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Code · BILL · 119th Congress · S. 1071 (EAH) — 119 S1071 EAH: National Defense Authorization Act for Fiscal Year 2026 · Sec. 1086

Sec. 1086. Framework for reforming technology transfer and foreign disclosure policies

799 words·~4 min read·/bill/119/s/1071/eah/section-1086

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Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall produce a framework to revise technology transfer and foreign disclosure policies and processes of the military departments and the technology transfer and foreign disclosure committees. The framework produced pursuant to subsection
(a)shall include the following: Guidelines for balancing the protection of technology and classified information with the requirement to share technology and classified defense information. A process to gather, consider, and, as appropriate, incorporate input from Federal agencies and industry stakeholders, in accordance with subsection (d), to inform revisions to the technology transfer and foreign disclosure policies and processes of the Department of Defense. Recommendations for updating the National Disclosure Policy to accommodate the use of emerging and advanced defense such as artificial intelligence, directed energy, microwave systems, counter-unmanned aerial systems, missile defense, cybersecurity, quantum technologies, hypersonics, autonomous systems, and such other technologies as the Secretary determines appropriate. Mechanisms to enable the military departments and the Defense Technology Security Administration to streamline the approval process for technology transfers. Mechanisms to enhance transparency to ensure the technology transfer policies of the Department of Defense and each of the military departments specifically are comparable with respect to capability and country release tiers for emerging and advanced defense items. A plan to consolidate technology security and foreign disclosure approvals in accordance with Executive Order 14268, titled Reforming Foreign Defense Sales to Improve Speed and Accountability and dated April 9, 2025. An updated Department of Defense Directive 5111.21 to address roles, responsibilities and members of the Arms Transfer and Technology Release Senior Steering Group of the Department of Defense. Metrics to evaluate the effectiveness of the technology transfer policies of the military departments and the National Disclosure Policy to enable the transfer of defense items to allies and partners of the United States while ensuring protection of United States technology. An annual requirement to conduct an audit of license applications that were denied during the prior year on the basis of technology transfer policies of the military departments or the Defense Technology Security Administration. A description of the charter of each technology security and foreign disclosure committee, its participants, and its relationship to other technology security and foreign disclosure committees. Not later than one year after the date of the submission of the framework under subsection (a), and not less frequently than annually thereafter, the Secretary of Defense shall direct the Secretary of each of the military departments and the heads of the technology security and foreign disclosure committees to revise the technology transfer policy of that department and the Under Secretary of Defense for Policy to revise the National Disclosure Policy, based on the elements of the framework under subsection (b). At least once every six months, the Secretaries of the military departments, the Under Secretary of Defense for Acquisition and Sustainment, and the Under Secretary of Defense for Policy shall consult with such representatives from the defense industry as the Secretaries and Under Secretary consider appropriate, including representatives from nontraditional defense contractors (as such term is defined by section 3014 of title 10, United States Code) in the course of carrying out subsections (a), (b), and (c). Not later than 180 days after the date of the enactment of this Act, the Secretary of Defense shall submit to the congressional defense committees a report containing the framework produced under subsection (a). Not later than one year after the date of the submission of the framework required under subsection (a), and not less frequently than annually thereafter, the Secretary of Defense shall submit to the congressional defense committees a report that includes the following: A description of any actions taken to improve the technology transfer policies of the military departments and the technology security and foreign disclosure committees in accordance with the implementation requirements under subsection (c). A description of actions taken to implement or incorporate industry recommendation into the technology transfer policies of the military departments and the National Disclosure Policy. A summary of any feedback from industry stakeholders with respect to current applications of the technology transfer policies of the military departments and the National Disclosure Policy, and a description of any actions taken to address such feedback. The results of an audit of license applications that were denied during the preceding 12-month period on the basis of technology transfer policies of the military departments or the technology security and foreign disclosure committees, including information and data that link such denials to the policies in effect at the time of denial. Any recommendations of the Secretary for legislation necessary to improve technology release and foreign disclosure policies of the Department of Defense. Each report submitted under this subsection shall be submitted in unclassified form, but may include a classified annex.
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Sec. 1086
Framework for reforming technology transfer and foreign disclosure policies
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