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ARTICLE · 06 NOVEMBER 2026

Treasury Proposes Significant Expansion Of U.S. Outbound Investment Security Program

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The U.S. Department of the Treasury has proposed significant expansions to the Outbound Investment Security Program, adding new technology sectors including biotechnology, high-performance computing, and hypersonic systems while converting certain AI-related investments from notifiable to prohibited transactions. The proposed regulations would broaden the scope of covered transactions and introduce new exceptions, with final rules expected by March 2027.

GlobalGovernment, Public Sector
Catherine Hein
Catherine Hein
Ken Rivlin
Ken Rivlin
Brendan Holman
Brendan Holman
Jake Ely
Jake Ely
Emma Schaechter-Santander
Emma Schaechter-Santander
Sarah Umstadt
Sarah Umstadt
Kyungwon (Won) Lee
Kyungwon (Won) Lee
Michael Kim
Michael Kim
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On October 22, 2026, the U.S. Department of the Treasury (“Treasury”) issued a Notice of Proposed Rulemaking to update the Outbound Investment Security Program (the OISP) in accordance with the Comprehensive Outbound Investment National Security Act (the “COINS Act”) (such notice of proposed rulemaking, the “Proposed Rule”).1

The Proposed Rule will remain open for public comment until December 7, 2026, and Treasury is required to issue final regulations by mid-March 2027. Until the final regulations take effect, the current OISP regulations at 31 C.F.R. Part 850 (the “Part 850 Regulations”) continue to apply.

Although the Proposed Rule largely follows the existing structure of the Part 850 Regulations and adopts many of the existing definitions, it includes some significant changes to the scope of the OISP, including additional sectors and an expanded list of prohibited transactions. The Proposed Rule also refines certain provisions in the Part 850 Regulations and adds new or

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