The Aerospace Export Safeguard and Innovation Act helps protect the state’s aerospace and defense industries from global trade shocks by strengthening export support, stabilizing supply chains, and investing in domestic innovation. The legislation provides targeted assistance to firms hit by tariff disruptions, supports workforce retention, and accelerates development of secure, homegrown materials and components. By pairing short-term resilience with long-term competitiveness, the Act aims to keep high-value manufacturing jobs in the state and ensure continuity in a strategically vital sector.

Key Provisions

• Aerospace Export Resilience Grant Program: Provides grants to aerospace firms affected by federal or retaliatory tariffs to stabilize export operations and retain skilled workers.

• Advanced Materials and Components Security Initiative: Funds research and partnerships to develop domestic alternatives to tariff-impacted aerospace inputs, including metals, composites, and electronics.

• Defense Export Facilitation Services: Expands state trade assistance for aerospace firms navigating complex international arms trade compliance and export licensing.

• Supply Chain Continuity Planning Assistance: Offers technical assistance for aerospace manufacturers developing contingency strategies for sourcing and logistics interruptions.

1. Aerospace Trade Monitoring Council: Establishes a state-level council to track global aerospace trade patterns, identify vulnerabilities, and advise policymakers.

Model Language

Section 1. Short Title. This Act shall be known and may be cited as the “Aerospace Export Safeguard and Innovation Act.”

Section 2. Purpose. The purpose of this Act is to mitigate the impact of international trade disruptions on the aerospace and defense sectors and to support innovation and secure export pathways.

Section 3. Definitions.

(a) “Eligible aerospace entity” means a company or research institution engaged in aerospace manufacturing, research, or defense contracting.

(b) “Tariff-related disruption” means any negative economic impact resulting from U.S. or foreign tariffs that affect aerospace inputs, exports, or partnerships.

(c) “Department” means the state agency responsible for commerce or economic development.

Section 4. Aerospace Export Resilience Grant Program.

(a) There is established within the Department the Aerospace Export Resilience Grant Program.

(b) Grants shall be awarded to eligible aerospace entities experiencing tariff-related disruptions.

(c) Eligible uses include maintaining export operations, workforce retention, supplier diversification, and international compliance.

(d) The Department shall establish program guidelines, including application requirements and oversight procedures.

Section 5. Advanced Materials and Components Security Initiative.

(a) The Department shall create and fund a competitive grant program to:

(1) Support research into domestic or tariff-neutral alternatives to foreign aerospace materials;

(2) Facilitate public-private partnerships with universities and federal labs;

(3) Encourage domestic production of critical aerospace inputs.

(b) Projects shall be selected based on national security relevance, economic feasibility, and supply chain risk reduction.

Section 6. Defense Export Facilitation Services.

(a) The Department shall expand support services for aerospace firms engaged in exporting defense-related goods.

(b) Services may include:

(1) Compliance assistance with International Traffic in Arms Regulations (ITAR);

(2) Training on export control laws and foreign licensing;

(3) Legal and logistical support for navigating foreign countermeasures.

Section 7. Supply Chain Continuity Planning Assistance.

(a) The Department shall provide aerospace companies with technical assistance to:

(1) Map critical supply dependencies;

(2) Develop contingency plans for procurement and transportation;

(3) Identify domestic or alternative foreign sourcing opportunities.

Section 8. Aerospace Trade Monitoring Council.

(a) There is hereby established the Aerospace Trade Monitoring Council (“the Council”).

(b) The Council shall:

(1) Monitor aerospace trade patterns and tariffs;

(2) Evaluate exposure to trade disruptions;

(3) Recommend adaptive policy strategies to the Legislature and Governor.

(c) The Council shall be composed of members appointed by the Governor or executive authority, including representatives from industry, academia, and economic development agencies.

(d) The Council shall publish an annual public report.

Section 9. Severability. If any provision of this Act is held invalid, such invalidity shall not affect other provisions which can be given effect without the invalid provision.

Section 10. Effective Date. This Act shall take effect on July 1 of the year following its enactment.

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