[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5248 Referred in Senate (RFS)]
<DOC>
119th CONGRESS
2d Session
H. R. 5248
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
June 9, 2026
Received; read twice and referred to the Committee on Foreign Relations
_______________________________________________________________________
AN ACT
To ensure the alignment of economic and foreign policies, to position
the Department of State to reflect that economic security is national
security, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Producing Returns
and Opportunity for Investment and Trade Act of 2026'' or the ``PROFIT
Act of 2026''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; table of contents.
Sec. 2. Definitions.
Sec. 3. Under Secretary of State for Economic Growth, Energy, and the
Environment.
Sec. 4. Administration of the International Technology Security and
Innovation Fund.
Sec. 5. Assistant Secretary for Sanctions Policy.
Sec. 6. Chief Economist.
Sec. 7. Assistant Secretary for Economic and Business Affairs.
Sec. 8. Enhancing subnational diplomacy.
Sec. 9. Energy security and diplomacy.
Sec. 10. Assistant Secretary for Water, Environment, and Space Affairs.
Sec. 11. Strengthening economic expertise at the Department of State.
Sec. 12. References.
Sec. 13. Energy diplomacy.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Foreign Affairs and the
Committee on Appropriations of the House of
Representatives; and
(B) the Committee on Foreign Relations and the
Committee on Appropriations of the Senate.
(2) Department; secretary.--The terms ``Department'' and
``Secretary'' mean the Department of State and the Secretary of
State, respectively.
SEC. 3. UNDER SECRETARY OF STATE FOR ECONOMIC GROWTH, ENERGY, AND THE
ENVIRONMENT.
Section 1(b) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a(b)) is amended by--
(1) redesignating paragraphs (2) through (6) as paragraphs
(3) through (7) respectively; and
(2) by inserting after paragraph (1) the following:
``(2) Under secretary of state for economic growth, energy,
and the environment.--
``(A) Establishment.--There shall be in the
Department an Under Secretary of State for Economic
Growth, Energy, and the Environment who shall be
responsible to the Secretary.
``(B) Responsibilities.--The Under Secretary of
State for Economic Growth, Energy, and the Environment
shall maintain continuous observation and coordination
of all matters pertaining to economic and business
affairs in the conduct of foreign policy, including, as
appropriate, the following:
``(i) Preparing an annual strategic plan
for expanding opportunities for United States
private sector companies in international
markets, coordinating the use of sanctions to
achieve national security objectives, promoting
international trade and investment, developing
international policies around new and emerging
technologies, ensuring United States leadership
in science and technology, protecting natural
resources, and promoting United States energy
interests.
``(ii) Developing policies for
consideration by the Secretary to promote
economic growth, facilitate market access,
create business enabling environments abroad,
expand trade and investment opportunities for
United States companies, promote United States
energy exports and energy security, conserve
and manage economically important ecosystems
and resources, expand access to critical
minerals abroad, support United States civil
and commercial space governance, promote
international standards, policies, and best
practices for emerging technology that
facilitate United States economic growth, and
safeguard the preeminence of the United States
dollar in international markets.
``(iii) Promoting United States
international economic interests to be
addressed in the Biannual National Economic
Security Strategy Report, coordinated by the
Office of the Chief Economist.
``(iv) Attending and participating in
meetings of the National Security Council, and
National Space Council, when applicable, at the
direction of the Secretary, for matters related
to economic growth, energy, and commercial
expansion, commercial outer space affairs,
oceans, science and technology developments,
natural resource protection, and fulfill the
role of Foreign Affairs Sous Sherpa relating to
the activities of the Group of Seven Industrial
Nations (G-7).
``(v) Providing guidance to Department
personnel in the United States and overseas who
conduct or implement policies, programs, and
activities related to economic growth, energy,
and commercial expansion, science and
technology affairs, natural resource
conservation, and civil and commercial
activities in outer space.
