S. 3249, Strategic Subsea Cables Act of 2026

Bill Summary

S. 3249 would direct the Administration to protect the global network of undersea fiber-optic cables and other critical undersea infrastructure by:

• Imposing sanctions on foreign persons who sabotage critical undersea infrastructure,
• Assigning 10 full-time employees to support the Department of State’s enhanced efforts to protect undersea infrastructure,
• Establishing an interagency committee to lead the government’s efforts to protect and improve the resilience of undersea infrastructure, and
• Providing the Congress with several reports concerning sanctions imposed under the bill and other actions the Administration takes to implement the bill.

Estimated Federal Cost

The estimated budgetary effects of S. 3249 are shown in Table 1. The costs of the legislation fall within budget function 150 (international affairs).

Basis of Estimate

For this estimate, CBO assumes that the legislation will be enacted in fiscal year 2026, that the Department of State will assign or hire the required employees over a two-year period, and that the interagency committee will begin operating in fiscal year 2027.

Spending Subject to Appropriation

CBO estimates that satisfying the bill’s requirements to assign personnel, establish an interagency committee, and issue reports would cost $22 million over the 2026-2031 period (see Table 1). Such spending would be subject to the availability of appropriated funds.

Department of State Personnel. The bill would require the Secretary of State to assign at least 10 full-time equivalent positions (FTEs) to work on the department’s efforts to protect undersea infrastructure. On the basis of data from the Office of Personnel Management about the General Schedule grade distribution of the Department of State’s workforce, federal employee salaries, and federal employee benefits, and on information from the Office of Management and Budget about operations and support costs, CBO estimates that implementing that requirement would cost $12 million over the 2026‑2031 period.

Interagency Committee. The bill would require the President to establish an interagency committee to lead the government’s efforts to protect undersea infrastructure and facilitate licensing and permitting for undersea communication infrastructure. The agencies involved in the committee would coordinate with other stakeholders in the undersea infrastructure industry and share with the private sector information about sabotage of undersea infrastructure. On the basis of information about similar government committees, CBO expects that the agencies would collectively assign four FTEs to the committee’s activities, and that those staff would cost $5 million over the 2026-2031 period.

Reports. The bill would require the Administration to provide several reports to the Congress:

• An annual report for six years from the Secretary of State about U.S. engagement with international institutions aimed at protecting undersea infrastructure,
• An annual report for six years from the Secretary of State about the activities and capabilities of the People’s Republic of China and the Russian Federation concerning undersea infrastructure,
• An annual report for six years from the Secretary of State about U.S. efforts to work with international allies and partners to improve the security of undersea infrastructure,
• A report from the Secretary of State about U.S. plans to improve information sharing with international allies and partners about sabotage of undersea infrastructure,
• Periodic reports from the President about sanctions imposed under the bill,
• A report from the President about the plans for and the staff required by the interagency committee established under the bill,
• A report from the Director of National Intelligence (DNI) about recent instances of reported sabotage of undersea infrastructure,
• A report from the DNI about procedures developed to enable the federal government to share information with the private sector about the risk of sabotage to undersea infrastructure, and
• An annual report for six years from the DNI about the implementation of the data-sharing procedures required under the bill.

On the basis of information about the cost of similar reporting requirements, CBO expects that providing the reports would cost $5 million over the 2026-2031 period.

Direct Spending and Revenues

S. 3249 would require the Administration to impose sanctions on foreign persons who knowingly sabotage or facilitate the sabotage of critical undersea infrastructure.

Under current law, the Administration can sanction foreign persons who disrupt international security. If the enactment of S. 3249 leads the Administration to broaden the application of those sanctions, additional persons would be subject to sanctions. More people would be denied visas by the Department of State, resulting in an insignificant decrease in revenues from fees. Although most visa fees are retained by the Department of State and spent, some collections are deposited into the Treasury as revenues. Denying foreign nationals entry into the United States also would reduce direct spending on federal benefits (emergency Medicaid or federal subsidies for health insurance, for example) for which those people might otherwise be eligible.

In addition, if sanctions were applied more broadly under the bill, more transactions involving certain assets either in the United States or under the control of people or entities in the United States would be blocked. People who violate those sanctions would be subject to civil or criminal monetary penalties. Those penalties are recorded as revenues, and a portion can be spent without further appropriation.

On the basis of data about similar sanctions, CBO estimates that any additional sanctions imposed under the bill would affect a small number of people. Thus, enacting S. 3249 would increase revenues and direct spending by insignificant amounts, and would, on net, reduce deficits by less than $500,000 over the 2026-2036 period.

Pay-As-You-Go Considerations

The Statutory Pay-As-You-Go Act of 2010 establishes budget-reporting and enforcement procedures for legislation affecting direct spending or revenues. CBO estimates that enacting the bill would increase direct spending and revenues by less than $500,000 over the 2026‑2036 period.

Increase in Long-Term Net Direct Spending and Deficits

CBO estimates that enacting S. 3249 would not significantly increase net direct spending in any of the four consecutive 10-year periods beginning in 2037.

CBO estimates that enacting S. 3249 would not increase on-budget deficits in any of the four consecutive 10-year periods beginning in 2037.

Mandates

S. 3249 would impose a private-sector mandate as defined in the Unfunded Mandates Reform Act (UMRA) by expanding the scope of authority for the Administration to regulate transactions between entities in the United States and foreign entities who would be subject to sanctions under the bill. That expansion would result in additional burdens on individuals and entities, such as banks, in the United States that are required to monitor and report on foreign transactions and to block access to certain assets owned by sanctioned entities. The bill also would prohibit transactions between entities in the United States and sanctioned parties that otherwise would be permitted under current law.

The cost of the mandate would be any income or profit lost as a result of the bill’s enactment. CBO expects that because a small number of people or entities would be affected, the loss of income from any incremental increase in restrictions imposed by the bill would be small as well. CBO estimates that the cost of the mandate would fall well below the annual threshold established in UMRA for private-sector mandates ($214 million in 2026, adjusted annually for inflation).

S. 3249 contains no intergovernmental mandates as defined in UMRA.

Estimate Prepared By

Federal Costs: David Rafferty

Mandates: Lucy Marret

Estimate Reviewed By

David Newman
Chief, Defense, International Affairs, and Veterans’ Affairs Cost Estimates Unit

Kathleen FitzGerald
Chief, Public and Private Mandates Unit

Christina Hawley Anthony
Deputy Director of Budget Analysis

Estimate Approved By