S1711-119

1. Short title This Act may be cited as the Safeguarding Transit Operations to Prohibit China Act or the STOP China Act.

2. Sense of Congress It is the sense of Congress that— the People’s Republic of China (referred to in this section as the PRC) uses a deliberately intricate web of industrial policies to distort market behavior to achieve dominance in global markets and increase the dependence of the United States on imports from the PRC; the adoption of PRC-developed technologies in the United States, including those used in certain vehicles, poses a significant risk to national security and threatens the long-term competitiveness of the United States; the PRC intentionally creates overcapacity and sells products at below-market prices to gain market share and undermine United States domestic supply chains; Congress must continue to confront the military-civil fusion strategy of the PRC and the intrusion of the PRC into the United States transportation market, as Congress has done in the National Defense Authorization Act for Fiscal Year 2020 (Public Law 116–92; 133 Stat. 1198) and the FAA Reauthorization Act of 2024 (Public Law 118–63; 138 Stat. 1025); United States taxpayer dollars should not be used to fund PRC-subsidized vehicle manufacturing or technology companies; and any entity accepting Federal funding must be prevented from procuring certain vehicles— from a PRC entity or an entity otherwise related legally or financially to a corporation based in the PRC; or that contain certain vehicle technologies identified as matters of national security concern.

3. Prohibitions relating to certain vehicles produced or provided by entities based in certain countries Section 5323(u) of title 49, United States Code, is amended— by striking paragraphs (1) and (2) and inserting the following: In this subsection: The term covered entity means an entity (including a corporation, partnership, association, organization, or other entity)— the principal place of business of which is in a covered nation; that is headquartered in, incorporated in, or otherwise organized under the laws of a covered nation; that, regardless of where the entity is organized or doing business, is owned or controlled by a covered nation or covered individual, including circumstances in which a covered individual possesses the power to determine, direct, or decide matters affecting the entity— through— the ownership of a majority of the total outstanding voting interest in the entity; board representation; proxy voting; a special share; contractual arrangements; formal or informal arrangements to act in concert; or other means; and regardless of whether that power is— direct; or exercised or unexercised; is owned or controlled by, a subsidiary of, an affiliate of, or in a joint venture with an entity described in clause (i), (ii), or (iii); is a manufacturer from which the procurement of rolling stock was ever prohibited under this subsections; or is an owner of, successor of, subsidiary of, affiliate of, or in a joint venture with a manufacturer described in clause (v). The term covered funding means any financial assistance made available under this chapter. The term covered individual means any individual, wherever located— whose activities are directly or supervised, directed, controlled, financed, or subsidized, in whole or in majority part, by a covered nation; who acts as an agent, representative, or employee of a covered nation or an individual described in clause (i); who acts in any other capacity at the order of, at the request of, or under the direction or control of a covered nation or an individual described in clause (i); or who— is a citizen or resident of a covered nation or a country controlled by a covered nation; and is not a citizen or permanent resident of the United States. The term covered nation has the meaning given the term in section 4872(d) of title 10. The term covered vehicle means rolling stock that— is produced or provided by a covered entity included on the list developed under paragraph (2)(B); or incorporates an electric power train produced or provided by a covered entity included on the list developed under paragraph (2)(B). The term electric power train has the meaning given the term in section 571.305 of title 49, Code of Federal Regulations (as in effect on the date of enactment of the STOP China Act). Subject to subparagraph (C), on and after the date of enactment of the STOP China Act, the Secretary may not award or obligate covered funding— for a contract or subcontract for the procurement of a covered vehicle; or for the construction, installation, or maintenance of infrastructure to fuel or charge a covered vehicle that is a bus, if the applicable covered vehicle is procured under a contract or subcontract executed on or after the date of enactment of the STOP China Act. Not later than 30 days after the date of enactment of the STOP China Act, the United States Trade Representative, in consultation with the Attorney General and the Secretary, shall make publicly