Rep. Moolenaar Proposes Capping Rival AI Hardware at 5 Percent of U.S. Levels in New SCALE Act
The SCALE Act is in the early stages of the legislative process and is currently sitting with the House Committee on Foreign Affairs and the House Permanent Select Committee on Intelligence. These committees must review the bill before it can move forward, but no action has occurred since April 14, 2026. Because most bills do not receive a committee vote, this proposal is not showing signs of active movement.
This bill sets very strict rules that could hurt the profits of major U.S. tech companies, leading to heavy lobbying against it.
Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
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.
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.
No votes or related bills recorded for this bill yet.
Document Type
Congressional Bill
Official Title
SCALE Act
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