H.R. 1795 — NETWORKS Act

This section states the sense of Congress that (1) secure telecommunications networks domestically and in partner and allied nations are important to U.S. national security; (2) risks from untrusted telecommunications vendors—particularly those based in the People's Republic of China—to communications, data security, and network viability outweigh any potential benefits; and (3) the U.S. government should use economic statecraft to promote secure telecommunications networks.

This section directs the President, on and after 90 days after enactment, to block and prohibit all significant transactions in property and interests in property of foreign persons determined to (1) produce fifth- or future-generation telecommunications technology (i.e., technology conforming to industry standards for 5G or beyond) and (2) conduct related business contrary to U.S. national security interests, using authorities under the International Emergency Economic Powers Act (IEEPA, 50 U.S.C. 1701 et seq.). The section provides exceptions for U.S. intelligence activities and humanitarian assistance transactions (i.e., agricultural commodities, food, medicine, medical devices, or related financial or transport activities); authorizes the President to waive sanctions for renewable 90-day periods if vital to national security (with a report to Congress); and applies IEEPA implementation authorities and civil/criminal penalties for violations. (As background, "untrusted telecommunications vendor" is defined by reference to "covered communications equipment or service" under the Secure and Trusted Communications Networks Act of 2019 (47 U.S.C. 1608), which identifies equipment posing national security risks from certain foreign vendors.)