Sec. 907. Pilot program on protecting access to critical assets
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The Secretary of Defense shall establish a pilot program within the Office of the Under Secretary of Defense for Acquisition and Sustainment under which the Under Secretary will conduct and coordinate assessments, support industrial base decision-making, and provide mitigation measures to counter adversarial capital flows into industries or businesses of interest to the Department of Defense intended to undermine or deny— the access of the United States to key capabilities; or the ability of the United States to place such capabilities in physical locations necessary for national security functions.
Under the pilot program required by subsection (a), the Under Secretary may perform the following tasks: Conduct coordinated and integrated analysis of adversarial capital flows into industries or businesses of interest to the Department of Defense. Support coordination and outreach with technology scouting and acquisition elements of the Department to support the investment decision-making of those elements and consideration of how to counteract entities employing adversarial capital flows against industries or businesses described in subparagraph (A), including the employment of relevant authorities vested in other components of the Department and the Federal Government.
Identify, accelerate, and sustain the establishment, research, development, construction, procurement, leasing, consolidation, alteration, improvement, modernization, and repair of tangible and intangible assets vital to the national security of the United States. Protect tangible and intangible assets vital to the national security of the United States from theft, acquisition, and transfer by adversaries or strategic competitors of the United States. Provide capital assistance to entities engaged in investments that facilitate the efforts of the Under Secretary under subparagraphs
(C)and
(D)utilizing existing authorities available to the Department, such as the authority provided under section 834. Experiment, prototype, test, or validate Government-developed or commercially developed analytical tools, processes, and tradecraft to improve the due diligence and investment analysis processes for the Department. The Under Secretary may perform the tasks described in paragraph
(1)using the authorities provided by section 834. In establishing the pilot program required by subsection (a), the Secretary shall coordinate the activities being carried out under the pilot program with the following entities: The Air Force Office of Concepts, Development, and Management. The Air Force Office of Commercial and Economic Analysis. The Special Operations Command. The Defense Innovation Unit. The Office of Strategic Capital established under section 148 of title 10, United States Code, as added by section 901. Such other entities as the Secretary considers appropriate. The Secretary of Defense shall prescribe such regulations as are necessary to carry out this section. The Secretary may not carry out activities or exercise authorities under this section until the date that is 30 days after the date on which the Secretary submits to the congressional defense committees the regulations required by subsection (d). Not later than 90 days after the date of the enactment of this Act, the Under Secretary shall provide a briefing to the congressional defense committees that details implementation of the pilot program required by subsection (a). The pilot program required by subsection
(a)shall terminate on September 30, 2028. In this section: The term adversarial capital flow means an investment by— the government of a country that is an adversary of the United States; or an entity organized under the laws of, or otherwise subject to the jurisdiction of, such a country. The term capital assistance has the meaning given that term in section 834.