H.R. 3961 — To prohibit the Secretary of Defense from entering into software source code contracts with entities with certain relationships with China, and for other purposes.

This section prohibits the Secretary of Defense from entering into, renewing, or extending contracts for the provision of software source code with persons that (1) own, operate, substantially fund, or have a material interest in an artificial intelligence research or development facility in a covered country (i.e., China or certain other foreign adversaries, as defined in section 812 of the National Defense Authorization Act for Fiscal Year 2024); (2) have allowed a covered country access to such software or source code that could enable reverse engineering; or (3) operate a data center in a covered country with respect to such software source code, including one operated by an affiliate or on behalf of the entity. The Secretary may waive the prohibition if determined to be in the national security interests of the United States. The prohibition applies to contracts entered into, renewed, or extended within three years after enactment.