To prohibit the Secretary of Defense from entering into software source code contracts with entities with certain relationships with China, and for other purposes.

# HR 3961 Summary **What the Bill Would Do** This bill would prevent the U.S. Department of Defense from signing contracts with companies to develop or access software source code if those companies have certain business ties to China. The legislation aims to protect sensitive military technology and computer systems from potential foreign influence or security risks by restricting which private companies can work on classified or critical defense software projects. **Who It Affects** The bill primarily affects defense contractors and technology companies that work with the Pentagon. Any firm with significant financial relationships, ownership stakes, or business connections to Chinese entities could be barred from bidding on defense software contracts.

This could impact how the Department of Defense sources software development and may narrow the pool of available contractors for certain projects. **Current Status** The bill was introduced by Representative Pat Fallon (R-TX) in the 119th Congress and is currently under review in committee. It has not yet advanced to a full House vote. The bill remains in the early legislative stage, meaning its final form and likelihood of passage have not been determined.