, espionage, cyber intrusion, and critical infrastructure disruption. This protects everyday Americans from having their sensitive geolocation, operational, and personal data monitored or remotely manipulated by foreign adversaries.

Safe Harbor for Fixing Mistakes: Section 4(f) establishes a one-year safe harbor period that allows individuals or companies to correct a violation without facing civil penalties if they promptly disclose the issue, cooperate with the Bureau of Industry and Security, and complete the required remedial steps without willful misconduct or fraud. This protects well-meaning people and businesses from harsh punishments when minor mistakes are fixed quickly.

Consumer Protection and Safety Reports: Section 8 directs the Secretary of Transportation to submit a report on how to better inform passenger car buyers if their original air bags were replaced with potentially defective Chinese air bags or air bag components. This helps look out for the safety of drivers and passengers by addressing hidden physical safety risks in used vehicles.

Hefty Financial Penalties: Section 4(g) requires the Secretary to assess a civil penalty for each transaction violating the prohibitions that is at least $1,500,000 or five times the value of the transaction, whichever is greater. Furthermore, each day a continuing violation occurs is treated as a separate violation, which could impose massive financial burdens on businesses struggling with compliance.

Supply Chain and Market Disruptions: Section 4 and Section 7 identify dependencies on covered countries for critical automotive components, electric vehicle batteries, and sensing hardware like LiDAR and radar. Restrictions on these parts could lead to supply chain bottlenecks, reduced vehicle choices, and higher costs for consumers purchasing connected vehicles or replacement hardware.