Summary
# H.R. 748: Stop CCP Infrastructure Act
## WHAT THIS BILL DOES
This bill stops the federal government from giving money to companies connected to China for construction and infrastructure projects in the United States. The bill also prevents state and local governments that receive federal funds from giving those funds to Chinese-connected companies for similar projects.
## WHO IT AFFECTS
Federal agencies that distribute money for public works projects, state governments receiving federal funds, local governments receiving federal funds, and companies based in or controlled by China or the Chinese government.
## KEY PROVISIONS
• The federal government cannot give money to any "covered entity" (a company connected to China) for any "covered public works project" (Sec. 2(a)).
• State and local governments receiving federal funds must make sure the companies they hire for public works projects have no connections to any covered entity (Sec. 2(c)).
• A covered entity includes companies headquartered in China and companies owned, directed, controlled, financed or influenced by the Chinese government, the Communist Party of China, or the Chinese military (Sec. 2(a)).
• A covered public works project includes construction, repair, renovation or maintenance of public buildings, roads, bridges, water works, sewers and similar improvements paid for with public funds (Sec. 2(a)).
• Federal purchasing regulations must be updated to carry out this law (Sec. 2(e)).
## WHAT CHANGES
If this becomes law, federal agencies cannot fund public works contracts with Chinese-connected companies. State and local governments must verify that any company they hire for public works projects has no ties to China before accepting federal money for that project.
## IMPORTANT DEFINITIONS
**Covered Entity:** Any company headquartered in China or owned, controlled, financed or influenced by the Chinese government, the Communist Party of China, or the Chinese military. This includes parent companies, subsidiaries and affiliate companies of such entities.
**Covered Public Works Project:** Any construction, repair, renovation or maintenance of public buildings, roads, bridges, water works, sewers, docks, underpasses, viaducts or other improvements on public property paid for with public funds or financed with public funds.
## EFFECTIVE DATE
180 days after the bill becomes law (Sec. 2(f)).
I
118TH CONGRESS
1ST SESSION
H. R. 748
To amend title 40, United States Code, to prohibit the distribution of Federal
funds to certain entities related to the People’s Republic of China for
certain public works projects, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Ms. TENNEY
(for herself, Ms. SPANBERGER, Mr. PHILLIPS, and Mr.
FITZPATRICK) introduced the following bill; which was referred to the
Committee on Transportation and Infrastructure
A BILL
To amend title 40, United States Code, to prohibit the dis-
tribution of Federal funds to certain entities related to
the People’s Republic of China for certain public works
projects, and for other purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Stop Communist Con-
4
struction of Public Infrastructure Act’’ or the ‘‘Stop CCP
5
Infrastructure Act’’.
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•HR 748 IH
SEC. 2. RESTRICTION OF ENTITIES FROM USING FEDERAL
1
FUNDS FROM ENGAGING, ENTERING INTO,
2
AND AWARDING PUBLIC WORKS CONTRACTS.
3
(a) IN GENERAL.—Chapter 33 of title 40, United
4
States Code, is amended by adding at the end the fol-
5
lowing:
6
‘‘§ 3319. Restriction of entities from using Federal
7
funds to engage, enter into, and award
8
public works contracts
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‘‘(a) IN GENERAL.—Notwithstanding any other pro-
10
vision of law, Federal funds may not be provided to any
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covered entity for any covered public works project.
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‘‘(b) REQUIREMENTS.—Any entity receiving funds
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for any covered public works project shall be free from
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any obligations, influences, or connections to any covered
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entity.
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‘‘(c) EXCEPTION.—This section shall only apply to
17
projects that are located in the United States.
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‘‘(d) DEFINITIONS.—In this section:
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‘‘(1) COVERED ENTITY.—The term ‘covered en-
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tity’ means any entity that—
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‘‘(A) is headquartered in China;
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‘‘(B) is owned, directed, controlled, fi-
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nanced, or influenced directly or indirectly by
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the Government of the People’s Republic of
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China, the CCP, or the Chinese military, in-
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•HR 748 IH
cluding any entity for which the Government of
1
the People’s Republic of China, the CCP, or the
2
Chinese military have the ability, through own-
3
ership of a majority or a dominant minority of
4
the total outstanding voting interest in an enti-
5
ty, board representation, proxy voting, a special
6
share, contractual arrangements, formal or in-
7
formal arrangements to act in concert, or other
8
means, to determine, direct, or decide for an
9
entity in an important manner; or
10
‘‘(C) is a parent, subsidiary, or affiliate of
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any entity described in subparagraph (B).
