What does Preamble of SCALE Act do?

This bill requires the Secretary of Commerce, in coordination with the Director of National Intelligence, to establish a rolling annual standard for the sale of certain integrated circuits to certain countries. The bill was introduced in the House of Representatives on April 15, 2026.

What does SHORT TITLE. of SCALE Act do?

This bill is formally titled the Semiconductor Controls Adjusted to Limit Exports Act, also known as the SCALE Act.

What does STATEMENT OF POLICY. of SCALE Act do?

This section establishes U.S. policy regarding artificial intelligence (AI). The policy aims to lead in the global diffusion of AI hardware and software. It seeks to shape international markets to maintain reliance on U.S. and allied supply chains for AI. The policy supports export promotion and control agendas to maintain U.S. leadership in AI. It intends to ensure consistent application of export restrictions for national security. A goal is to limit adversaries' ability to produce their own AI hardware. The policy proposes a systematic annual process for assessing entities of concern and setting export control thresholds. The U.S. aims to prevent foreign adversaries from reaching parity with U.S. AI hardware capacity.

What does EXPORT PROMOTION AND CONTROL POLICY. of SCALE Act do?

This section establishes performance metrics to measure the state of AI hardware in entities of concern. The Secretary and the Director must establish and publicly release these metrics within 180 days of the Act's enactment. The metrics will assess the capability of AI hardware produced by entities of concern, aggregate production relative to demand, and the amount of AI hardware located in or controlled by entities of concern. Within 90 days of each metric update, a report assessing the quantity and quality of AI hardware produced in countries of concern will be submitted to Congress. The Secretary is required to adopt an export control policy for AI hardware, including remote access, to entities of concern. Export limits will be set annually, based on the assessment, and implemented as a policy of denial for license applications. Licenses for exports to entities of concern will be reviewed under a presumption of denial if approval would cause adversary AI hardware to exceed 5% of AI hardware physically present in the United States. The Secretary can modify metrics after 24 months, but must provide notice and justification to Congress, and changes are subject to congressional objection.

What does RULES OF CONSTRUCTION. of SCALE Act do?

This section outlines rules of construction for the Act. The Act prohibits the Secretary from decontrolling or reducing export control thresholds based on assessment findings. The Act also prohibits the Secretary from approving licenses for sales of AI hardware or software.

What does DEFINITIONS. of SCALE Act do?

This section defines key terms used throughout the Act. “AI hardware” includes items classified under specific Export Control Classification Numbers and items designated by the Secretary of Commerce. “Aggregate estimated amount of AI hardware” refers to the total quantity of AI hardware measured using metrics established by the Secretary. “Country of concern” includes specific nations like China, Cuba, Iran, North Korea, and Russia, as well as any other country meeting certain criteria. “Entity of concern” encompasses entities organized in, or with significant ties to, countries of concern. “Indigenous production” refers to AI hardware fabricated in China and designed by an entity of concern. “Remote access” is defined as purposeful access to AI hardware from a remote location that poses a risk to U.S. national security. “Appropriate congressional committees” are specified as committees within the House and Senate.

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SCALE Act

Last updated: 4/15/2026 · Introduced: 4/15/2026

Author: John Moolenaar (R-MI)

TL;DR (AI)

The SCALE Act requires the Secretary of Commerce and the Director of National Intelligence to establish annual standards for semiconductor sales to specific countries.
This bill establishes a policy to promote U.S. leadership in artificial intelligence (AI) hardware and software by shaping international markets and limiting adversaries' AI capabilities.
The Act mandates annual export control policies for AI hardware, including denial of licenses if sales would cause an adversary's AI hardware to exceed 5% of the AI hardware physically present in the United States.

119th Congressin committeeOfficial page

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Includes provisions on preamble, short title., and 4 more.

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