Rulemaking exclusion for foreign adversaries

Full Title:
Safeguarding U.S. Rulemaking Act

Summary#

This bill would stop certain foreign governments and people or companies tied to them from taking part in federal rulemaking (the process where agencies publish proposed rules and accept public comment). The main change is an added rule that bars any government the Commerce Secretary has labeled a “foreign adversary,” plus nationals of and entities incorporated in such a government, from submitting comments or petitions under the Administrative Procedure Act notice-and-comment process. The broad goal is to limit participation in U.S. rulemaking by actors the government has identified as hostile.

  • Main change: Agencies must refuse participation in rulemaking and petitions from foreign governments designated as “foreign adversaries” under the Commerce Department rule, and from nationals of or entities incorporated in those governments.
  • Where it fits: The bill amends the notice-and-comment rules in the Administrative Procedure Act.
  • Who sets the list: The bill refers to the Commerce Department’s existing rule that identifies “foreign adversaries.”
  • Effect on agencies: Agencies would have a new, explicit exception to allow them to exclude these commenters.
  • Scope: The exclusion targets foreign governments designated under the cited Commerce rule and persons or entities that are nationals of or incorporated in those governments.

What it means for you#

  • Federal agencies: Agencies that run notice-and-comment rulemaking would need to screen comments and petitions to identify and reject those from a designated foreign government, its nationals, or entities incorporated in that government.
  • Foreign governments and diplomats: A foreign government labeled a “foreign adversary” could not submit comments or petitions in U.S. federal rulemaking.
  • Foreign nationals and foreign-incorporated entities: People who are nationals of, or companies incorporated in, a designated foreign adversary would be ineligible to comment or petition under the rulemaking process.
  • Businesses with foreign ties: This could affect companies that are incorporated in a designated country or whose legal nationality is in that country. It may not automatically apply to foreign-owned subsidiaries incorporated in the United States; the bill focuses on incorporation or nationality tied to the designated government.
  • Members of the public in the U.S.: The bill does not change the ability of U.S. citizens, lawful permanent residents, or U.S.-incorporated entities without the specified foreign ties to comment.
  • Rulemaking participants (trade groups, NGOs, consultants): Those that are nationals of or incorporated in a designated foreign government would be barred. The bill does not clearly address organizations with mixed or dual structures.

Expenses#

No publicly available information.

  • The bill itself does not include a fiscal note or cost estimate.
  • This change could increase administrative work for agencies that must identify and filter out ineligible comments and petitions.
  • Agencies may need to update intake systems, staff screening, and legal review processes; these would likely have some cost, but no estimate is provided.
  • Legal challenges could create additional litigation costs; the bill does not discuss enforcement funding.

Proponents' View#

  • The bill appears intended to prevent governments the Commerce Department has labeled as “foreign adversaries” from influencing U.S. rulemaking.
  • Supporters may argue this approach protects national security and regulatory integrity by excluding adversarial state actors from the public comment process.
  • Making an explicit exclusion in the Administrative Procedure Act could simplify an agency’s authority to refuse input from specified foreign actors.
  • Using the Commerce Department’s existing designation system ties the exclusion to an established administrative process.

Opponents' View#

  • One concern is that the bill could block useful information from foreign companies with legitimate U.S. operations if they are nationals of or incorporated in a designated country.
  • The bill does not clearly explain how to treat dual nationals, persons with mixed citizenship, or companies with complex ownership or incorporation structures; this could create uncertainty for agencies and commenters.
  • Agencies may face added administrative burden to verify nationality or incorporation and to process challenges to exclusions.
  • It is unclear how the exclusion would apply to U.S.-incorporated subsidiaries of foreign firms or to individuals who live in the U.S. but hold foreign nationality.
  • The bill does not provide a fiscal estimate or implementation guidance, leaving open questions about staffing, systems changes, and potential legal disputes.