Senate Democrats Seek More ‘Transparency’ on Outbound Investment Restrictions
Five Senate Democrats led by Banking Committee ranking member Elizabeth Warren, D-Mass., urged the Treasury Department Nov. 5 to provide more information about how it is implementing new restrictions on U.S. outbound investment in China.
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The Outbound Investment Security Program arose from an October 2024 Biden administration rule creating prohibitions and notification requirements for investment in China’s semiconductor, AI and quantum sectors (see 2410280043). Memos President Donald Trump issued in January and February called for studying potential changes to the program (see 2501210023 and 2502240051).
But in a letter to Treasury Secretary Scott Bessent, the senators said the results of the Trump administration's review have not been shared with Congress or the public, even as lawmakers consider whether to pass legislation to make the investment restrictions permanent. “This lack of transparency raises questions about both the direction of outbound investment screening and your commitment to the program,” the senators wrote.
The letter asks Treasury to answer several questions by Nov. 19, including whether it has finished reviewing the program and whether it supports codifying the program into statute. It seeks to know whether Treasury has identified “any shortcomings and additional authority required to make the program more effective and flexible going forward.”
In addition to Warren, the letter is signed by Senate Minority Leader Chuck Schumer, D-N.Y., and Sens. Catherine Cortez Masto, D-Nev.; Michael Bennet, D-Colo.; and Andy Kim, D-N.J. Treasury didn’t respond to a request for comment.
The letter came as House and Senate negotiators consider whether the FY 2026 National Defense Authorization Act (NDAA) should include legislation to codify the investment restrictions. The Senate-passed version of the NDAA contains such legislation, called the Fight China Act, while the House-passed version does not (see 2510100015 and 2510230038). Sen. John Cornyn, R-Texas, one of the leaders of the Fight China Act, said last month that he's optimistic his proposal will become law (see 2510230038).