``(vi) Coordinating activities related to
promoting economic growth, facilitating market
access, creating business enabling environments
abroad, expanding trade and investment
opportunities, promoting of energy exports,
conserving and managing economically important
ecosystems and resources, expanding access to
critical minerals, maintaining United States
leadership in science, technology, and outer
space, and safeguarding the preeminence of the
United States dollar in international markets.
``(vii) As directed by the Secretary,
representing the Department at
interdepartmental meetings including the
National Economic Council, Homeland Security
Council, Council on Environmental Quality, and
in providing policy advice to the Secretary on
matters under consideration by these groups.''.
(3) redesignating paragraphs (2) through (6) as paragraphs
(3) through (7);
SEC. 4. ADMINISTRATION OF THE INTERNATIONAL TECHNOLOGY SECURITY AND
INNOVATION FUND.
Section 102(c) of the CHIPS Act of 2022 (Public Law 117-167; 136
Stat. 1375) is amended--
(1) in paragraph (1)--
(A) by inserting ``, acting through the Under
Secretary of State for Economic Growth, Energy, and the
Environment'' after ``Secretary of State''; and
(B) by adding at the end the following: ``Within
the Department of State, the Fund shall be overseen and
administered by the Under Secretary of State for
Economic Growth, Energy, and the Environment.''.
(2) in paragraph (2)(B), by inserting ``, acting through
the Under Secretary of State for Economic Growth, Energy, and
the Environment'' after ``Secretary of State''.
SEC. 5. ASSISTANT SECRETARY FOR SANCTIONS POLICY.
Section 1 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2651a) is amended by striking subsection (l) and inserting the
following new subsection:
``(l) Assistant Secretary and Bureau for Sanctions Policy.--
``(1) Establishment.--There is authorized to be in the
Department an Assistant Secretary for Sanctions Policy, who
shall be responsible to the Under Secretary of State for
Economic Growth, Energy, and the Environment for matters
pertaining to the development of policies governing the
imposition of sanctions, in consultation with the Under
Secretary of State for International Security Affairs and the
Assistant Secretary for Arms Control and Nonproliferation as
appropriate, and such other related duties as the Secretary may
from time to time designate.
``(2) Responsibilities.--In addition to the
responsibilities described under paragraph (1), the Assistant
Secretary for Sanctions Policy shall maintain continuous
observation and coordination of all matters pertaining to the
development and implementation of sanctions policies as part of
United States diplomatic strategies in the conduct of foreign
policy, including, as appropriate, the following:
``(A) Developing the foreign policy strategy of
United States sanctions programs, including
consideration of the use of sanctions in combination
with other United States foreign policy tools and the
political and economic implications of sanction
policies.
``(B) Coordinating the effective implementation and
enforcement of sanctions, including all activities,
policies, and programs pertaining to sanctions within
the Department.
``(C) Coordinating sanctions policy with foreign
partners and allies to ensure the maximum effectiveness
of sanctions imposed by the United States and such
allies and partners.
``(D) Consulting regularly with a broad range of
stakeholders on the implications of United States
sanctions policy for United States economic interests.
``(E) Contributing to the reports to Congress
produced by the Chief Economist.
``(F) Leading the Department's efforts to identify
and designate individuals for visa sanctions related to
human rights violations.
``(G) Developing policies and programs, in
coordination with the Department of the Treasury and
other Federal departments and agencies as necessary and
with foreign partners, to combat money laundering,
terrorist financing, cybercrimes, and other illicit
financial activities.
``(H) Representing the Department in all
interagency groups or organizations within the
executive branch that plan, assess, analyze, or review
United States sanctions policies, such as interagency
groups organized under the auspices of the Department
of Treasury, the Department of Commerce, and the
Department of Homeland Security.
``(I) Performing such other duties as the Under
Secretary of State for Economic Growth, Energy, and the
Environment may from time to time designate.
``(3) Redelegation of authority.--The Secretary may
delegate, or authorize successive redelegation of, authority to
the Assistant Secretary for Sanctions Policy to act and to
render decisions, with respect to all sanctions policies
administered by the Department. Within the limitations of such
delegations, redelegations, or assignments, all official acts
and decisions by the Assistant Secretary for Sanctions Policy
shall have the same force and effect as though performed or
rendered by the Secretary.