available, including on a publicly accessible website, a list of covered entities that produce or provide— rolling stock to which the prohibition under subparagraph (A) applies; or electric power trains the incorporation of which into rolling stock would render the rolling stock subject to the prohibition under subparagraph (A). The United States Trade Representative shall update the list required under clause (i)— based on information provided to the United States Trade Representative by the Attorney General and the Secretary; and not less frequently than— once every 90 days during the 180-day period beginning on the date of initial publication of the list under that clause; and annually thereafter. Notwithstanding subparagraph (A), the Secretary may procure a covered vehicle or construct, install, or maintain infrastructure to fuel or charge a covered vehicle for purposes of— the inspection or investigation of a motor vehicle or equipment; or motor vehicle safety research, development, or testing. in paragraph (4), by striking paragraph (1) each place that term appears and inserting paragraph (2); in paragraph (5)— in subparagraph (A)— by striking This subsection, including the and inserting The; by striking the comma after (4); by inserting that does not utilize covered funds after subcontract; by striking rail rolling stock manufacturer described in paragraph (1) and inserting covered entity; by striking the manufacturer and inserting the covered entity; and by striking date of enactment of this subsection and inserting date of enactment of the STOP China Act; by striking subparagraph (B) and inserting the following: Notwithstanding paragraph (2), covered funds may be obligated for a contract or subcontract that was eligible for assistance under this chapter under the provisions of this subsection prior to the date of enactment of the STOP China Act until the delivery of rolling stock is complete under such contract. by striking subparagraph (C); and by adding at the end the following: If any provision of this subsection, or the application of this subsection to any person or circumstance, is held to be unconstitutional or otherwise invalid, the remainder of this subsection, and the application of the provision to any other person or circumstance, shall not be affected. (1) Definitions In this subsection: (A) Covered entity The term covered entity means an entity (including a corporation, partnership, association, organization, or other entity)— (i) the principal place of business of which is in a covered nation; (ii) that is headquartered in, incorporated in, or otherwise organized under the laws of a covered nation; (iii) that, regardless of where the entity is organized or doing business, is owned or controlled by a covered nation or covered individual, including circumstances in which a covered individual possesses the power to determine, direct, or decide matters affecting the entity— (I) through— (aa) the ownership of a majority of the total outstanding voting interest in the entity; (bb) board representation; (cc) proxy voting; (dd) a special share; (ee) contractual arrangements; (ff) formal or informal arrangements to act in concert; or (gg) other means; and (II) regardless of whether that power is— (aa) direct; or (bb) exercised or unexercised; (iv) is owned or controlled by, a subsidiary of, an affiliate of, or in a joint venture with an entity described in clause (i), (ii), or (iii); (v) is a manufacturer from which the procurement of rolling stock was ever prohibited under this subsections; or (vi) is an owner of, successor of, subsidiary of, affiliate of, or in a joint venture with a manufacturer described in clause (v). (B) Covered funding The term covered funding means any financial assistance made available under this chapter. (C) Covered individual The term covered individual means any individual, wherever located— (i) whose activities are directly or supervised, directed, controlled, financed, or subsidized, in whole or in majority part, by a covered nation; (ii) who acts as an agent, representative, or employee of a covered nation or an individual described in clause (i); (iii) who acts in any other capacity at the order of, at the request of, or under the direction or control of a covered nation or an individual described in clause (i); or (iv) who— (I) is a citizen or resident of a covered nation or a country controlled by a covered nation; and (II) is not a citizen or permanent resident of the United States. (D) Covered nation The term covered nation has the meaning given the term in section 4872(d) of title 10. (E) Covered vehicle The term covered vehicle means rolling stock that— (i) is produced or provided by a covered entity included on the list developed under paragraph (2)(B); or (ii) incorporates an electric power train produced or provided by a covered entity included on the list developed under paragraph (2)(B). (F) Electric power train The term electric power train has the meaning given the term in section 571.305 of title 49, Code of Federal Regulations (as in effect