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.
American buyers get first dibs on top AI chips
Why it matters
Before a company could ship the most advanced AI chips — the data-center-class hardware that trains the biggest models — to a buyer tied to China, Hong Kong, or Macau, H.R. 5885 would make it offer those chips to U.S. customers first, at the same price and terms. Sellers would post a public notice for at least 15 days, and any American buyer who steps up gets 15 business days to close the deal. Skip the required certification, and the Commerce Department has to deny the export license.
The GAIN AI Act zeroes in on one frustration: American companies have struggled to buy enough top-tier AI chips, while the same hardware gets cleared for sale to buyers overseas.
Here's the core rule. Any company that wants a license to export the most advanced AI chips to an entity located in, headquartered in, or owned by a parent in a country of concern would first have to certify that it offered those chips to U.S. buyers. No certification, no license — the Under Secretary of Commerce has to reject the application.
That "offer it to Americans first" step has real mechanics. The seller posts a public notice for at least 15 days. If a U.S. buyer wants in, they get the chips on the same terms the foreign buyer would have, and they have 15 business days to take material steps to close. The bill also bars companies from quietly giving foreign buyers better pricing than Americans.
The bill defines a "country of concern" as nations in two restricted export groups, plus Hong Kong and Macau. It defines the covered chips by classification and raw performance — the data-center-class hardware, not the processor in your laptop.
There's an off-ramp for companies that accept stricter rules. A "Trusted United States Person" could skip some existing export-license requirements, but only if it locks down physical and cyber security, keeps most of its AI computing power inside the U.S., caps ownership tied to countries of concern at 10%, and passes an annual audit.
Commerce would have 120 days after the bill becomes law to write all the rules. Starting two years in, it could add new technical parameters to the chip definition on its own as the hardware evolves.
H.R. 5885 Bill Summary
What H.R. 5885 actually does.
No certification, no export license
To export, reexport, or transfer a covered advanced chip or product to an entity located in, headquartered in, or owned by a parent headquartered in a country of concern, the seller must get a license and certify that it gave U.S. persons a right of first refusal. The Under Secretary of Commerce for Industry and Security has to deny any application that's missing that certification.
Americans get a 15-day heads-up and 15 days to buy
To satisfy the right of first refusal, the seller posts a public notice for at least 15 days. If a U.S. buyer elects to purchase, it has to take material steps to complete the deal within 15 business days — and it must get pricing and terms at parity with the foreign purchaser.
Commerce gets 120 days to write the rules
Within 120 days of enactment, the Under Secretary must consult the public and issue regulations covering the certification process, Trusted United States Person designations, recordkeeping, and penalties for misrepresentation and concealment of material facts.
Trusted-company status caps concern-country ownership at 10%
A company can qualify as a Trusted United States Person — and skip some existing license requirements — only if no more than 10% of its ultimate beneficial ownership is tied to an entity that resides, is domiciled, or does most of its business in a country of concern. It also has to put physical and cybersecurity protections in place, keep most of its aggregate processing performance inside the U.S., and file an annual audit or attestation.
Only data-center-class chips are covered
The bill defines an advanced chip using ECCN 3A090 and 4A090 classifications plus performance thresholds — for example, total processing performance of 4,800 or more, or 2,400 with a performance density of 1.6, along with high DRAM and interconnect bandwidth bars. Chips and products that aren't designed or marketed for data centers are excluded.
Commerce can tighten the chip definition after two years
Beginning 24 months after enactment, the Under Secretary may add new technical parameters to the definition of an advanced chip after publishing them and running a notice-and-comment period. That lets Commerce keep the rules current as AI hardware advances, 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 chance to buy certain advanced chips before those chips can be licensed for export to entities tied to countries of concern — with at least 15 days of public notice and a 15-business-day window to close if they step up.
American buyers competing with foreign demand
When supply is tight, leading-edge AI chips have been hard for domestic customers to secure. The bill requires sellers to give U.S. buyers pricing and terms comparable to foreign purchasers, instead of steering inventory overseas first.