``(4) First appointment.--On the date of the enactment of
this Act, the individual serving before such date of enactment
as the Coordinator for Sanctions shall be the Assistant
Secretary for Sanctions Policy. Any subsequent appointment of
an individual to the position of Assistant Secretary for
Sanctions Policy shall be subject to the advice and consent of
the Senate.
``(5) Establishment.--The Secretary shall establish a
Bureau of Sanctions Policy, which shall perform such functions
related to the development of policies governing the imposition
of sanctions and sanctions strategies, as the Under Secretary
of State for Economic Growth, Energy, and the Environment may
prescribe.
``(6) Assistant secretary.--The Assistant Secretary for
Sanctions Policy shall be the head of the Bureau of Sanctions
Policy.''.
SEC. 6. CHIEF ECONOMIST.
Section 1 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2651a), as amended by section 7, is further amended--
(1) by redesignating subsections (j) through (q) as
subsections (l) through (r), respectively; and
(2) by inserting after subsection (i) the following new
subsection:
``(j) Office of the Chief Economist Within the Department of State;
Chief Economist as Head of the Office; Personnel Within the Office.--
``(1) Establishment.--There is authorized to be in the
Department a Chief Economist who shall be responsible to the
Under Secretary of State for Economic Growth, Energy, and the
Environment for matters pertaining to analyzing and forecasting
the impact of economic trends on diplomatic functions and
national security priorities, and such other related duties as
the Secretary may from time to time designate.
``(2) Responsibilities.--In addition to the
responsibilities described under paragraph (1), the Chief
Economist shall provide research and analysis to inform the
Department's strategy for deploying international economic
policy to strengthen alliances, deter malign foreign actors,
and reduce dependencies on strategic rivals in the conduct of
foreign policy, including, as appropriate, the following:
``(A) Providing research and analysis to inform the
development of the Department's strategy for deploying
foreign policy to ensure supply chain resilience,
secure access to raw materials and critical minerals,
and maximize international market access.
``(B) Providing analysis of complex, emerging
geoeconomic issues and offer advice to Department
leadership on economic diplomacy challenges.
``(C) Conducting research and rigorous, data-driven
analysis of high priority issues at the intersection of
economics and foreign policy to inform decision-making
and diplomatic engagements by senior Department
officials.
``(D) Maintaining analytical products for the
Department on international economic issues, including
on sanctions evasion and the vulnerabilities of the
United States and its partners to economic coercion, as
well as the economic opportunities for United States
businesses.
``(E) Contributing to the expansion of the economic
expertise of the Department through collaboration with
the Foreign Service Institute, the academic community,
international organizations, and other Federal
departments and agencies the Chief Economist determines
necessary.
``(F) Serving as a liaison to technical experts in
economics and related fields in partner governments,
international institutions, and elsewhere in the United
States government and academic community.
``(G) Performing such other duties as the Under
Secretary of State for Economic Growth, Energy, and the
Environment may from time to time designate.
``(3) Report.--Not later than 1 year after the date of the
enactment of this subsection, and every 2 years for the
subsequent four years, the Chief Economist shall transmit to
Congress a report on the international economic strategy of the
United States and its analytical basis. In preparing the
report, the Chief Economist shall coordinate input and analysis
from other bureaus within the Under Secretary of State for
Economic Growth, Energy, and the Environment.
``(4) Office.--The Secretary shall establish an Office of
the Chief Economist, which shall perform such functions related
to the provision of expert economic advice and analysis, as the
Under Secretary of State for Economic Growth, Energy, and the
Environment may prescribe.
``(5) Chief economist.--The Chief Economist shall be the
head of the Office of the Chief Economist.
