Treasury Pilot Program Requires CFIUS Declarations For All Qualifying Investments

The Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA), among other things, authorizes the Committee on Foreign Investment in the United States (CFIUS or the Committee) to establish pilot programs to carry out certain provisions of the statute that did not go into effect when the law was enacted.  CFIUS is the multi-agency panel that reviews foreign investments to assess their impact on national security.  Investments deemed a threat may be restructured or mitigated to address CFIUS objections.  Transactions where the threat cannot be mitigated may be blocked by the president -- if not withdrawn and abandoned.

On October 10, following FIRRMA’s lead, the Department of the Treasury published interim regulations that will establish a pilot program expanding CFIUS review to include specific non-controlling foreign investments in U.S. businesses that are involved in critical technologies.  Qualifying controlling and non-controlling investments in “Pilot