The Connected Vehicle Security Act of 2026, sponsored by Republican Sen. Bernie Moreno of Ohio and Democratic Sen. Elissa Slotkin of Michigan, had been headed toward a fast-track Senate vote before lawmakers left Washington.

That effort stalled after Republican Sen. Rand Paul of Kentucky objected to provisions that could affect companies with significant Chinese ownership, including German automaker Mercedes-Benz. The Senate will now consider the legislation after returning from the election recess in November.

Bill would turn existing restrictions into federal law

The legislation would prohibit the import, manufacture, sale, resale or introduction into interstate commerce of certain internet-connected vehicles, software and hardware associated with China and other designated foreign adversaries.

The measure would cover China, Russia, Iran and North Korea and is designed to make restrictions on connected-vehicle technology more permanent than the regulatory measures imposed by the Biden administration.

The Senate Commerce, Science and Transportation Committee approved the bill unanimously in July, sending it to the full Senate for consideration.

The legislation focuses not only on where a vehicle is manufactured but also on ownership, control and technology relationships that could connect a vehicle or its components to a designated foreign adversary.

Ownership threshold becomes central dispute

The principal unresolved issue concerns the bill’s ownership threshold.

The legislation would restrict vehicles associated with companies in which entities from China or other covered foreign adversaries hold more than a specified ownership interest. The version under Senate consideration has included a 15% threshold.

That provision raised concerns because Mercedes-Benz has significant Chinese ownership, although the Chinese stake is described as passive rather than involving operational control.

Paul argued that the legislation could unintentionally prohibit Mercedes-Benz vehicles from the U.S. market.

Moreno has said he wants the final legislation structured so that Mercedes-Benz would not be barred. Reuters reported that Moreno said the final version would contain an exemption for the German automaker.

The precise language of any exemption remains subject to negotiations.

Sponsors seek another vote in November

Moreno and Slotkin had sought unanimous Senate consent to move the bill without a conventional roll-call vote.

That procedure requires all senators to agree, allowing a single objection to prevent the measure from advancing through the proposed fast-track route.

After negotiations failed to resolve Paul’s concerns before the recess, supporters shifted their timetable to November. Reuters reported that congressional aides said the senators would seek approval after the Senate returns from its election recess.

Slotkin and Moreno had previously said they believed the bill had broad bipartisan support.

In a Sept. 24 Senate-floor statement, the two sponsors said they intended to continue working toward unanimous-consent approval.

Existing Biden restrictions already limit Chinese vehicles

The proposed law would build on restrictions established by the Biden administration.

A Commerce Department rule issued in 2025 restricted the sale or import of connected vehicles and related hardware and software linked to China and Russia, citing risks involving sensitive data and national security.

Separate U.S. tariffs also make Chinese electric vehicles substantially more expensive to import into the American market.

The Senate legislation would give the restrictions a statutory foundation, making it more difficult for a future administration to reverse them through regulatory action alone.

Bill addresses technology as well as finished vehicles

The legislation is broader than a straightforward prohibition on Chinese-made automobiles.

It would also restrict certain vehicle software and hardware connected to covered foreign adversaries. That could include technologies used in connected vehicles, autonomous-driving systems and other electronically integrated vehicle functions.

Supporters have cited the amount of information modern vehicles can collect as a national-security concern.

Slotkin has argued that connected vehicles could collect information about drivers, locations and surrounding infrastructure. Those concerns are part of the sponsors’ stated rationale for the legislation rather than a finding that Chinese vehicles currently operating in the United States have been used for espionage.

Automakers and unions have supported the measure

The bill has received support from major U.S. automotive interests and labor organizations.

The United Auto Workers, Teamsters, International Association of Machinists and Aerospace Workers, United Steelworkers and the Motor & Equipment Manufacturers Association have backed the legislation, according to Slotkin’s office.

The Alliance for Automotive Innovation has also urged Congress to establish permanent restrictions on Chinese connected vehicles, hardware and software.

The industry’s position is that a statutory restriction would provide greater certainty for manufacturers and suppliers as Chinese automakers expand internationally.

Trump position adds uncertainty

The congressional effort comes as President Donald Trump has expressed openness to some Chinese automobile investment in the United States.

Trump said in January that Chinese automakers could potentially build plants in the United States and employ American workers. He reiterated a similar position before his September meeting with Chinese President Xi Jinping.

That approach differs from the legislation’s broader effort to restrict Chinese-linked vehicle technology and manufacturers.

The White House had not taken a formal position on the legislation in the latest reporting.

The administration’s position could therefore become relevant if Congress sends a final version of the bill to the president.

China has opposed U.S. vehicle restrictions

Beijing has criticized U.S. restrictions on Chinese vehicles and technology as discriminatory.

Chinese automakers have expanded rapidly in overseas markets, particularly in electric and other new-energy vehicles. China’s new-energy vehicle exports exceeded 3.4 million units during the first eight months of 2026, according to figures cited by the Associated Press.

The expansion has increased competition for established manufacturers in Europe and other markets, while Chinese automakers remain largely excluded from the U.S. passenger-vehicle market by existing trade and regulatory barriers.

November becomes the next legislative test

The Senate delay does not terminate the bill.

Instead, it leaves the legislation unresolved until lawmakers return after the November elections. Moreno and Slotkin will need to resolve the ownership issue and obtain the procedural agreement required to move the bill through the Senate.

The House has a companion measure with more than 100 cosponsors, according to Reuters, adding another potential source of congressional support.

The final legislation could therefore differ from the version that stalled in September, particularly on how it treats companies with substantial but passive Chinese ownership.

Until the Senate acts, the existing regulatory restrictions remain the principal U.S. framework governing Chinese connected vehicles.

Reporting Credit: U.S. Senate Commerce, Science and Transportation Committee; U.S. Senators Elissa Slotkin and Bernie Moreno; U.S. Department of Commerce; U.S. Department of Transportation.

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