U.S. Reps. John Moolenaar (R-MI) and Bill Huizenga (R-MI) on June 5 introduced legislation that would strengthen the review of national security considerations related to investments in U.S. land and businesses by foreign entities.
The bill would specifically increase congressional oversight of the Committee on Foreign Investment in the United States (CFIUS), which was established in 1950 and consists of 16 federal agencies. No justification is given to Congress under current law if a transaction is flagged by a CFIUS official as a threat to national security and then ultimately never reviewed, Rep. Moolenaar’s office said.
“CFIUS was created with the intent of protecting America and stopping transactions that pose a risk to our national security. 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,” Rep. Moolenaar said.
Rep. Moolenaar sponsored the Foreign Investment Transparency and Accountability Act, H.R. 8636, with Rep. Huizenga to require the CFIUS to notify Congress and provide reasonings as to why transactions that are flagged as national security threats are not reviewed.
“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,” Rep. Huizenga said. “This legislation increases our national security by enhancing congressional oversight and requiring greater transparency and accountability from CFIUS.”