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Bill

S 4883

A bill to amend the Export Control Reform Act of 2018 to increase the civil penalties that may be imposed under that Act.

119th Congress Introduced by John Neely Kennedy and 1 co-sponsor

The bill doubles penalties for ECRA violations, raising max civil fines to 1.2 million and four times the transaction value, applicable from enactment date.

Introduced in Senate
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WeVote Research Nonpartisan
Bill Summary · S 4883

Summary of Bill S.4883 (119th Congress, 2nd Session)

Purpose

  • To amend the Export Control Reform Act of 2018 (ECRA) to significantly increase the civil penalties that may be imposed for violations.

Key provisions and changes

  • Section 1760(c)(1)(A) of the Export Control Reform Act of 2018 is amended to:
    • Increase the civil penalty cap from $300,000 to $1,200,000 per violation.
    • Increase the multiplier for penalties from “twice the value of the transaction” to “four times the value of the transaction.”
  • Applicability: The higher penalties would apply to violations of the ECRA or any regulation, order, or license issued under ECRA. These penalties would apply to violations that occur on or after the date of enactment of this act.

Who or what would be affected

  • Individuals and entities liable for violations of the Export Control Reform Act of 2018 and related regulations, orders, or licenses.
  • Penalties would apply in enforcement actions brought under ECRA or associated regulatory actions beginning from the enactment date.

Procedural and timeline aspects

  • Introduced in the Senate on June 24, 2026, sponsored by Senator Kennedy (with Senator Kim as a co-sponsor).
  • The bill was read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
  • Effective date: The enhanced penalties apply to violations committed on or after the enactment date of this act.

Context and potential impact

  • The bill substantially raises the deterrent and punitive consequences for export-control violations by increasing the maximum civil penalty and the per-transaction penalty multiplier.
  • Potential effects include:
    • Stronger compliance incentives for individuals and firms engaged in activities subject to ECRA.
    • Increased risk of higher financial penalties in enforcement actions, which could impact risk assessments, compliance budgeting, and audit practices.
    • Possible broader reforms in enforcement posture if adopted, given the higher penalties available to regulators.

Note: This summary focuses on the bill’s stated provisions and potential implications based on the text provided.

Compiled from official sources — confirm details with the bill’s official record.

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