Technical corrections only. The diff reflects the bill's procedural transition from being engrossed in the House to being referred to the Senate, including updated legislative status and the addition of the Clerk's name. No substantive policy changes were made to the bill text.
PROFIT Act of 2026
- Sponsor
- Rep. Kim, Young [R-CA-40]
- Committees
- Foreign Relations Committee (primary)
- Last action
- Jun 9, 2026
Bottom line
The PROFIT Act of 2026 aims to integrate economic and energy security more deeply into U.S. foreign policy by restructuring key State Department roles and functions.
What it actually does
This bill, known as the PROFIT Act of 2026, reorganizes the Department of State to enhance its focus on economic and energy security as core components of U.S. foreign policy. It establishes several new high-level positions and bureaus, including an Under Secretary of State for Economic Growth, Energy, and the Environment, an Assistant Secretary for Sanctions Policy, and a Chief Economist. The legislation also strengthens subnational diplomacy efforts and mandates a shift towards civil service officers for certain economic-related roles within the Department.
Proponents argue
Proponents argue that the bill is crucial for aligning U.S. economic and foreign policies, recognizing that economic security is integral to national security. They contend it will enhance the Department of State's capacity to promote U.S. private sector interests, counter malign foreign economic influence, and secure critical supply chains, ultimately strengthening U.S. leadership globally and ensuring the preeminence of the U.S. dollar.
Opponents contend
Opponents might argue that this reorganization could lead to bureaucratic bloat, overlap with existing agencies, or dilute the traditional diplomatic focus of the State Department. Concerns could also be raised about the potential for politicization of economic roles or the cost of establishing new high-level positions and bureaus without clear, measurable benefits or a detailed fiscal impact analysis.
The bill is relatively short and clearly structured, making it accessible for a quick but thorough review, though its implications for the State Department's structure and mission are broad.
Sec. 3
Under Secretary of State for Economic Growth, Energy, and the Environment
This section establishes a new Under Secretary position within the Department of State, responsible for overseeing and coordinating all matters related to economic and business affairs, energy, and the environment in foreign policy. This includes developing strategic plans for expanding U.S. private sector opportunities, coordinating sanctions, promoting trade and investment, and ensuring U.S. leadership in science, technology, and space.
Supporters argue
Supporters argue this position is essential to elevate economic and energy security to the highest levels of foreign policy, ensuring these critical areas receive dedicated leadership and coordination across the Department.
Critics contend
Critics may contend that creating another Under Secretary position could lead to bureaucratic bloat or overlap with existing roles, potentially complicating rather than streamlining foreign policy efforts.
Tradeoffs
The provision balances the need for focused leadership on economic and energy issues with the potential for increased bureaucratic complexity and the integration challenges of a new, broad portfolio.
Sec. 4
Administration of the International Technology Security and Innovation Fund
This section amends the CHIPS Act of 2022 to explicitly place the oversight and administration of the International Technology Security and Innovation Fund within the Department of State under the new Under Secretary of State for Economic Growth, Energy, and the Environment. This centralizes the management of this fund, which is intended to promote secure and resilient supply chains for semiconductors and other critical technologies.
Sec. 5
Assistant Secretary for Sanctions Policy
This section establishes an Assistant Secretary for Sanctions Policy and a Bureau of Sanctions Policy within the Department of State, reporting to the Under Secretary for Economic Growth, Energy, and the Environment. This new role is responsible for developing, coordinating, and implementing U.S. sanctions policies as part of diplomatic strategies, consulting with stakeholders, and combating illicit financial activities. The current Coordinator for Sanctions will transition into this new Assistant Secretary role.
Sec. 6
Chief Economist and Office of the Chief Economist
This section authorizes the establishment of a Chief Economist position and an Office of the Chief Economist within the Department of State, reporting to the Under Secretary for Economic Growth, Energy, and the Environment. The Chief Economist will provide research and data-driven analysis on geoeconomic issues, inform strategies for supply chain resilience, critical mineral access, and market access, and serve as a liaison to economic experts. The office will have specific personnel requirements and flexible contracting authority.
Sec. 7
Assistant Secretary for Economic and Business Affairs
This section amends existing law to redefine the responsibilities of the Assistant Secretary for Economic and Business Affairs, placing them under the new Under Secretary for Economic Growth, Energy, and the Environment. The Assistant Secretary will lead Department policies and programs related to trade and investment promotion, international trade and investment policy, development finance, debt relief, and promoting sound economic policies overseas, with a specific focus on assisting U.S. businesses and attracting foreign investment.
Sec. 8
Enhancing Subnational Diplomacy
This section establishes an Office of Subnational Diplomacy within the Department of State, headed by a Coordinator who reports through the Assistant Secretary for Economic and Business Affairs to the Under Secretary for Economic Growth, Energy, and the Environment. The office will enable the Department to work with U.S. state, county, city, and municipal governments to attract foreign investment, counter foreign malign influence, and align local efforts with U.S. foreign policy priorities. It will also assist subnational governments with hosting international events, tracking foreign direct investment, and building capacity.
