Stroock Special Bulletin
“CFIUS Reform Easily Passes Senate”
Legislation Breaks New Ground
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.