The U.S. House Financial Services Committee held a National Security Subcommittee hearing on “U.S. Policy on Investment Security” to examine how the Committee on Foreign Investment in the United States (CFIUS) safeguards national security while maintaining an open investment environment. In opening remarks, Subcommittee Chair Warren Davidson argued that CFIUS should operate efficiently to address threats without imposing unnecessary burdens on U.S. businesses, and that inbound screening alone is insufficient to protect U.S. interests. The remarks highlighted CFIUS’s Treasury-led role and referenced the 2018 Foreign Investment Risk Review Modernization Act (FIRRMA) expansion of CFIUS jurisdiction to certain non-controlling investments involving critical technologies, critical infrastructure, and sensitive personal data. Davidson pointed to a February National Security Presidential Memorandum directing intensified oversight of adversarial investments while streamlining reviews for trusted allies, and called for Congress to enact an outbound investment regime with explicit sanctions to prevent U.S. capital from supporting industries in adversarial nations, using a clear and streamlined compliance framework.
U.S. Financial Services Committee 2025-07-16
U.S. House Financial Services Committee convenes hearing on CFIUS investment security and urges outbound investment bill with sanctions
The U.S. House Financial Services Committee's National Security Subcommittee held a hearing on "U.S. Policy on Investment Security," focusing on CFIUS's role in safeguarding national security. Chair Warren Davidson stressed efficient threat management without burdening U.S. businesses and supported an outbound investment regime with sanctions to prevent aiding adversarial nations. The discussion referenced the 2018 FIRRMA and a recent presidential memorandum on investment oversight.