Chairman John Moolenaar (R-MI) of the Select Committee on China announced that several committee-backed measures have been included in the National Defense Authorization Act (NDAA) for 2026, which passed the House. The legislation features new restrictions on outbound investment and incorporates the BIOSECURE Act.
Moolenaar stated, “The Select Committee has tirelessly worked across the aisle to secure the major victories in today’s legislation. I am thankful for Speaker Johnson, Majority Leader Scalise, Congressman Barr, Senator Cornyn, Chairman Mast, Chairman Comer, Senator Hagerty, and all those who have never wavered in carrying outbound and BIOSECURE over the finish line.” He added, “The outbound investment restrictions in this legislation align with President Trump’s America First Investment Policy and will prevent American dollars from supporting Chinese companies that are developing China’s capabilities in artificial intelligence, quantum computing, semiconductors, and other critical technologies. As we documented in our April 2024 report, American venture capitalists have provided billions of dollars to Chinese companies that work with PLA to develop the technologies of the future. They must stop funding our adversary.”
On the inclusion of biotechnology provisions, Moolenaar said: “BIOSECURE is also a major win for the Select Committee and our country. It will protect the genetic data of Americans while securing our pharmaceutical supply chains. China has shown it will weaponize any and all sources of dependency against us, and we cannot let biotechnology become the next rare earth-style loaded gun aimed at the health of all Americans.”
The NDAA includes several measures supported by Moolenaar and Republican members of the Select Committee. These include codifying restrictions on U.S. investments in advanced Chinese technology sectors such as artificial intelligence and semiconductors; ensuring taxpayer funds do not support certain Chinese biotechnology firms; and establishing new protections for advanced U.S. AI systems against foreign espionage.
In addition to technology-related provisions, the bill expands security cooperation with Taiwan by authorizing up to $1 billion in fiscal year 2026 for defense acquisitions and creating a joint partnership focused on uncrewed systems. It also calls for mobilization exercises modeled after historical precedents to test readiness for high-intensity conflict in the Indo-Pacific region.
Further elements address defense industrial base resilience by requiring assessments of infrastructure dependent on materials from China and strengthening prohibitions on procuring advanced batteries from specified foreign entities. The act establishes initiatives such as a Civil Reserve Manufacturing Network to boost auxiliary defense production capacity during emergencies.
Other directives include plans to transition certain manufacturing processes to enable rapid scaling when needed; creation of a Pentagon working group focused on workforce shortages related to advanced manufacturing; formation of a collaborative forum among government, industry, and academia; expansion of authorities to accelerate qualification processes for new materials; and reporting requirements regarding surge capacity within the defense industrial base.
