Senate Commerce Committee Passage of the Connected Vehicle Security Act

The Senate Committee on Commerce, Science, and Transportation has passed the Connected Vehicle Security Act of 2026. The bipartisan legislation would prohibit the importation, manufacture, and sale of connected vehicles, software, and hardware linked to China. Chairman John Moolenaar (R-MI) of the Select Committee on China and Congresswoman Debbie Dingell (D-MI) led the bill’s introduction in the House, and the Senate version is led by Senator Bernie Moreno (R-OH).

 “The Connected Vehicle Security Act is crucial to protect American jobs, national security, and the future of American manufacturing. Chinese automakers use slave labor, massive government subsidies, and unfair trade practices, and their vehicles are a national security risk with equipment that transmits data to China. These companies have already decimated European competitors in their home markets, causing layoffs and production cuts, and we will not let them do the same thing in the United States. Thank you to our colleagues on the Senate Commerce Committee for rejecting weak amendments and passing a strong bill that keeps China out of our market. This will protect American workers, manufacturers, supply chains, and our national security,” said Moolenaar and Dingell.

What the Bill Does

• Prohibits the importation, manufacture, sale, or introduction into U.S. commerce of connected vehicles originating from or controlled by a covered foreign adversary country.
• Prohibits connected vehicle software and hardware linked to covered foreign adversaries.
• Covers China, Russia, North Korea, and Iran.
• Allows for phased-in adoption of prohibitions so auto companies can adjust their manufacturing and supply chains with minimal disruption.
• Directs the Secretary of Commerce to establish a declaration of conformity process, authorization and waiver procedures, and a binding ruling and advisory opinion mechanism for industry compliance.

Background

Moolenaar and Congresswoman Debbie Dingell introduced the Connected Vehicle Security Act in the House on May 11.

The Connected Vehicle Security Act builds on the work of two administrations. In 2019, President Trump signed an executive order declaring a national emergency with respect to foreign threats to America's information and communications technology supply chain, establishing the legal authority for the federal government to act. The Biden Administration used that authority to finalize regulations in January 2025 prohibiting connected vehicle software and hardware linked to China and Russia. The Connected Vehicle Security Act expands those protections in statute.

Moolenaar and Moreno recently discussed the Connected Vehicle Security Act at a public event hosted by the American Enterprise Institute in Washington, D.C. Read the press release for the public discussion here.

Supporters call Chinese connected vehicles potential surveillance platforms on wheels. Critics warn that an overly broad law could disrupt global automakers, supply chains and new-vehicle prices.

The Senate Commerce Committee’s passage of the Connected Vehicle Security Act does not immediately ban any vehicle. It moves the legislation closer to consideration by the full Senate. If enacted, the measure could prohibit Chinese-manufactured connected vehicles and restrict vehicle hardware, software and data systems associated with China and other foreign adversaries. Depending on the final ownership rules, it could also affect some non-Chinese automakers with substantial Chinese investors.

WASHINGTON — July 23, 2026: The Senate Committee on Commerce, Science and Transportation has advanced the bipartisan Connected Vehicle Security Act of 2026, moving Congress closer to establishing permanent restrictions on Chinese vehicles and foreign-adversary-connected automotive technology in the United States.

The committee approved the legislation by voice vote on July 22. The proposal was introduced by Senators Bernie Moreno, Republican of Ohio, and Elissa Slotkin, Democrat of Michigan.

Its stated purpose is to prevent foreign adversaries from using internet-connected automobiles, vehicle software, communications equipment, autonomous-driving systems and data platforms to collect information about American drivers, military facilities, critical infrastructure and other sensitive locations.

Supporters also say the measure is needed to protect the American automobile industry from heavily subsidized Chinese manufacturers that could use lower prices, government support and control of critical technology to capture a major share of the U.S. vehicle market.

What the Bill Could Do

• Prohibit or restrict the importation, manufacture, sale and resale of connected vehicles associated with China, Russia, Iran, North Korea and other designated foreign adversaries.
• Restrict foreign-adversary-linked vehicle software, communications hardware, automated-driving systems and data-management technology.
• Give the U.S. Department of Commerce authority to identify and block automotive technologies or transactions considered a threat to national or economic security.
• Establish enforcement procedures and penalties intended to keep prohibited connected technology out of the American vehicle fleet.
• Require automakers and suppliers to document where connected-vehicle hardware and software originate and who may have access to vehicle data.

Covered connectivity could include cellular communications, Wi-Fi, Bluetooth, satellite links, vehicle cameras, microphones, sensors and systems that transmit location information, driving behavior, diagnostics, audio, video and personal data.

The Unexpected Ownership Problem

One of the most controversial parts of the proposal may affect companies that are not Chinese automobile manufacturers.

Ownership language discussed during the committee process could restrict connected vehicles sold by manufacturers with significant Chinese ownership. Mercedes-Benz has substantial Chinese shareholdings through investments associated with BAIC and Geely founder Li Shufu.

That has raised questions about whether a German-controlled manufacturer with major American factories, employees, dealers and suppliers could be swept into a law intended primarily to block Chinese government access to connected vehicles.

Committee Chairman Ted Cruz agreed that foreign vehicle-security concerns are legitimate but warned against writing an indiscriminate law that could unintentionally restrict competition or punish companies that are not controlled by China.

