“CFIUS Reform Easily Passes Senate”
Acknowledging that “the nature of the investments that pose the greatest potential risk to national security” has changed since 2007 – the last time Congress rewrote the laws governing the Committee on Foreign Investment in the United States (CFIUS) – the Senate approved legislation on June 18, 2018 that would expand the scope of CFIUS reviews, invite reviews on new threats, streamline the process, and adopt a risk-based approach to reviews that focuses on investments from “countries of special concern.”
This Stroock Special Bulletin provides an overview of key elements in the Senate-passed bill – the Foreign Investment Risk Review Modernization Act of 2018. The bill must still be approved by a House-Senate conference committee and signed by the President before it can become law, but its chances of enactment are good. CFIUS is the multi-agency government panel that reviews foreign acquisitions to assess their impact on national security. Following review, the President can veto or unravel deals deemed to threaten U.S. national security.