Both the public and private sectors should anticipate major industrial shakeups as states move to prohibit contracting with companies linked to certain foreign adversaries. Legislative bans on international contracts are intended to mitigate and prevent cybersecurity threats to state services, critical infrastructure, economic espionage and national security.
These bans extend to protect state agencies, public institutions and residents from having private data stolen and essential systems infiltrated. The states tend to align their policies and standards with federal lists of known foreign adversaries, including the People’s Republic of China, Russia, Iran, North Korea, Cuba and Venezuela.
In an effort to protect state interests, Texas passed multiple executive orders in November 2024 designed to improve state security by preventing state agencies and public institutions from forming partnerships or contracts with companies connected to countries demonstrated to be long-term threats to both state and national security.
Executive Order 48 was established to harden state government, locking down current and future contracting and procurement efforts. Measures include requiring companies to certify that they are not linked to foreign adversaries and prohibiting contracts with noncompliant companies unless they are essential for operations. The executive order also prohibits accepting gifts from foreign adversaries, mandates regular reviews of relevant international connections and cancels public institution faculty participation in foreign recruitment programs.
Executive Order 49, created in response to the FBI’s warning about attacks targeting infrastructure vulnerabilities, is designed to protect critical infrastructure from foreign threats. The state created the Texas Division of Emergency Management to identify vulnerabilities in various sectors and recommend solutions.
Additional efforts include alternating focus on vulnerable sectors to improve readiness each year, developing emergency planning procedures for electromagnetic threats and identifying resources for developing plans. The Electricity Reliability Council of Texas has also been directed to create a secure communication channel for critical grid incidents operational by June 30, 2025.
Other states implementing similar security initiatives include:
- Florida has enacted laws to prevent contracts with companies connected to foreign adversaries, banned select technologies from government devices and restricted certain entities from buying agricultural land to prevent data privacy, cybersecurity and foreign influence threats.
- Georgia is prioritizing restrictions on state contracts in the telecommunications and technology sectors. The state has also implemented cybersecurity measures to harden agencies from potential breaches.
- Arizona has implemented similar measures to Georgia, focusing on protections in the telecommunications and technology sectors. Additional efforts have been taken to limit the use of foreign-made drones in state agencies.
- Indiana is restricting contracts with select foreign-based companies in the technology sector.
- Montana has banned technologies and applications tied to foreign adversaries on government devices.
(Photo courtesy of aymanejed.)
