Moran Bill Aims to Cut Tax Breaks for Firms Using 'Foreign Adversary' Tech

Proposed legislation would deny federal incentives to companies using technology controlled by rival nations.

Mar. 22, 2026 at 10:41pm

U.S. Representative Nathaniel Moran, a Republican from Tyler, Texas, has introduced a bill that would deny federal tax incentives to companies using technology controlled by foreign adversaries. The goal is to limit the use of potentially compromised or hostile technology within American businesses.

Why it matters

This bill reflects growing concerns about the national security risks posed by foreign-controlled technology, especially from geopolitical rivals like China. It's part of a broader push to reduce American reliance on tech from 'adversary' nations that could be used for espionage or to disrupt critical infrastructure.

The details

Moran's legislation would revoke tax breaks and other federal incentives for companies that utilize technology, software, or equipment owned or controlled by 'foreign adversaries' as defined by the U.S. government. The goal is to create financial disincentives for businesses to adopt potentially compromised technology from rival nations.

  • The bill was introduced in the U.S. House of Representatives on March 22, 2026.

The players

Nathaniel Moran

A Republican U.S. Representative from Tyler, Texas who introduced the legislation to deny tax incentives to companies using foreign adversary technology.

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The takeaway

This bill reflects growing bipartisan concerns about national security risks from foreign-controlled technology, and the desire to reduce American reliance on potentially compromised tech from geopolitical rivals through financial disincentives.