Since its introduction in January 2023, Project Texas has made little impact on policy discussions about TikTok’s future. Even after TikTok CEO Shou Zi Chew’s congressional testimony in March 2023, the initiative was largely overlooked by lawmakers, with some dismissing it outright.
Project Texas aimed to mitigate three primary risks: unauthorized access to U.S. user data by the Chinese government, Chinese influence on content distribution, and a lack of transparency in detecting future risks. To combat these, TikTok planned to create a U.S. subsidiary (USDS) to manage data on Oracle Cloud with oversight from various entities, including CFIUS and third-party auditors. Despite this, lawmakers like Reps. Cathy McMorris Rogers, Frank Pallone, and Jay Obernolte criticized the plan, doubting its effectiveness against national security threats.
Despite press revelations about TikTok’s questionable practices, Project Texas sought to reduce—not eliminate—risks. Key efforts included storing U.S. data within the country and subjecting TikTok’s algorithm to external review. Furthermore, U.S. law could hold TikTok accountable for its public commitments under the Federal Trade Commission Act.
The system proposed under Project Texas allowed for significant modifications, such as increasing the number of auditors or creating a U.S.-only version of TikTok. However, legislators did not engage with these possible solutions, favoring legislation that assumes a sale or ban is the only answer. This approach undermines existing processes like CFIUS and potentially grants excessive authority to future presidents over technology companies.
The recent House-passed bill also bypasses the broader issue of lacking federal privacy laws, focusing narrowly on TikTok and ignoring wider online privacy concerns. Any actions taken might lead to complex legal battles and potential First Amendment issues. Additionally, the bill disregards the complex corporate structure of TikTok and overlooks the difficulties in completely eliminating Chinese ownership through a forced sale.
The bill may provoke retaliation from China, affecting other U.S. businesses. As TikTok’s fate hangs in the balance with the Senate and potential litigation, Project Texas’s goal of fostering a policy debate to address national security concerns related to foreign tech appears unfulfilled—a situation deemed unacceptable by critics like Rep. Pallone.