Sec. 9
Assistant Secretary for Energy Security and Diplomacy
This section establishes an Assistant Secretary for Energy Security and Diplomacy and a Bureau of Energy Security and Diplomacy within the Department of State, reporting to the Under Secretary for Economic Growth, Energy, and the Environment. This new role is responsible for formulating and implementing international energy, energy technology, critical minerals, and relevant supply chain policies. It aims to protect U.S. energy security interests, coordinate energy programs abroad, and promote secure and diversified energy and critical mineral supply chains, including through international engagement and public diplomacy.
Sec. 10
Assistant Secretary for Water, Environment, and Space Affairs
This section establishes an Assistant Secretary for Water, Environment, and Space Affairs and a Bureau of Water, Environment, and Space Affairs, reporting to the Under Secretary for Economic Growth, Energy, and the Environment. This new role consolidates responsibilities related to space, oceans, polar affairs, environmental quality, freshwater, fisheries, wildlife, and conservation. It includes developing U.S. policy on global environmental security, leading international engagements on space activities, and promoting safe operations in space.
Sec. 11
Strengthening Economic Expertise at the Department of State
This section mandates that Office Director and Deputy Office Director positions under the new Under Secretary for Economic Growth, Energy, and the Environment generally be filled by civil service officers, with a phase-in period and exceptions for Foreign Service officers with requisite expertise. It also grants the Under Secretary direct hire authority for competitive service positions within their purview for four years (except for the Chief Economist's office, which is permanent). A report on plans to attract and retain economic expertise is also required.
Sec. 13
Energy Diplomacy and Security within the Department of State (Amendment)
This section amends the Energy Independence and Security Act of 2007 to allow the Secretary of Energy to make arrangements with the Secretary of State to assign personnel from the Department of Energy or National Laboratories to serve as dedicated advisors on energy matters in U.S. embassies or other diplomatic missions. This provision aims to strengthen energy diplomacy by embedding technical expertise directly into foreign missions.
The Office of the Chief Economist is granted maximum contracting flexibility, including personal services contracting authority for domestic positions and 'other transaction authority' (OTA) for adopting innovative technology and data analytics.
Sec. 6(6)(B)
Why it matters:While standard for certain specialized agencies or projects, granting OTA to a State Department office is a significant departure from typical federal contracting rules, allowing for faster procurement and potentially less oversight. Its placement here could be to avoid drawing immediate attention to this broad authority.
Case for: Proponents would argue that this flexibility is essential for the Chief Economist's office to rapidly acquire cutting-edge economic expertise and data analytics tools, enabling it to respond quickly to evolving geoeconomic challenges without being hampered by slow federal procurement processes.
Case against: Critics might argue that granting such broad contracting authority, particularly OTA, to a new office within the State Department could reduce transparency, accountability, and potentially lead to wasteful spending or conflicts of interest, as it bypasses many standard federal acquisition regulations.
Estimated impact: Potentially significant impact on how the office procures services and technology, allowing for rapid deployment of resources but with reduced oversight compared to traditional methods.
Mandates that Office Director and Deputy Office Director positions under the Under Secretary for Economic Growth, Energy, and the Environment shall generally be filled by civil service officers, with a phase-in period and a cap of one-third Foreign Service officers in these roles for the first five years.
Sec. 11(a) and (c)
Why it matters:This represents a notable shift from the traditional Foreign Service-centric staffing model of the State Department, particularly for leadership roles. Burying it in a general 'strengthening expertise' section might minimize immediate attention to the implications for Foreign Service career paths and institutional culture.
Case for: Proponents would argue that this ensures the new economic-focused bureaus are staffed with deep, specialized, and long-term expertise, which is often more characteristic of the civil service than the rotational Foreign Service. This allows for greater institutional memory and consistency in economic policy.
Case against: Critics would contend that this provision could marginalize the Foreign Service, limiting opportunities for diplomats with on-the-ground experience to lead economic policy. It might also create a bureaucratic divide and reduce the integration of economic policy with broader diplomatic efforts.
Estimated impact: Significant long-term impact on the career progression of Foreign Service officers in economic tracks and the overall composition of leadership within the new economic bureaus, favoring civil service expertise.
Grants the Under Secretary for Economic Growth, Energy, and the Environment direct hire authority for competitive service positions within their purview, bypassing provisions of title 5, United States Code, related to competitive hiring. This authority terminates after 4 years, except for the Office of the Chief Economist, where it is permanent.
Sec. 11(d)
Why it matters:Direct hire authority is a powerful tool that allows agencies to quickly fill critical positions without going through the lengthy and often cumbersome competitive hiring process. Granting this broad authority, especially permanently for one office, is a significant administrative power that could be controversial if highlighted.
Case for: Proponents would argue that this authority is essential for the new Under Secretary to rapidly staff up critical economic, energy, and environmental roles with highly qualified individuals, ensuring the Department can quickly adapt to evolving global challenges and fulfill its new mandates.
Case against: Critics might argue that bypassing competitive hiring processes can reduce transparency, fairness, and the quality of hires, potentially leading to cronyism or less diverse applicant pools. Making it permanent for one office raises further concerns about long-term accountability.
Estimated impact: Enables rapid and flexible hiring for a significant number of positions within the new Under Secretary's portfolio, potentially accelerating the establishment of the new bureaus but with reduced adherence to traditional federal hiring standards.