Why it Matters

The House Foreign Affairs Committee is set to mark up a package of foreign policy legislation on May 13, covering measures on national security, artificial intelligence, and U.S. military partnerships abroad. It arrives as Congress is racing to tighten export controls on advanced AI chips before adversaries exploit gaps in existing law, and the committee's chairman has just introduced new legislation to expand America's ability to arm its allies through loans rather than grants.

The bills moving through this markup could reshape how the U.S. controls the flow of cutting-edge semiconductor technology to China, how aggressively federal agencies enforce existing export laws, and how the State Department finances weapons transfers to partners in an era of stretched defense budgets.

The Legislative Push Behind the Markup

The committee has held a series of markups in 2026 focused on export controls and AI hardware. An April 22 markup advanced measures to strengthen enforcement at the Bureau of Industry and Security, including legislation to increase the number of export control officers stationed internationally, and to raise civil penalties for violations. The committee has also advanced the MATCH Act, which aims at coordinating export controls on AI hardware with allied nations, and the Chip Security Act, which targets the illicit smuggling of advanced AI chips to foreign adversaries.

On May 6, just one week before the scheduled markup, committee chairman Brian Mast (R-FL) introduced the Foreign Military Financing Loan Authorization Act of 2026, which would expand the State Department's authority to provide foreign military financing through loans, rather than traditional grants. The proximity of that introduction to this markup suggests it could be among the measures under consideration.

Industry Has Been Watching Closely

Advanced Micro Devices has been among the most active, disclosing lobbying on the Chip Security Act, AI diffusion policy, and export control rule changes across multiple filings totaling more than $2 million in recent quarters. The company's filings specifically reference S.1705/H.R. 3447, the Chip Security Act, alongside broader concerns about AI hardware export restrictions.

TSMC Arizona Corp. has also disclosed lobbying on the Chip Security Act and export control measures on AI hardware, as has AI Policy Network Inc., which specifically flagged H.R. 4505 (the Export Controls Enforcement Act) and H.R. 7003 (the BIS STRENGTH Act) in its first quarter 2026 filing.

Semiconductor equipment makers have been particularly focused on U.S.-China trade dynamics. KLA Corp. disclosed more than $1 million in lobbying over the past year specifically on "trade policy regarding China, including tariffs and export controls on semiconductor manufacturing equipment for advanced models." ASML US LLC similarly flagged export control policies affecting chip production across multiple quarters.

On the defense side, Shield AI Inc. has spent $1.4 million lobbying on the National Defense Authorization Act, foreign military sales, and issues around autonomy and artificial intelligence. Colt's Manufacturing Co. has filed disclosures each quarter specifically referencing foreign military and direct commercial sales of weapons before the House and Senate Foreign Relations Committees.

The Policy Stakes

The Foreign Affairs Committee markup comes as the administration and Congress are reassessing how tightly to control the export of advanced AI hardware, particularly to China. Critics of existing controls have argued they disadvantage American companies without meaningfully slowing adversaries, while proponents contend that enforcement gaps have allowed advanced chips to reach restricted destinations through third-party routes.

The Chip Security Act, which has attracted lobbying attention from chipmakers and national security-focused advocacy groups alike, is designed to address one piece of that puzzle by specifically targeting smuggling. The MATCH Act takes a different approach, seeking to coordinate controls multilaterally with allies to prevent circumvention through allied nations.

The foreign military financing question carries its own set of stakes. Shifting from grants to loans could allow the U.S. to arm more partners with less direct budgetary exposure, but critics have raised concerns about whether loan structures create unsustainable debt burdens for smaller allied nations.

The markup is a full-committee proceeding, bringing together members with widely divergent views on U.S. foreign policy and trade. It is chaired by Brian Mast (R-FL), with Gregory Meeks (D-NY) serving as Ranking Member. Darrell Issa (R-CA) serves as Vice Chair, with Gabe Amo Jr. (D-RI) as Vice Ranking Member. The hearing is scheduled for May 13 at 2:00 p.m. at 2172 Rayburn House Office Building

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