Banks Secures AI OVERWATCH Act in Senate NDAA

WASHINGTON, D.C. - Senator Jim Banks (R-Ind.) secured the inclusion of his AI OVERWATCH Act in the Fiscal Year 2027 National Defense Authorization Act (NDAA), ensuring that the chips powering the next generation of artificial intelligence strengthen American innovation and national security.

The AI OVERWATCH Act codifies President Trump's restrictions on exports of the most advanced AI Chips to foreign adversaries.

Sen. Jim Banks (R-Ind.): "We are in an AI race with the Chinese Communist Party that's powered by the advanced chips, and the winner will determine the future of global military superiority. I'm leading the AI OVERWATCH Act to reinforce President Trump's policy and ensure continued American AI dominance."

Key Provisions of the AI OVERWATCH Act:

• Affirms President Trump's policy to prohibit exports of the most advanced AI chips to countries of concern and extends it for 18 months, ensuring America's most powerful AI technology does not strengthen America's adversaries.

• Requires the Commerce Department to certify to Congress that exports of advanced AI chips will not undermine U.S. supply or divert global foundry capacity, violate existing end user or use controls, or facilitate remote access by unauthorized parties before approving export licenses for less advanced AI chips.

• Requires the Commerce Department to issue licenses before advanced AI chips can be exported, reexported, or transferred to countries of concern, prohibiting blanket approvals for exports.

• Directs the Commerce Department to develop an American Artificial Intelligence Victory Strategy outlining a whole-of-government plan to win the AI race against Communist China.

Background:

Last year, Senator Jim Banks' GAIN AI Act passed the Senate. This America-first proposal ensured advanced AI chips are made available to American companies before they can be exported to China or other foreign adversaries. The core principles of GAIN AI were incorporated into the Trump Administration's H200 Rule, published in January 2026.

The AI OVERWATCH Act builds on those efforts by codifying the Trump Administration's current export controls on advanced AI chips contained in the H200 rule.

Full bill text can be found here.

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