Tenney, Rubio Introduce Bill to ‘Turn Off the Tap’ on Federal Investment in Blacklisted Chinese Firms

Washington, D.C. – Congresswoman Claudia Tenney (NY-22) today introduced the Turn Off Federal Funding of Threatening Entities that Thwart American Prosperity Act, or the Turn OFF THE TAP Act, to prohibit federal taxpayer dollars from lining the pockets of entities included on federal trade and sanctions lists, either directly or through third parties. A Senate companion was also introduced by Senator Marco Rubio (FL) and cosponsored by Senators Marsha Blackburn (TN) and Rick Scott (FL).

There is currently no central ban on federal funds going to foreign firms explicitly identified through U.S. government blacklists, including dangerous Chinese companies. The Turn OFF THE TAP Act addresses this national security vulnerability by prohibiting federal funds from going to firms listed on several federal blacklists, including the Department of Commerce’s Entity List and the Non-SDN Chinese Military-Industrial Complex Companies List. As the Chinese Communist Party (CCP) continues its offensive against American national, economic, and industrial security, while also committing gross human rights abuses, American taxpayers should not be forced to line its pockets.

“The American people’s tax dollars should not be invested in blacklisted Chinese companies. Yet today, because of weak policies in Washington, they continue to be. It’s time we cut off the tap. The Chinese Communist Party’s predatory trade policies, significant human rights abuses, and threats to American security are absolutely unacceptable,” said Tenney. In upstate New York, we have seen their disastrous effects firsthand. Enough is enough. It is time to step up and make commonsense reforms to ensure Americans are not funding these entities.”

“It’s not only dangerous to fund Chinese businesses with American taxpayer dollars, but it’s also dumb," said Rubio. "This bill would prohibit federal funds from bankrolling Chinese and other firms we know are not acting in our best interest.”

Specifically, the Turn OFF THE TAP Act prohibits the federal government from contracting with entities included on several federal trade and sanctions lists, and mandates that no federal funds received by third parties (such as grant recipients or local governments) may go to such blacklisted entities—such as Chinese drone maker DJI or Chinese defense conglomerate AVIC. This legislation would apply to any company featured on the SDN List, the NS-CMIC List, the DOD’s CMC list, Commerce’s Entity List, or the FCC’s covered list, as well as any subsidiaries of such firms.

The full text of the legislation is available here.

Congresswoman Tenney and Senator Rubio have collaborated previously on legislation to hold China accountable, which includes their work together on H.R. 6650, the No Chinese Communist SURPRISE Parties Act. This bicameral legislation would direct the U.S. Securities and Exchange Commission to require any company listed on the U.S. exchanges to identify whether a Chinese Community Party organization is present in the firm’s operations.

###