BIS’ Growing Workload Not Matched With More Resources, Expert Says

November 4, 2024 by Marc Selinger|Export Controls

The Bureau of Industry and Security is being asked to do more to restrict the export of dual-use items but isn’t getting a commensurate increase in funding and personnel, a technology policy expert said last week.

Since 2022, BIS has implemented new controls on exports of advanced computing chips and chipmaking equipment to China and has sought to prevent Russia from obtaining semiconductors and other dual-use goods for its war against Ukraine. But the agency’s funding has declined after accounting for inflation, creating a “major disconnect” between strategy and budgets, said Gregory Allen, director of the Wadhwani AI Center at the Center for Strategic and International Studies.

“They’re responsible for policing literally trillions of dollars in U.S. trade, and they’ve got hundreds of people doing that job,” Allen said during a CSIS event.

Biden administration officials, including Commerce Secretary Gina Raimondo (see 2312040041), have made similar arguments. The administration proposed a $31 million increase for BIS in FY 2024, but Congress denied it after key House Republicans said BIS must strengthen its export controls before they will back more money for the agency, and a House Foreign Affairs Committee report said BIS hasn't hired the right employees with its current funding (see 2403040061).

For FY 2025, the administration is seeking $223 million for BIS, up from the FY 2024 enacted level of $191 million. Although Congress hasn’t settled on a figure for FY 2025, it's on track to provide less than the requested amount, as the Senate and House Appropriations committees have proposed $206 million and $186.7 million, respectively (see 2407250044 and 2406250035).

In addition to increased funding, BIS could benefit from more help from the U.S. intelligence community, Allen said in a report released the day of the CSIS event.

"Declassified Central Intelligence Agency documents show that the intelligence community was deeply involved in assisting export control enforcement during the Cold War and delivered solid results by doing so," he wrote. "These are capabilities and priorities that have significantly atrophied in the post-Cold War era but urgently need to be restored."

Allen also wants U.S. allies to pitch in more on export controls. "Allies need to share information on best practices, align approaches, and devote appropriate resources to have a reasonable chance of success," he said.