S 2177
No Adversarial AI Act
TL;DR
Senator Rick Scott's bill would ban US federal agencies from buying or using AI systems developed by companies tied to adversarial foreign governments like China, Russia, Iran, and North Korea. Think DeepSeek, or any AI tool linked to entities on federal watch lists. Contractors selling to the government would need to certify their AI supply chain is free of these tools.
How This Might Impact Your Business
Federal contractors would need to certify that AI products sold to US agencies do not originate from companies controlled by China, Russia, Iran, or North Korea (including firms like DeepSeek).
Government IT vendors, cloud providers, and SaaS companies with federal customers would face new supply chain diligence requirements to prove their AI components are clean.
Defense contractors, consulting firms, and systems integrators serving federal clients would need to audit AI tools embedded in their offerings, including third-party libraries and APIs.
Companies using Chinese-developed AI models (including open-source models like those from Alibaba or DeepSeek) internally could lose federal contract eligibility.
No specific revenue threshold or company size exemption is mentioned; any business selling AI-enabled products to federal agencies would be in scope.
Waivers may be available for national security or research purposes, but expect strict OMB oversight.
Currently in the Homeland Security committee with no scheduled markup; enforcement timelines would follow enactment.
What Should You Do
Inventory all AI models, APIs, and vendors in your product stack and identify any with ties to China, Russia, Iran, or North Korea (including open-source models like DeepSeek or Qwen).
If you sell to federal agencies, ask your legal and procurement teams to prepare a certification framework for AI supply chain provenance.
Review contracts with cloud and AI vendors to confirm they can attest to the origin of underlying models and training data.
Monitor the Senate Homeland Security Committee for hearings or markup activity on S 2177.
Brief product and engineering leaders now so future AI procurement decisions consider federal sales eligibility.
Who It Affects
Sponsors
Status Timeline
committee
Read twice and referred to the Committee on Homeland Security and Governmental Affairs.
June 25, 2025