``(6) Personnel of the office of the chief economist.--
``(A) In general.--The Office of the Chief
Economist shall include--
``(i) the Chief Economist, shall be a
member of the Senior Executive Service or its
equivalent, should have a doctorate in
Economics, and at least 5 years of experience
working at the intersection of policy and
international economics in the private or
public sectors;
``(ii) not fewer than 6 and not more than
12 full-time Civil Service officers,
notwithstanding the limitations provided under
section 501 of the Foreign Service Act of 1980
(22 U.S.C. 3981), at the GS-15 level or below;
``(iii) one full-time Foreign Service
Officer, notwithstanding such limitations, at
the FS-01 level or below; and
``(iv) time-limited detailees from other
offices of the Department or of other Federal
departments or agencies, on a mutually
agreeable, non-reimbursable basis.
``(B) Contractors.--The Office of the Chief
Economist shall have maximum contracting flexibility,
including--
``(i) personal services contracting
authority authorized under section 2 of the
State Department Basic Authorities Act of 1956
(22 U.S.C. 2669), for domestic positions; and
``(ii) other transaction authority
authorized under section 701 of the Foreign
Service Act of 1980 (22 U.S.C. 4021), to adopt
innovative technology and data analytics in its
research.''.
SEC. 7. ASSISTANT SECRETARY FOR ECONOMIC AND BUSINESS AFFAIRS.
Section 1(c) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a(c)) is amended by striking paragraph (4) and inserting
the following new paragraph:
``(4) Assistant secretary and bureau for economic and
business affairs.--
``(A) Establishment.--There is authorized to be in
the Department an Assistant Secretary for Economic and
Business Affairs who shall be responsible to the Under
Secretary of State for Economic Growth, Energy, and the
Environment for matters pertaining to the trade and
investment promotion and policy, international finance
and development, transportation affairs, and such other
related duties as the Secretary may from time to time
designate.
``(B) Responsibilities.--In addition to the
responsibilities described under subparagraph (A), the
Assistant Secretary for Economic and Business Affairs
shall be responsible for leading Department policies
and programs, and coordinating with other United States
agencies as appropriate, for all matters pertaining to
the following:
``(i) Trade and investment promotion, such
as--
``(I) assisting and advocating for
United States businesses and commercial
interests overseas;
``(II) identifying foreign market
opportunities for United States
businesses and helping United States
firms overcome challenges in foreign
business climates;
``(III) helping United States
companies compete for and win contracts
in foreign markets;
``(IV) attracting foreign
investment into the United States by
identifying high potential businesses
in foreign countries;
``(V) ensuring United States
private sector concerns are integrated
into United States foreign policy and
economic policy; and
``(VI) promoting international
commercial projects that advance the
national security interests of the
United States, regardless of domestic
content thresholds.
``(ii) International trade policy,
including negotiating and implementing trade
agreements, resolving trade disputes,
bolstering supply chain resilience, and
protecting intellectual property rights.
``(iii) International investment policy,
including monitoring international investment
climates, negotiating and implementing
investment agreements, representing the
Department in the Committee on Foreign
Investment in the United States, and assisting
United States companies involved in investment
disputes with foreign governments.
``(iv) Development finance, including the
mobilization of private, bilateral, and
multilateral development finance for developing
countries, particularly investments focused on
infrastructure projects.
``(v) The negotiation and extension of debt
relief and sovereign loan guarantees for United
States allies and partners.
``(vi) The promotion of sound, transparent,
and stable economic policies overseas.
``(vii) Perform such other duties as the
Under Secretary of State for Economic Growth,
Energy, and the Environment may from time to
time designate.''.
SEC. 8. ENHANCING SUBNATIONAL DIPLOMACY.
Section 1 of the State Department Basic Authorities Act of 1956 (22
U.S.C. 2651a), as amended by section 8, is further amended by inserting
the after subsection (j) following new subsection:
``(k) Office of Subnational Diplomacy Within the Department of
State; Coordinator as Head of the Office; Location of the Office.--
``(1) Establishment.--There shall be established in the
Department an Office of Subnational Diplomacy. The Office shall
enable the Department's work with subnational governments
(State, county, city, and municipal) within the United States
to improve the ability of subnational governments to attract
foreign investment, counter foreign malign influence within the
United States, and contribute to the foreign policy priorities
of the United States.
