Legislation modeled in the Biosecure Act advanced in the 2026 National Defense Authorization Act, putting a congressional structure in place to bar certain federal funds from flowing to foreign biotech firms deemed security risks. The revised approach ties prohibitions to the Department of Defense’s 1260H list rather than naming specific companies and introduces phased compliance timelines. Stakeholders warn the measure could disrupt procurement and grant subcontracts while legal advisers note implementation complexity. The change reflects bipartisan momentum to secure biotech supply chains and genomic data, but companies with China ties and vendors to federal programs will need to audit vendors and prepare wind‑down or mitigation plans.