H.R. 7604 prohibits federal agencies from contracting with software companies that are majority-owned by non-U.S. citizens for systems that handle sensitive personal information belonging to 500 or more federal employees. The bill applies to any new, renewed, or extended contracts for such "covered software systems," which include those storing Social Security numbers, medical records, or other personally identifiable information that could pose security risks if compromised. Companies bidding on federal contracts must certify under penalty of perjury that they are not internationally owned, and agencies can terminate contracts and pursue additional penalties like debarment if contractors violate these requirements or provide false certifications. The legislation does allow for case-by-case waivers if an agency head determines the waiver is necessary for national security and provides written justification to Congress within 30 days. Federal acquisition regulations must be updated within 180 days of the bill's enactment to implement these requirements.
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