``(2) Coordinator.--The head of the Office shall be the
Coordinator for Subnational Diplomacy. The head of the office
shall report through the Assistant Secretary for Economic and
Business Affairs to the Under Secretary of State for Economic
Growth, Energy, and the Environment.
``(3) Responsibilities.--In addition to the
responsibilities described under paragraph (1), the Coordinator
for Subnational Diplomacy shall maintain continuous observation
and coordination of all matters pertaining to subnational
diplomacy and Department engagements with subnational
governments in the conduct of foreign policy, including the
following:
``(A) Advising the Under Secretary of State for
Economic Growth, Energy, and the Environment on
subnational engagements within the United States and
serve as the principal official on such matters within
the Department.
``(B) Coordinating the Department's support for
local and municipal governments' engagements with
foreign governments.
``(C) Advising subnational government officials on
the potential risks of engagements with countries of
concern and share best practices to build resilience
against foreign political interference and malign
influence.
``(D) Assisting subnational governments in the
following areas:
``(i) Attracting or bidding to host major
international events.
``(ii) Tracking foreign direct investment
at the county and municipal levels to highlight
trends and opportunities.
``(iii) Attracting foreign direct
investment and other forms of economic
cooperation.
``(iv) Building the capacity and knowledge
of subnational government staff who have
responsibility for engaging with foreign
countries.
``(v) Advancing sports diplomacy with
foreign countries and entities.
``(vi) Implementing programs to cooperate
with foreign governments and entities on policy
priorities or managing shared resources.
``(vii) Understanding the local
implications of foreign policy developments or
policy changes.
``(E) Supporting the economic interests of the
United States through subnational engagements, in
consultation and coordination with other relevant
agencies.
``(F) Advising and informing local officials as
they negotiate agreements and memoranda of
understanding with foreign governments related to
subnational engagements and priorities.
``(G) Coordinating subnational engagements with
associations of subnational elected leaders, including
the United States Conference of Mayors, National
Governors Association, National League of Cities and
similar associations.
``(H) Performing other such duties as the Assistant
Secretary for Economic and Business Affairs and the
Under Secretary of State for Economic Growth, Energy,
and the Environment may from time to time designate.
``(4) Location.--The Office of Subnational Diplomacy shall
be co-located with the Office of Foreign Missions--Los Angeles,
authorized under section 203(4) of the State Department Basic
Authorities Act of 1956 (22 U.S.C. 4303(4)).''.
SEC. 9. ENERGY SECURITY AND DIPLOMACY.
Section 1(c) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a(c)), as amended by section 9, is further amended--
(1) by redesignating paragraphs (8) through (17) as (9)
through (18), respectively; and
(2) by inserting after paragraph (7) the following:
``(8) Assistant secretary and bureau for energy security
and diplomacy.--
``(A) Establishment.--There is authorized to be in
the Department an Assistant Secretary for Energy
Security and Diplomacy who shall be responsible to the
Under Secretary of State for Economic Growth, Energy,
and the Environment for all matters pertaining to the
formulation and implementation of international energy,
energy technology, critical minerals, and relevant
supply chain policies in the conduct of foreign policy
by the Department, including, as appropriate, to
protect United States energy security interests, lead
the coordination of energy programs carried out by
United States Government agencies abroad, and such
other related duties as the Secretary may from time to
time designate.
``(B) Responsibilities.--In addition to the
responsibilities described under subparagraph (A), the
Assistant Secretary for Energy Security and Diplomacy
shall maintain continuous observation and coordination
of all matters pertaining to the development of
policies to secure access to international energy
markets and diversify critical mineral supply chains in
the conduct of foreign policy, including, as
appropriate, the following:
``(i) Representing the Secretary in
interagency efforts to develop the
international energy policy of the United
States.
