To amend section 844 of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 to change the applicability of the amendments made by such section, and for other purposes.
This bill delays a planned ban on the U.S. military buying sensitive materials—such as specialty magnets and tungsten—from adversarial nations like China, Russia, North Korea, and Iran. The Department of Defense can now continue sourcing these supplies from these countries until January 2032. The ban will only kick in sooner if the military certifies that there are enough reliable, commercially viable alternative suppliers located outside of those adversarial nations.
- Referred to the House Committee on Armed Services.
- Introduced in House
- Introduced in House
The provisions, in plain language.
Delays defense restrictions on purchasing certain materials (such as magnets and metals) from countries like China, Russia, North Korea, and Iran, making them apply only to contracts signed on or after January 1, 2032, or 180 days after the Department of Defense certifies there are enough viable alternative suppliers, whichever is earlier.
Requires the Secretary of Defense to update Department of Defense purchasing regulations within 120 days of enactment to align with this new timeline.
Who it helps · who it burdens.
Who it helps
- Department of DefenseGains operational flexibility by delaying restrictions on purchasing covered materials (such as magnets and metals) from covered nations, allowing continued procurement until 2032 or until alternative suppliers are certified (Sec. 1(a)(1)).
- Defense contractorsAllowed to continue entering into Department of Defense contracts that utilize covered materials (like magnets and metals) sourced from covered nations without immediate restriction, delaying compliance costs and supply chain adjustments (Sec. 1(a)(1)).
- Material suppliers in covered nationsCan continue selling covered materials for use in Department of Defense contracts for a longer period due to the delay of purchasing restrictions (Sec. 1(a)(1)).
Who it burdens
- Secretary of DefenseRequired to revise the Department of Defense Supplement to the Federal Acquisition Regulation within 120 days to implement the delayed restriction timeline (Sec. 1(b)).
Who opposes it
- Alternative suppliers of defense materials outside covered nationsLoses immediate market protection and procurement advantages, as the restriction on purchasing materials from their competitors in covered nations is delayed until 2032 or until a sufficient number of alternative suppliers are certified (Sec. 1(a)(1)(B)).