“Four Things You Need to Know About the CFIUS Reform Legislation”
On November 8, 2017, Senator John Cornyn (R-TX) and a bi-partisan group of co-sponsors, including Dianne Feinstein (D-CA), Richard Burr (R-NC), Marco Rubio (R-FL), Amy Klobuchar (D-MN) and others, introduced the long-awaited Foreign Investment Risk Review and Modernization Act (“FIRRMA”). A companion bill was introduced in the House of Representatives by Cong. Robert Pittenger (R-NC9) and a bi-partisan group of co-sponsors, including Dave Loebsack (D-IA2).
This Stroock Special Bulletin provides an overview of the proposed legislation, which would greatly expand the power and reach of the Committee on Foreign Investment in the United States (“CFIUS”), the multi-agency panel that vets foreign acquisitions to address national security concerns. Unless withdrawn or satisfactorily modified, transactions deemed a threat by CFIUS may be blocked or unwound by the President.