``(ii) Leading the analysis, formulation,
and implementation of international policies
aimed at protecting and advancing United States
energy interests.
``(iii) Effectively managing United States
bilateral and multilateral relations and, as
directed by the Secretary, representing the
Secretary in relevant international fora and
organizations, including the International
Energy Agency, to bolster global energy
security and advance the interests of the
United States.
``(iv) Ensuring that analyses of the
national security and economic security
implications of global energy developments are
reflected in the decision-making processes
within the Department.
``(v) Incorporating energy and critical
mineral security priorities into the activities
of the Department.
``(vi) Coordinating energy activities of
the Department with relevant Federal
departments and agencies, including the
Departments of Energy, Commerce, Defense, and
Interior, and the Development Finance
Corporation to promote United States energy
security and energy development to support
United States national security readiness.
``(vii) Coordinating with the Bureau of
Sanctions Policy on economic sanctions
pertaining to the international energy sector.
``(viii) Coordinating energy security and
other relevant functions within the Department
currently undertaken by--
``(I) the Bureau of Economic and
Business Affairs;
``(II) the Bureau of Water,
Environment, and Space Affairs;
``(III) the Bureau of Arms Control
and Nonproliferation; and
``(IV) other bureaus and offices
within the Department.
``(ix) Working internationally to--
``(I) support the development of
energy technologies, natural resources,
critical minerals, and supply chains
for the benefit of the United States
and United States allies and trading
partners for their energy security and
economic development needs;
``(II) promote secure and
diversified energy and critical
minerals supply chains, and a well-
functioning global market for energy
resources, energy technologies,
critical minerals;
``(III) resolve international
disputes regarding the exploration,
development, production, or
distribution of energy and critical
minerals resources where the United
States strategic interests are present;
``(IV) support the economic and
commercial interests of United States
persons operating in the energy markets
of foreign countries; and
``(V) support and coordinate
international efforts to alleviate
energy poverty, enhance energy access
and energy efficiency to promote United
States strategic interests and offer
alternatives to adversary initiatives
for United States allies and partners.
``(x) Conducting public diplomacy with
regard to United States international energy
policy to strengthen transparency and
governance.
``(xi) Performing such other duties as the
Under Secretary of State for Economic Growth,
Energy, and the Environment may from time to
time designate.
``(C) Annual report.--Not later than 1 year after
the date of the enactment of this paragraph, and
annually thereafter for three years, the Assistant
Secretary for Energy Security and Diplomacy shall
submit to Congress a report on the United States
international energy strategy.
``(D) Bureau.--The Secretary shall establish a
Bureau of Energy Security and Diplomacy, which shall
perform such functions related to the formulation and
implementation of international energy, energy
technology, critical minerals, and relevant supply
chain policies, as the Under Secretary of State for
Economic Growth, Energy, and the Environment may
prescribe.
``(E) Assistant secretary.--The Assistant Secretary
for Energy Security and Diplomacy shall be the head of
the Bureau of Energy Security and Diplomacy.''.
SEC. 10. ASSISTANT SECRETARY FOR WATER, ENVIRONMENT, AND SPACE AFFAIRS.
Section 1(c) of the State Department Basic Authorities Act of 1956
(22 U.S.C. 2651a(c)), as amended by section 11, is further amended by
adding at the end the following:
``(19) Bureau of water, environment, and space affairs
within department of state; assistant secretary of state as
head of bureau.--
``(A) Establishment.--There is authorized to be in
the Department an Assistant Secretary for Water,
Environment, and Space Affairs who shall be responsible
to the Under Secretary of State for Economic Growth,
Energy, and the Environment for matters pertaining to
space, oceans, polar affairs, environmental quality,
freshwater, fisheries, wildlife and wildlife
trafficking, conservation, and such other related
duties as the Secretary may from time to time
designate.
