ICTS Supply Chain Security Act of 2026

The ICTS Supply Chain Security Act of 2026 establishes a new Assistant Secretary of Commerce and an Office within the Bureau of Industry and Security to oversee the security of information and communications technology supply chains. This new office is tasked with administering regulations that prohibit U.S. persons from acquiring or using specific hardware and software designed or manufactured by entities controlled by designated countries of concern, such as China, Russia, and Iran, if those items pose risks to national security or critical infrastructure. The law includes exceptions for open-source software and expressive materials like news and media, while also providing the Secretary of Commerce with the authority to issue licenses or impose mitigation measures for certain transactions. Penalties for violating these prohibitions include fines of up to $1.5 million or five times the transaction value, and potential imprisonment of up to 20 years for willful violations. The Act also mandates annual reporting to Congress and sets a five-year expiration date for the new prohibitions.