The U.S. Senate on May 20 approved bipartisan legislation led by U.S. Sen. Mike Rounds (R-SD) to create a whistleblower incentive program focused on curbing illegal exports of semiconductors, and has sent the measure to the U.S. House of Representatives for consideration.
“I look forward to working with our colleagues in the House to get this important legislation through Congress and to President Trump’s desk to be signed into law,” said Sen. Rounds, who in April 2025 sponsored the Stop Stealing our Chips Act, S. 1473, alongside lead cosponsor U.S. Sen. Mark Warner (D-VA).
If enacted, the bill would amend the Export Control Reform Act to create a whistleblower incentive program at the U.S. Commerce Department’s Bureau of Industry and Security (BIS) designed to increase reporting of illegal exports and to prevent the smuggling of American-made semiconductors into China.
“I am pleased that the Stop Stealing our Chips Act has passed the Senate,” Sen. Rounds said. “The United States has taken extensive measures to prevent American-made semiconductors from falling into the wrong hands, particularly China; however, China continues to smuggle these chips into their country.”
As the use of artificial intelligence (AI) continues to accelerate, he pointed out that this creates “a grave national security concern.”
“Our legislation would strengthen BIS’s export control enforcement by rewarding whistleblowers with credible information on illegal actions to come forward,” said Sen. Rounds.
The legislation would require BIS to create a public, secure platform for submitting whistleblower reports; establish a fund, financed by fines collected from export control violations, to cover whistleblower rewards and program operations; and provide confidentiality guarantees and anti-retaliation safeguards to protect whistleblowers, according to a bill summary provided by Sen. Rounds’ staff.
Under the bill, whistleblowers providing original information leading to fines against violators could receive 10 percent to 30 percent of collected fines, with exceptions for known terrorists and criminals, as well as federal employees acting within the scope of their duties.
Reports deemed credible must lead to formal investigations within 60 days, with whistleblowers receiving status updates every 30 days. Any remaining funds from fines would be returned to the U.S. Treasury Department, the summary says.