``(B) Responsibilities.--In addition to the
responsibilities described under subsection (a), the
Assistant Secretary for Water, Environment, and Space
Affairs shall maintain continuous observation and
coordination of all matters pertaining to oceans,
fisheries, natural resource conservation, and outer
space in the conduct of foreign policy, including, as
appropriate, the following:
``(i) Developing United States policy on
global environmental security issues with
respect to oceans, fisheries, Antarctic region,
waste and global pollution, and natural
resource management and conservation, including
water.
``(ii) Representing the Department in
bilateral and multilateral negotiations
involving the law of the sea, including freedom
of navigation and overflight and other lawful
uses of the ocean; maritime security; United
States maritime zones, including the United
States extended continental shelf; marine
science; sustainable management and protection
of marine habitats and resources; marine
pollution; and maritime claims and boundaries.
``(iii) Leading United States engagement on
Antarctica and in international oceans
agreements and conventions with foreign
governments and international organizations to
promote solutions that advance United States
national security, economic, and environmental
interests.
``(iv) Coordinating the development of
policies and programs to conserve and manage
economically important ecosystems, including,
forests, wetlands, drylands, and coral reefs.
``(v) Developing policies and programs to
address international threats to natural
resources including but not limited to illicit
trade; illegal, unreported and unregulated
fishing; wildlife trafficking; and illegal
logging and associated trade.
``(vi) Developing and implementing United
States foreign policy related to air, water and
soil pollution and risks to human health and
the environment caused by the transboundary
movement of hazardous chemicals and waste and
other forms of pollution to promote
environmental security with trade partners and
in multilateral institutions.
``(vii) Representing the Department in
bilateral and multilateral engagements
including organizations, institutions, and
negotiation of international agreements on
related issues.
``(viii) Developing policies and programs,
in coordination with the National Aeronautics
and Space Administration, the Department of
Commerce, and other relevant Federal
departments and agencies, as appropriate, to
support partnerships between the United States
and international and private industry partners
in the development of infrastructure and
policies that expand economic growth in outer
space, including--
``(I) countering malign efforts by
foreign adversaries and other actors
that threaten United States interests
in civil and commercial space;
``(II) expanding access to foreign
markets for United States commercial
industry, including by encouraging
reforms that reduce barriers to trade
and cooperation with United States
civil and commercial space actors; and
``(III) providing assistance to
foreign governments and organizations,
including national, regional, and
international institutions, on such
terms and conditions as the Secretary
may determine.
``(ix) Leading bilateral and multilateral
engagements related to civil and commercial
space activities, resilient space services,
burden sharing, and other matters related to
international space law and diplomacy and other
United States international obligations and
commitments.
``(x) In accordance with the National Space
Policy, leading United States Government
engagement with international Global Navigation
Satellite Systems providers to ensure
compatibility and encourage interoperability of
civil global navigation satellite services
based on United States-based global positioning
systems, including through the International
Committee on Global Navigation Satellite
Systems.
``(xi) Leading Department efforts to
implement international arrangements and
promote cooperation on Earth observation
satellite systems.
``(xii) Leading Department engagement in
multilateral and bilateral forums on
international space policy, space law, and
commercial and civil treaties or agreements.
``(xiii) Leading Department efforts on
transparency in space by maintaining the
official United States space object registry
and promoting best practices for safe
operations in space, preservation of the space
environment, space traffic coordination, and
space situational awareness.
``(xiv) Leading Department efforts to align
foreign space law, regulatory, and policy
frameworks with United States-endorsed models,
approaches, and best practices.
``(xv) Performing such other duties as the
Under Secretary of State for Economic Growth,
Energy, and the Environment may from time to
time designate.
``(C) First appointment.--On the date of the
enactment of this Act, the individual serving as the
Assistant Secretary for Oceans and International
Environmental and Scientific Affairs on the day before
such date of enactment shall be the Assistant Secretary
for Water, Environment, and Space Affairs. Any
subsequent appointment of an individual to the position
of Assistant Secretary for Water, Environment, and
Space Affairs shall be subject to the advice and
consent of the Senate.