on the date of enactment of the STOP China Act). (2) Prohibition (A) In general Subject to subparagraph (C), on and after the date of enactment of the STOP China Act, the Secretary may not award or obligate covered funding— (i) for a contract or subcontract for the procurement of a covered vehicle; or (ii) for the construction, installation, or maintenance of infrastructure to fuel or charge a covered vehicle that is a bus, if the applicable covered vehicle is procured under a contract or subcontract executed on or after the date of enactment of the STOP China Act. (B) List of covered entities (i) In general Not later than 30 days after the date of enactment of the STOP China Act, the United States Trade Representative, in consultation with the Attorney General and the Secretary, shall make publicly available, including on a publicly accessible website, a list of covered entities that produce or provide— (I) rolling stock to which the prohibition under subparagraph (A) applies; or (II) electric power trains the incorporation of which into rolling stock would render the rolling stock subject to the prohibition under subparagraph (A). (ii) Updates The United States Trade Representative shall update the list required under clause (i)— (I) based on information provided to the United States Trade Representative by the Attorney General and the Secretary; and (II) not less frequently than— (aa) once every 90 days during the 180-day period beginning on the date of initial publication of the list under that clause; and (bb) annually thereafter. (C) Exception Notwithstanding subparagraph (A), the Secretary may procure a covered vehicle or construct, install, or maintain infrastructure to fuel or charge a covered vehicle for purposes of— (i) the inspection or investigation of a motor vehicle or equipment; or (ii) motor vehicle safety research, development, or testing. . (B) Contract completion Notwithstanding paragraph (2), covered funds may be obligated for a contract or subcontract that was eligible for assistance under this chapter under the provisions of this subsection prior to the date of enactment of the STOP China Act until the delivery of rolling stock is complete under such contract. ; and (6) Severability If any provision of this subsection, or the application of this subsection to any person or circumstance, is held to be unconstitutional or otherwise invalid, the remainder of this subsection, and the application of the provision to any other person or circumstance, shall not be affected. .

4. Prohibitions relating to additional vehicles produced or provided by entities based in certain countries In this section: The terms covered entity; covered individual, covered nation, covered vehicle, and electric power train have the meanings given those terms in section 5323(u)(1) of title 49, United States Code. The term covered funding means any appropriations made available to the Department, other than funds made available under chapter 53 of title 49, United States Code. The term Department means the Department of Transportation. The term Secretary means the Secretary of Transportation. Subject to paragraph (3), the Department may not award, obligate, allocate, or expend covered funding— for the procurement of a covered vehicle by the Department or any other agency or person; or for the construction, installation, or maintenance of infrastructure to fuel or charge a covered vehicle that is a bus, if the applicable covered vehicle is procured under a contract or subcontract executed on or after the date of enactment of this Act. Not later than 30 days after the date of enactment of this Act, the United States Trade Representative, in consultation with the Attorney General and the Secretary, shall make publicly available, including on a publicly accessible website, a list of covered entities that produce or provide— covered vehicles to which the prohibition under paragraph (1) applies; or electric power trains the incorporation of which into a covered vehicle would render the covered vehicle subject to the prohibition under that paragraph. The United States Trade Representative shall update the list required under subparagraph (A)— based on information provided to the United States Trade Representative by the Attorney General and the Secretary; and not less frequently than— once every 90 days during the 180-day period beginning on the date of initial publication of the list under that subparagraph; and annually thereafter. Notwithstanding paragraph (1), the Department may procure a covered vehicle or construct, install, or maintain infrastructure to fuel or charge a covered vehicle for purposes of— the inspection or investigation of a motor vehicle or equipment; or motor vehicle safety research, development, or testing. If any provision of this section, or the application of this section to any person or circumstance, is held to be unconstitutional or otherwise invalid, the remainder of this section, and the application of the provision to any other person or circumstance, shall not be affected.