Ernst, Moolenaar Work with Pentagon to Safeguard Critical Tech from China

WASHINGTON – U.S. Senate Committee on Small Business and Entrepreneurship Chair Joni Ernst (R-Iowa) and House Select Committee on China Chair John Moolenaar (R-Mich.) asked the Pentagon how Congress can best help close existing loopholes and safeguard critical defense technology from China.

The letter comes after the Pentagon agreed that reforms need to be made to the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs by establishing consistent foreign due diligence standards across government, as Ernst’s INNOVATE Act does.

“The Trump administration has a chance to reverse Biden-era policies and strengthen American research security. Our review has identified recommendations to address shortcomings in Pentagon policy, due diligence, training, and access to critical information. We stand ready to assist and are committed to ensuring 100% of taxpayer dollars for critical technology development serves our warfighters and America’s national interest,” wrote the lawmakers.

Click here to view the letter.

Background:

Ernst released a report in May exposing that out of 522 applications at the Pentagon flagged for having a foreign risk in 2023 and 2024, only 152 applications were denied on the basis of that risk.

Even worse, some agencies denied 100% of flagged applicants, while others denied less than 1%. These risks spanned from patent and employee analysis flags to flags concerning financial ownership or financial obligations.

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