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‘‘(2) COVERED PUBLIC WORKS PROJECT.—The
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term ‘covered public works project’ means any
14
project of the construction, repair, renovation, or
15
maintenance of public buildings, structures, sewers,
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water works, roads, bridges, docks, underpasses and
17
viaducts, as well as any other improvement to be
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constructed, repaired or renovated or maintained on
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public property to be paid, in whole or in part, with
20
public funds or with financing to be retired with
21
public funds in the form of lease payments or other-
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wise.’’.
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(b) CLERICAL AMENDMENT.—The analysis for chap-
24
ter 33 of title 40, United States Code, is amended by in-
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•HR 748 IH
serting after the item relating to section 3318 the fol-
1
lowing:
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‘‘3319. Restriction of entities from using Federal funds to engage, enter into,
and award public works contracts.’’.
(c) NON-FEDERAL PUBLIC WORKS.—Chapter 35 of
3
title 40, United States Code, is amended by adding at the
4
end the following:
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‘‘§ 3506. Restriction of States and local governments
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from using Federal funds to engage,
7
enter into, and award public works con-
8
tracts
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‘‘(a) IN GENERAL.—A State or local government re-
10
ceiving Federal funds may not provide such funds to any
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covered entity for any covered public works project.
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‘‘(b) REQUIREMENTS.—A State or local government
13
shall verify that any entity receiving funds for any covered
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public works project is free from any obligations, influ-
15
ences, or connections to any covered entity.
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‘‘(c) EXCEPTION.—This section shall only apply to
17
projects that are located in a State.
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‘‘(d) DEFINITIONS.—In this section:
19
‘‘(1) COVERED ENTITY.—The term ‘covered en-
20
tity’ means any entity that—
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‘‘(A) is headquartered in China;
22
‘‘(B) is owned, directed, controlled, fi-
23
nanced, or influenced directly or indirectly by
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•HR 748 IH
the Government of the People’s Republic of
1
China, the CCP, or the Chinese military, in-
2
cluding any entity for which the Government of
3
the People’s Republic of China, the CCP, or the
4
Chinese military have the ability, through own-
5
ership of a majority or a dominant minority of
6
the total outstanding voting interest in an enti-
7
ty, board representation, proxy voting, a special
8
share, contractual arrangements, formal or in-
9
formal arrangements to act in concert, or other
10
means, to determine, direct, or decide for an
11
entity in an important manner; or
12
‘‘(C) is a parent, subsidiary, or affiliate of
13
any entity described in subparagraph (B).
14
‘‘(2) COVERED PUBLIC WORKS PROJECT.—The
15
term ‘covered public works project’ means any
16
project of the construction, repair, renovation, or
17
maintenance of public buildings, structures, sewers,
18
water works, roads, bridges, docks, underpasses and
19
viaducts, as well as any other improvement to be
20
constructed, repaired or renovated or maintained on
21
public property to be paid, in whole or in part, with
22
public funds or with financing to be retired with
23
public funds in the form of lease payments or other-
24
wise.’’.
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•HR 748 IH
(d) CLERICAL AMENDMENT.—The analysis for chap-
1
ter 35 of title 40, United States Code, is amended by add-
2
ing at the end the following:
3
‘‘3506. Restriction of States and local governments from using Federal funds
to engage, enter into, and award public works contracts.’’.
(e) UPDATING REGULATIONS.—The Federal Acquisi-
4
tion Regulation and the Defense Federal Acquisition Reg-
5
ulation shall be revised to implement the provisions of this
6
Act.
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(f) RULE
OF APPLICABILITY.—The amendments
8
made by this section shall take effect, and shall apply to
9
projects beginning on or after, 180 days after the date
10
of enactment of this Act.
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Æ
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