H.R. 5885: GAIN AI Act of 2025
Sponsor
John Moolenaar
Republican · MI-2
Bill Progress
Latest Action · Oct 31, 2025
Referred to the House Committee on Foreign Affairs.
Why it matters
The bill responds to urgent fights over advanced AI chip exports by requiring U.S. buyers to get a first chance to purchase certain chips before companies can sell them to entities tied to countries of concern.
The bill also creates a path around some existing license rules for a "Trusted United States Person." To qualify, the entity must use physical and cybersecurity protections, keep a majority of aggregate processing performance from being transferred or installed outside the United States, and ensure that no more than 10% of ultimate beneficial ownership is held by an entity residing, domiciled, or doing most of its business in a country of concern. It also must submit an annual audit or attestation. The Under Secretary has 120 days after enactment to write the regulations for both the certification system and trusted-person designations, and can begin adding new technical parameters to the advanced-chip definition 24 months after enactment.
What does H.R. 5885 do?
License denied without required certification
The bill requires a license for exporting, reexporting, or transferring a covered advanced circuit or product to an entity located in, headquartered in, or owned by a parent headquartered in a country of concern. The applicant must certify that it gave U.S. persons a right of first refusal, and the Under Secretary of Commerce for Industry and Security must deny any application that does not include that certification.
120-day deadline for Commerce rules
The Under Secretary of Commerce for Industry and Security must issue regulations not later than 120 days after enactment. Those rules must cover the certification process, Trusted United States Person designations, public consultation, and penalties for misrepresentation and concealment of material facts.
15-day public notice, 15-business-day purchase window
To satisfy the right of first refusal, the seller must give public notice for not less than 15 days. If a U.S. person chooses to buy, the purchase must be completed within 15 business days, and the U.S. buyer must receive pricing and terms at parity with the foreign purchaser.
Trusted status capped at 10% concern-country ownership
A company can qualify as a Trusted United States Person only if not more than 10% of its ultimate beneficial ownership is held by an entity residing, domiciled, or conducting the majority of its business in a country of concern. It also must implement physical and cybersecurity protections, avoid transferring or installing a majority of aggregate processing performance outside the United States, and file an annual audit or attestation.
Targets top-end chips at 4,800 and 1.6/2,400 thresholds
The bill defines an advanced integrated circuit using ECCN 3A090 and 4A090 classifications and technical thresholds, including processing performance of 4,800 or more, or performance density of 1.6 or more with at least 2,400 processing performance, plus DRAM and interconnect bandwidth thresholds. It also covers products containing those chips unless they are not designed or marketed for data centers.
Commerce can tighten chip definitions after 24 months
Beginning 24 months after enactment, the Under Secretary may add new technical parameters to the definition of advanced integrated circuit. That gives Commerce a way to update the rules as AI hardware changes without waiting for a new law.
Who benefits from H.R. 5885?
U.S. AI developers and data-center operators
They get a legally protected first opportunity to buy certain advanced chips before those chips can be licensed for export to entities tied to countries of concern. The process includes at least 15 days of public notice and a 15-business-day completion window if a U.S. buyer steps up.
Trusted United States Person companies
Companies that can meet the bill's standards may avoid some license requirements under 15 CFR 742.6 and 744.23 when products are destined for a non-country of concern and remain under their ownership or control. To qualify, they must keep concern-country ultimate beneficial ownership at 10% or less and submit an annual audit or attestation.
U.S. national security officials
The bill gives Commerce stronger control over exports of top-end AI hardware, including chips classified under ECCN 3A090 and 4A090 and those meeting thresholds like 4,800 processing performance. It also lets the Under Secretary add new technical parameters starting 24 months after enactment.
American chip buyers competing with foreign demand
The bill requires sellers to offer U.S. buyers pricing and terms comparable to foreign purchasers, rather than steering inventory overseas first. That could help domestic customers that have struggled to secure leading-edge AI chips during periods of tight supply.
Who is affected by H.R. 5885?
Semiconductor manufacturers and exporters
They would face a new compliance burden whenever selling covered advanced circuits or products to entities in countries of concern. They must provide certification, manage a public notice process of not less than 15 days, close any U.S. purchase within 15 business days, and risk denial if paperwork is incomplete.
Foreign entities tied to countries of concern
These buyers would face stricter access to covered AI chips because exports, reexports, and in-country transfers would require a license. The bill defines countries of concern as those in Country Group D:5 or E in 15 CFR Part 740, plus Macau and Hong Kong.
Multinational firms with concern-country investors
Companies seeking Trusted United States Person status could be blocked if more than 10% of ultimate beneficial ownership is held by an entity residing, domiciled, or mainly doing business in a country of concern. That ownership cap may force restructuring or disqualify some firms entirely.
