Rep. Moolenaar Proposes Capping Rival AI Hardware at 5 Percent of U.S. Levels in New SCALE Act
The SCALE Act was recently introduced in the House and is currently being reviewed by two different committees. It is in the early stages of the legislative process and is actively moving forward. There are no upcoming votes scheduled at this time.
This bill sets very strict rules that could hurt the profits of major U.S. tech companies, leading to heavy lobbying against it.
Small U.S. semiconductor and AI hardware companies that sell internationally could face significant new compliance burdens, including third-party testing requirements and detailed certifications for every export license. Some smaller firms that rely on sales to entities in countries of concern may lose a portion of their revenue, though domestic demand could partially offset losses.
“prior to export, every shipment of AI hardware described in the license application will be reviewed by a qualified independent third-party testing laboratory headquartered in the United States”
Referred to the Committee on Foreign Affairs, and in addition to the Committee on Intelligence (Permanent Select), for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
No votes have been recorded for this legislation yet.
The SCALE Act would set export limits dynamically based on China's indigenous production capacity, preventing Beijing from importing advanced U.S. AI chips when it has no at-scale indigenous alternative. It replaces the current binary process with affirmative government oversight.
The Scale Act, which had not been previously disclosed, would set export limits based on China's production capacity. The committee asserted that the legislation would counter the mix of legal and illegal means China uses to acquire American technology.
The House Select Committee on the Strategic Competition between the U.S. and the CCP has endorsed a suite of bills—including the Scale Act—aimed at closing loopholes in chip sales and cloud access. These controls determine who can train frontier models at scale.
Document Type
Congressional Bill
Official Title
SCALE Act
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