CFIUS Reform: House and Senate Committees Unanimously Clear Bills That Would Greatly Expand CFIUS Authority

On May 22, shortly before the US Memorial Day holiday weekend, the US House and Senate committees with jurisdictions over foreign investments in the US unanimously passed their respective legislations that would greatly expand the authority bestowed on the Committee on Foreign Investment in the United States (CFIUS). The bipartisan, bicameral effort introduced the Foreign Investment Risk Review Modernization Act (S. 2098/H.R. 4311, FIRRMA for short), which has strong support from the Trump Administration.

Our publication describes the key components and major differences between the House and Senate versions of the bills, leaving aside for the time being the many procedural differences that exist (e.g., filing fee requirements, extended timelines and suspensory review periods).

In addition to CFIUS developments, we are monitoring proposed investment restrictions and enhanced export controls affecting critical technology transfers, as the White House announced additional protectionary measures on May 29 that target China and its trade practices with regard to “industrially significant technology.” We will follow up on this development in a subsequent publication.