Companies that qualify as a Trusted United States Person
Firms that can meet the bill's stricter standards may skip some existing export-license requirements when products go to a non-concern country and stay under their ownership and control. The trade-off: a 10% cap on concern-country ownership, tougher security, and an annual audit or attestation.
U.S. export-control and national-security officials
The bill gives Commerce a new lever over exports of top-end AI hardware, including chips classified under ECCN 3A090 and 4A090, and lets the Under Secretary add technical parameters starting 24 months after enactment as the hardware changes.
Who is affected by H.R. 5885?
Semiconductor makers and exporters
They take on a new compliance burden whenever they sell covered advanced chips or products to entities in countries of concern: a certification, a public notice period of at least 15 days, a 15-business-day window to close any U.S. purchase, and the risk of a denied license if the paperwork is incomplete.
Foreign buyers tied to countries of concern
Access to covered AI chips would tighten, because exports, reexports, and in-country transfers would require a license. The bill defines countries of concern as those in two restricted export groups, plus Hong Kong and Macau.
Multinational firms with concern-country investors
A company seeking Trusted United States Person status could be disqualified if more than 10% of its ultimate beneficial ownership is held by an entity that resides, is domiciled, or mainly operates in a country of concern. That cap may force some firms to restructure.
Federal export-control officials
The Under Secretary of Commerce for Industry and Security has to build the certification system within 120 days, approve trusted-person designations, consult the public, and write penalty rules. Officials are also barred from picking one U.S. buyer over another when multiple Americans try to exercise the right of first refusal.
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 50 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
Official Sources
The official bill page with full text, sponsors, cosponsors, and the latest committee action.
The statute this bill amends — it inserts a new section 1758A into the Export Control Reform Act's authority over export controls.
The Bureau of Industry and Security administers the export licensing system the bill would deny a license under without the required certification.
BIS's public information page on the existing controls for advanced AI chips (including ECCN 3A090) sold to China and other restricted destinations.
The BIS office that assesses emerging technologies and chip performance parameters — the basis for the bill's authority to update the advanced-chip definition after 24 months.
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 does the GAIN AI Act actually do?
It would make any company exporting the most advanced AI chips to a buyer tied to a country of concern offer those chips to U.S. customers first, at the same price and terms. Skip the certification, and Commerce denies the export license.
Which AI chips does H.R. 5885 cover?
Data-center-class hardware. The bill covers chips classified ECCN 3A090 or 4A090, or chips hitting thresholds like 4,800+ total processing performance, or 2,400+ with 1.6+ density, plus certain DRAM and interconnect bandwidth bars. Chips not designed for data centers are excluded.
How long do U.S. buyers have to claim the chips?
The seller has to post a public notice for at least 15 days. If an American buyer wants in, it gets 15 business days to take material steps to complete the purchase.
Do American buyers pay the same price as foreign buyers?
Yes. A U.S. buyer exercising the right of first refusal must get pricing and terms at parity with the foreign purchaser. The bill also bars sellers from quietly offering foreign buyers better deals than Americans.
Which countries count as countries of concern?
Nations in two restricted export groups — Country Group D:5 or E — plus Hong Kong and Macau. The license rule kicks in when the buyer is located in, headquartered in, or owned by a parent headquartered in one of those places.
What is a Trusted United States Person?
A company that meets stricter standards and can skip some existing export-license rules. To qualify, it can't have more than 10% of its ownership tied to a country of concern, must lock down physical and cyber security, keep most of its AI compute in the U.S., and pass an annual audit.
What happens if a chipmaker skips the certification?
The application gets rejected. The bill says the Under Secretary of Commerce must deny any export license that doesn't certify U.S. persons were given a right of first refusal.
Can Commerce change the rules later without Congress?
To a degree. Commerce gets 120 days after enactment to write the certification and trusted-person rules. And starting 24 months in, it can add new technical parameters to the chip 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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