Insights

The Department of Commerce Bureau of Industry and Security’s (BIS) fiscal year 2027 (FY2027) budget request, issued in April 2026, indicates how the Trump administration plans to approach export control and trade enforcement in the near future. While Congress will ultimately determine final funding levels, the administration’s proposal points to a continued expansion of enforcement capacity and a broader role for export controls in economic and national security policy.

Additional Funds and Personnel Requested

BIS asked for $450 million in FY2027, representing a notable increase over FY2026’s enacted level of $235 million. Approximately $255 million of the $450 million is specifically earmarked for export enforcement operations. The request also includes funding for 1,077 positions, reflecting a meaningful expansion of BIS’s workforce.

A significant portion of the requested increase is directed toward enforcement. BIS has indicated that it plans to add nearly 290 additional export enforcement agents, along with engineers and technical specialists to support investigations. The request also supports an expansion of the agency’s overseas presence, with BIS seeking to add 40 export control officers stationed abroad.

Potential Impacts

If implemented, these changes are likely to result in more frequent and faster-moving enforcement actions. Historically, BIS has had limited capacity relative to its mandate, which includes administering the Export Administration Regulations (EAR), maintaining control lists (e.g., Entity List and Military End User (MEU) List), enforcing antiboycott regulations, and investigating potential violations. Additional personnel and resources would allow the agency to open more cases, pursue more complex matters, and reduce the time needed to develop enforcement actions.

The budget request also reflects an increasingly international approach to enforcement. With more personnel stationed overseas, BIS would be better positioned to conduct end-use checks, verify compliance, and coordinate with foreign governments. This is particularly relevant in cases involving reexports, transshipment, and the use of third-country intermediaries. As a result, companies should expect greater scrutiny not only of U.S.-based activities but also of their global operations and supply chains.

In terms of substantive focus, enforcement is expected to remain concentrated in sectors tied to strategic technologies, including semiconductors, advanced computing, artificial intelligence, and other emerging fields. Transactions involving higher-risk jurisdictions will likely continue to receive particular attention.

The request also supports continued use of administrative enforcement tools, such as Entity List designations and denial orders. These measures can be implemented relatively quickly and can significantly restrict a company’s ability to engage in international trade. BIS may rely on these tools more frequently as part of its overall enforcement strategy. As a reminder, the enactment of the BIS “Affiliates Rule,” unveiled on September 29, 2025, which greatly expands the reach of the Entity List and MEU List, is currently paused until November 9, 2026. The additional enforcement resources requested will be critical if and when the Affiliates Rule becomes effective.

Extension of Statute of Limitations?

Separate from the FY2027 budget request, BIS, through the Assistant Secretary of Commerce for Export Enforcement, David Peters, supported an extension of the statute of limitations for export control violations in an appearance before Congress. Specifically, in remarks given before the House Foreign Affairs Subcommittee on South and Central Asia on February 24, Asst. Secretary Peters encouraged Congress to extend the statute of limitations under the Export Control Reform Act from five years to ten years. This extension would mirror the April 2024 increase in the limitations period for most economic sanctions violations. 

For companies, the main takeaway is that the expectations for compliance are increasing alongside enforcement capacity. Regulators are focused on whether companies have implemented effective, risk-based compliance programs that reflect the nature of their business. This includes product classification, screening of counterparties, due diligence on end use and end users, and ongoing monitoring of transactions.

If you have any questions about BIS, its enforcement operations, or export control compliance generally, please do not hesitate to contact us at info@torrestradelaw.com.