(Washington D.C.) U.S. Representative Zach Nunn (IA-03) announced the introduction of a bipartisan bill aimed at strengthening oversight of foreign investments in the United States. The Foreign Investment Transparency and Accountability Act, co-led by U.S. Representatives John Moolenaar (MI-02) and Bill Huizenga (MI-04), seeks to bolster national security and address gaps in the oversight process managed by the Committee on Foreign Investment in the United States (CFIUS), a division of the U.S. Treasury.
Under current law, no justification is given to Congress if a transaction is initially flagged by a CFIUS official as a threat to national security and then ultimately not reviewed.
CFIUS was established under the Defense Production Act of 1950 and comprises 16 federal agencies, including the Departments of Defense, State, Treasury, and Commerce. The Committee is tasked with reviewing the national security implications of foreign transactions in the U.S.
The Foreign Investment Transparency and Accountability Act will mandate that CFIUS notify Congress when a foreign investment flagged by a CFIUS member agency as a national security threat is not reviewed. In such cases, CFIUS will be required by law to provide its justification for not reviewing the transaction to Congress.