What Supporters Are Saying

Senator Bernie Moreno

Moreno argues that China’s subsidized automobile industry represents a major threat to American manufacturing. He says the United States must act before Chinese manufacturers use government support and lower prices to dominate the market and its supply chain.

Senator Elissa Slotkin

Slotkin has described Chinese connected vehicles as potential surveillance packages on wheels. She warns that vehicle sensors and communications systems could collect information about American citizens, military bases and critical infrastructure.

General Motors

General Motors supports legislation that strengthens American manufacturing and improves the competitive position of U.S. automakers. The company says American manufacturers can compete globally when they operate on a level playing field.

United Auto Workers

The UAW supports stronger restrictions on Chinese vehicles and components, arguing that America’s national and economic security depend on maintaining domestic automobile production and well-paid manufacturing jobs.

Steel and Manufacturing Groups

American steel and manufacturing organizations say restrictions on Chinese vehicles, batteries and connected components could strengthen the domestic automotive supply chain and reduce American dependence on foreign-adversary-controlled technology.

Trucking Industry

Trucking organizations are concerned about communications systems embedded in commercial vehicles and the potential exposure of freight routes, cargo data, logistics networks and critical supply-chain information.

What Critics and Affected Companies Are Saying

Mercedes-Benz

Mercedes-Benz says it supports laws that protect U.S. national security but wants Congress to avoid language that damages its American operations, employees, dealers, suppliers and customers.

The company maintains that its Chinese shareholders do not control Mercedes-Benz management or corporate governance and points to its extensive U.S. manufacturing presence.

Automakers and Suppliers

Automakers generally recognize the security concerns but warn that replacing Chinese software, communications modules, battery-management systems, semiconductors and electronic components could be expensive and technically complicated.

Vehicle manufacturers may not always know the ultimate origin of every chip, circuit board or software library used several levels down their supply chains. Compliance could require a new level of tracing and certification covering thousands of components and suppliers.

Chinese Officials and Manufacturers

Chinese officials and companies characterize American restrictions as protectionism rather than cybersecurity policy. They argue that Chinese components are widely used because they are technologically advanced, competitive and cost-effective.

Which Automakers Could Be Affected?

• Chinese vehicle manufacturers seeking to enter the United States directly or through joint ventures.
• Polestar, because of its relationship with China’s Geely Holding.
• Volvo Cars, which is controlled by Geely but operates as a global manufacturer with substantial non-Chinese operations.
• Mercedes-Benz, depending on how final ownership thresholds are written.
• American, European, Japanese and Korean automakers using Chinese-developed communications modules, software, batteries, battery-management systems or automated-driving technology.
• Autonomous-vehicle developers using Chinese-designed platforms, sensors, connectivity hardware or data-processing systems.

Implications for American Car Buyers

Fewer Low-Priced Chinese Vehicles

Chinese manufacturers have introduced increasingly sophisticated electric vehicles at prices many Western manufacturers have difficulty matching. The legislation would make it extremely difficult for those vehicles to be sold legally in the United States.

Potentially Higher Vehicle Prices

Removing lower-cost Chinese components and suppliers may increase production costs. Automakers would probably pass at least part of those expenses to buyers.

More Domestic Production

The restrictions could encourage manufacturers and suppliers to produce vehicles, batteries, communications systems, semiconductors and software in the United States or allied countries.

Better Supply-Chain Transparency

Automakers may be required to provide much more information about who designed, programmed and manufactured every important connected-vehicle component.

Questions About Existing Vehicles

Consumers will want to know whether vehicles already on American roads will continue receiving software updates, replacement parts, warranty coverage and connected services. The final legislation and its implementation rules will need to address existing owners.

Greater Awareness of Vehicle Data

The debate is a reminder that modern vehicles are rolling computers. Cars can collect location history, contact information, voice commands, camera images, driving behavior and diagnostic data regardless of whether the manufacturer is Chinese, American, European, Japanese or Korean.

National Security Law or Industrial Protectionism?

The legislation rests on two separate arguments that are frequently presented together.

The first is national security. A hostile government could theoretically use connected vehicles to collect intelligence, map critical facilities, monitor individuals, interfere with transportation or remotely disrupt vehicle systems.

The second is economic protection. China’s manufacturing capacity, government subsidies and rapidly improving vehicles could overwhelm American manufacturers that face higher labor, regulatory and development costs.

Both concerns may be legitimate. However, combining them creates a risk that cybersecurity becomes a convenient justification for excluding ordinary commercial competition.

Congress should establish measurable security standards based on control, data access, software integrity and actual technical risks rather than relying only on a company’s country of origin or the nationality of minority shareholders.

What Happens Next?

Committee passage does not make the Connected Vehicle Security Act law.

The bill must still be considered by the full Senate. The House would then need to approve identical legislation, or House and Senate negotiators would have to reconcile differences between their respective versions. The final measure would then be sent to the president.

Ownership thresholds, waiver provisions, battery requirements, implementation dates and definitions of prohibited technology are likely to receive additional scrutiny before final passage.

For automakers, suppliers and technology companies, the direction is already clear: every business involved in connected vehicles will need to know where its hardware comes from, who developed its software, where its data travels and whether any foreign-adversary-linked organization has access to the system.

Compiled and analyzed by The Auto Channel editorial staff.
Human Intelligence for Human Drivers.