This bill seeks to fundamentally realign the Department of State's structure to ensure that economic and foreign policies are integrated, reflecting the principle that economic security is national security. It establishes an Under Secretary for Economic Affairs within the Department, responsible for a wide array of issues including economic growth, commercial expansion, energy, technology policy, critical minerals, and environmental protection. This new Under Secretary will coordinate all economic and business affairs in foreign policy, developing strategic plans, promoting U.S. private sector opportunities, and safeguarding the preeminence of the U.S. dollar. To bolster this new structure, the bill authorizes a Chief Economist and an Office of the Chief Economist to provide expert research and analysis on geoeconomic trends, supply chain resilience, and strategies to counter malign foreign actors. It also creates an Assistant Secretary for Commercial Diplomacy and a corresponding Bureau, tasked with leading trade and investment promotion, international finance, and development. This Assistant Secretary will oversee a new Office of Subnational Diplomacy , designed to help U.S. state and local governments attract foreign investment, counter foreign influence, and contribute to national foreign policy goals. Further specialization is introduced through the establishment of an Assistant Secretary for Water, Environment, and Space Affairs and a dedicated Bureau, focusing on oceans, natural resources, environmental security, and civil and commercial space policy. An Assistant Secretary for Energy Security and Diplomacy and a Bureau are also created to formulate and implement international energy, energy technology, and critical minerals policies, ensuring U.S. energy security interests are advanced globally. Lastly, an Assistant Secretary for Sanctions Policy and a Bureau will be responsible for developing and coordinating sanctions strategies, ensuring their effectiveness and alignment with U.S. foreign policy objectives. The bill authorizes appropriations for these new positions and bureaus for fiscal years 2026 and 2027, with funds allocated under the Under Secretary for Economic Affairs. It also specifies that existing officials in related roles will transition to these new positions upon enactment, with subsequent appointments requiring Senate confirmation. Additionally, the legislation amends the CHIPS Act of 2022 to place the International Technology Security and Innovation Fund under the direct oversight and administration of the new Under Secretary for Economic Affairs.