Connected Vehicle Security Act (S. 4429)

Summary

Stops the import, making, and sale of internet-connected cars, software, and hardware that come from countries considered to be U.S. adversaries.

What problem does this solve?

Cars with internet access can collect sensitive data and be controlled from far away, creating a security risk if managed by foreign rivals. This bill blocks these vehicles and parts from specific countries to prevent spying and protect national security.

What does this bill do?

Bans connected vehicles from certain countries

Prohibits the import, manufacture, or sale of connected vehicles originating from or designed in a covered country, which includes China, Russia, North Korea, and Iran, starting January 1, 2027.

Prohibits software and hardware from foreign adversaries

Bans the use of covered software from adversary nations in any connected vehicle starting in 2027, and bans connected vehicle hardware from those nations starting in 2030.

Establishes large fines for violations

Sets a civil penalty for each violation at an amount no less than $1,500,000 or five times the value of the transaction, whichever is greater. Each day a violation continues counts as a separate offense.

Creates a process for exceptions

Allows the Secretary of Commerce to authorize certain items if they are proven not to pose a national security risk. Congress has 60 days to pass a joint resolution to disapprove any authorization.

Requires a declaration of conformity

Directs the Secretary of Commerce to create a process where any person importing or selling a connected vehicle or its hardware must submit a declaration certifying it is not subject to the ban.

Allows for testing and evaluation

Exempts vehicles, software, and hardware from the ban if they are brought into the U.S. by an American-based company for the sole purpose of testing and evaluation.

Requires annual reports to Congress

Mandates the Secretary of Commerce to submit a yearly report to Congress detailing enforcement activities, the effectiveness of the bans, and any challenges or gaps in security.

Who does this affect?

Automotive manufacturers and suppliers
U.S. car buyers
Technology companies developing vehicle software and hardware

What is the real world impact?

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Protects national security

Prevents foreign adversaries from using connected vehicles to spy on Americans, collect sensitive data, or potentially disrupt critical infrastructure by remotely accessing and controlling vehicles.

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Strengthens the U.S. auto industry

Shields American car manufacturers from competition with state-supported companies in countries like China, aiming to protect U.S. jobs and technological leadership in the automotive sector.

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May limit consumer choice and increase costs

Banning vehicles and components from major manufacturing countries could reduce the variety of available cars and parts, potentially leading to higher prices for consumers as supply chains are reorganized.

When does this start?

The bill's rules go into effect on different dates, with major bans starting in 2027 and 2030.

Ban on connected vehicles and software

Beginning January 1, 2027, the import, manufacture, and sale of connected vehicles and covered software from adversary countries is prohibited.

Establishment of authorization and ruling procedures

By January 1, 2027, the Secretary of Commerce must create procedures for companies to request authorizations for otherwise banned items and to seek advisory opinions.

Publication of authorized items list

The Secretary of Commerce must publish the first list of items that have been authorized for exemption from the ban no later than January 1, 2027.

Ban on connected vehicle hardware

Starting January 1, 2030, the import, manufacture, and sale of connected vehicle hardware from adversary countries is prohibited.

Review of existing exclusions

Beginning January 1, 2030, the Secretary of Commerce will start a rulemaking process to decide if any prior exclusions or exceptions should be continued, changed, or ended.

Expiration of old authorizations

Any authorizations issued before January 1, 2030, will remain in effect until January 1, 2032, unless they are changed or revoked by the Secretary.