Securing National Security Systems from Chinese Optical Transceivers Act of 2026

The bill would extend an existing federal procurement prohibition to covered optical transceivers. The prohibition would take effect five years after enactment, and it would not prevent agencies from procuring items containing one for a system that is not a critical system.

Covered items would include optical transceivers designed, made, or supplied by InnoLight, Eoptolink, their subsidiaries, affiliates, or successors, and certain entities determined to be connected to a foreign country of concern. The definition also covers items incorporating those entities’ firmware, software, or components.

Commerce, working with other agencies, would assess domestic and allied or partner production capacity, risks in federal systems and contractor supply chains, and ways to improve supply and traceability. It would also develop a strategy for ensuring the government can obtain needed transceivers while applying the restrictions.

The Federal Acquisition Regulatory Council would update regulations for covered optical transceivers within three years after enactment. The Federal Acquisition Security Council would recommend ways to address supply-chain risks and any needed regulations.

Agencies would report on implementation challenges and waiver effectiveness, and Commerce would report its assessment and strategy to Congress. The Federal Acquisition Security Council would include information about its recommendations and their effects in annual reports for ten years.