Federal export control officials
The Under Secretary of Commerce for Industry and Security must build the new system within 120 days after enactment, approve trusted-person designations, consult with the public, and write rules on penalties for misrepresentation and concealment of material facts. Federal officials are also barred from selecting or prioritizing one U.S. person over another when multiple U.S. persons exercise the right of first refusal.
What Congress Is Saying
H.R. 5885 hasn't been debated on the floor yet.
This section updates when a legislator speaks about it on the floor or in committee.
HR5885 Legislative Journey
House: Committee Action
Oct 31, 2025
Referred to the House Committee on Foreign Affairs.
About the Sponsor
John Moolenaar
Republican, Michigan's 2nd congressional district · 11 years in Congress
Committees: House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party, Appropriations
View full profile →
Cosponsors (4)
This bill has 4 cosponsors: 2 Democrats, 2 Republicans, reflecting bipartisan support. Cosponsors represent 4 states: Arkansas, Illinois, New Jersey, and 1 more.
Committee Sponsors
Foreign Affairs Committee
0 of 51 committee members cosponsored
No committee members have cosponsored this bill
28 Republicans across this committee haven't cosponsored yet. Mobilize their constituents
H.R. 5885 Quick Facts
- Committee
- Foreign Affairs
- Chamber
- House
- Policy
- Foreign Trade and International Finance
- Introduced
- Oct 31, 2025
Referred to the House Committee on Foreign Affairs.
Oct 31, 2025
Who is lobbying on H.R. 5885?
3 organizations lobbying on this bill
NVIDIA CORPORATION | 1 |
ADVANCED MICRO DEVICES (AMD) | 1 |
THE ALLIANCE FOR SECURE AI ACTION | 1 |
Showing 1-3 of 3 organizations
H.R. 5885 Common Questions
What AI chips are covered by the GAIN AI Act 4800 2400 1.6 thresholds?
Under the GAIN AI Act of 2025 (SEC. 2), covered chips include ECCN 3A090/4A090 or similar chips with 4,800+ processing performance, or 2,400+ with 1.6+ density, plus certain DRAM/interconnect bandwidth thresholds.
How much foreign ownership is allowed for Trusted United States Person status under HR 5885?
According to H.R. 5885 SEC. 2, a company can have no more than 10% ultimate beneficial ownership tied to an entity residing, domiciled, or mainly doing business in a country of concern.
How long do US buyers have to exercise the right of first refusal for AI chips?
Under the GAIN AI Act of 2025 (SEC. 2), sellers must give at least 15 days of public notice, and a U.S. buyer that elects to purchase must take material steps to complete the deal within 15 business days.
Can Commerce deny an AI chip export license if the seller did not give US buyers first refusal?
Yes. Under the GAIN AI Act of 2025 (SEC. 2), the applicant must certify it offered U.S. persons a right of first refusal, and the Under Secretary must deny any license application missing that certification.
Which countries count as countries of concern under the GAIN AI Act?
According to H.R. 5885 SEC. 2, it covers countries in Country Group D:5 or E, plus Hong Kong and Macau. The license rule applies when the buyer is located in, headquartered in, or owned by a parent headquartered in one of those places.
Does the GAIN AI Act require US buyers to get the same price and terms as foreign buyers?
Yes. Under the GAIN AI Act of 2025 (SEC. 2), a U.S. person exercising the right of first refusal must receive pricing and terms at parity with the foreign purchaser.
Can a Trusted United States Person avoid some existing BIS AI chip license rules?
Yes. According to H.R. 5885 SEC. 2, license requirements in 15 C.F.R. §§ 742.6 and 744.23 do not apply when the product goes to a non-country of concern and stays under a Trusted United States Person’s ownership or control.
Does the bill stop companies from shifting most AI chip processing power overseas?
Yes. Under the GAIN AI Act of 2025 (SEC. 2), a Trusted United States Person cannot transfer or install a majority of its aggregate total processing performance of covered circuits outside the United States.
How soon would Commerce have to issue GAIN AI Act regulations?
According to H.R. 5885 SEC. 2, the Under Secretary must issue regulations within 120 days after enactment, covering certifications, Trusted United States Person designations, consultation, and penalties for misrepresentation.
Can Commerce expand the AI chip definition later without Congress passing a new law?
Yes. Under the GAIN AI Act of 2025 (SEC. 2), beginning 24 months after enactment, the Under Secretary may add new technical parameters to the advanced integrated circuit definition through notice-and-comment rulemaking.
Based on H.R. 5885 bill text
H.R. 5885 Bill Text
“To require entities seeking a license to export advanced artificial intelligence chips to countries of concern to certify that United States persons have priority in acquiring those chips.”
Source: U.S. Government Publishing Office
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