WASHINGTON, D.C. — U.S. Representative Zach Nunn (IA-03) today announced a bipartisan bill to strengthen oversight of foreign investment across the United States. The Foreign Investment Transparency and Accountability Act,which is co-led by U.S. Representative John Moolenaar (MI-02) and Bill Huizenga (MI-04), will bolster America’s national security and identify loopholes that fall outside the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS), a division within the U.S. Treasury.
“Ensuring our homeland is protected from foreign adversaries should always be top of mind,” said Rep. Nunn. “It is mission critical that we stop the Chinese Communist Party from purchasing American farmland and obtaining control of our food and energy sources. This is a commonsense solution to root out foreign adversaries and address growing concerns over foreign purchases.”
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 created with the intent of protecting America and stopping transactions that pose a risk to our national security,” said Rep. Moolenaar. “A lot has changed since CFIUS was created and unfortunately, it has been left behind. My legislation will increase Congressional oversight so the problems at CFIUS will be fixed and the committee can once again protect the American people from foreign investments that pose a national security risk.”
CFIUS was established under the Defense Production Act of 1950. The Committee consists of 16 federal agencies including the Departments of Defense, State, Treasury, and Commerce. CFIUS is responsible for reviewing the national security implications of a foreign transaction in the U.S.
“It is clear the CFIUS review process needs continued modernization as foreign entities with ties to the Chinese Communist Party and other hostile actors seek to expand their footprint in America,” said Congressman Bill Huizenga. “This legislation increases our national security by enhancing congressional oversight and requiring greater transparency and accountability from CFIUS.”
The Foreign Investment Transparency and Accountability Act will require CFIUS to notify Congress when a foreign investment is flagged by a CFIUS member agency as a threat to national security but is subsequently not reviewed. For these cases, CFIUS would be required under law to provide its justification for not reviewing the transaction to Congress.
Text of the bill can be found here.
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