``(D) Bureau.--The Secretary shall establish a
Bureau of Water, Environment, and Space Affairs, which
shall perform such functions related to space, oceans,
environmental quality, fisheries, wildlife, and
wildlife trafficking, and conservation affairs, as the
Under Secretary of State for Economic Growth, Energy,
and the Environment may prescribe.
``(E) Assistant secretary.--The Assistant Secretary
for Water, Environment, and Space Affairs shall be the
head of the Bureau of Water, Environment, and Space
Affairs.''.
SEC. 11. STRENGTHENING ECONOMIC EXPERTISE AT THE DEPARTMENT OF STATE.
(a) Office Directors and Deputy Directors.--Notwithstanding the
requirements of section 501 of the Foreign Service Act of 1980 (22
U.S.C. 3981), the positions of Office Director and Deputy Office
Director, as well as special assistant positions, under the purview of
the Under Secretary of State for Economic Growth, Energy, and the
Environment, shall generally be filled by civil service officers.
(b) Implementation.--The Secretary is authorized to take such steps
as may be necessary to phase-in the requirement under subsection (a)
over the 5-year period beginning on the date of the enactment of this
Act.
(c) Exceptions.--The Under Secretary of State for Economic Growth,
Energy, and the Environment may approve the appointment of a Foreign
Service officer to an Office Director or a Deputy Office Director
position if--
(1) the individual has the requisite expertise, as
determined by the Under Secretary of State for Economic Growth,
Energy, and the Environment; and
(2) in the 5-year period following the date of the
enactment of this Act, not more than one-third of all Office
Director and Deputy Office Director positions under the purview
of the Under Secretary of State for Economic Growth, Energy,
and the Environment are filled by Foreign Service officers.
(d) Direct Hire Authority.--
(1) In general.--The Under Secretary of State for Economic
Growth, Energy, and the Environment may appoint, without regard
to the provisions of sections 3309 through 3318 of title 5,
United States Code, candidates directly to positions in the
competitive service, as defined in section 2102 of that title.
(2) Termination.--Except with respect to the Office of the
Chief Economist, the authority provided under paragraph (1)
shall terminate on the date that is 4 years after the date of
the enactment of this Act.
(e) Report.--Not later than 180 days after the date of the
enactment of this Act, the Under Secretary of State for Economic
Growth, Energy, and the Environment shall submit to the appropriate
committees of Congress a report that contains plans to attract and
retain economic, policy, legal, and technical expertise for civil
service officers in the Under Secretary of State for Economic Growth,
Energy, and the Environment, including career promotion tracks to
supervisory and non-supervisory GS-15 positions.
SEC. 12. REFERENCES.
Any reference in any statute, reorganization plan, Executive order,
regulation, agreement, determination, or other official document or
proceeding to--
(1) the Assistant Secretary for Oceans and International
Environmental and Scientific Affairs shall be deemed to refer
to the Assistant Secretary for Water, Environment, and Space
Affairs;
(2) the Bureau for Oceans and International Environmental
and Scientific Affairs shall be deemed to refer to the Bureau
for Water, Environment, and Space Affairs;
(3) the Sanctions Coordinator shall be deemed to refer to
the Assistant Secretary for Sanctions Policy; and
(4) the Office of the Sanctions Coordinator shall be deemed
to refer to the Bureau of Sanctions Policy.
SEC. 13. ENERGY DIPLOMACY.
Section 931 of the Energy Independence and Security Act of 2007 (42
U.S.C. 17371) is amended to read as follows:
``SEC. 931. ENERGY DIPLOMACY AND SECURITY WITHIN THE DEPARTMENT OF
STATE.
``The Secretary of Energy may make appropriate arrangements with
the Secretary of State to assign personnel from the Department of
Energy or the National Laboratories of the Department of Energy to
serve as dedicated advisors on energy matters in embassies of the
United States or other United States diplomatic missions.''.
Passed the House of Representatives June 8, 2026.
Attest:
KEVIN F. MCCUMBER,
Clerk.