Bill would void surrogacy contracts with citizens of China, Russia, Iran, North Korea

What does this do?

HR 7040 would make surrogacy contracts legally invalid and unenforceable when the intended parent is a citizen or permanent resident of a country the U.S. government has designated a foreign entity of concern, a list that currently includes China, Russia, Iran, and North Korea. An exception applies when the intended parents are a married couple and at least one spouse is a U.S. citizen or lawful permanent resident. If a child is born under a voided contract, a family court in the surrogate's state would decide custody based on the best interests of the child, disregarding the original contract.

Who does it affect?

The bill most directly affects American women who work as surrogates, surrogacy agencies and brokers operating in the United States, and citizens of the listed countries who currently use U.S. surrogacy services. It would not affect arrangements where both intended parents are American or where a married couple includes at least one American.

Why does it matter?

Surrogacy brokers who knowingly or recklessly arrange one of these now-banned contracts could face criminal penalties, removing a category of business activity currently available to U.S.-based agencies. Custody of any child born under a voided contract would shift from the terms of the original agreement to a court determination, creating legal uncertainty for all parties involved.

What does it cost, and who pays?

• Brokers face fines if in violation
• Up to 1 year in prison possible
• Fine or prison or both

Where does it stand?