Treasury Eyes RFI, Guidance on New CFIUS Fast-Track Process
The Treasury Department plans to release a request for information “soon” to get feedback on how the Committee on Foreign Investment in the U.S. can ensure its new fast-track process for certain deals is as efficient as possible, CFIUS’s overseer told a congressional panel Jan. 14.
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Treasury is piloting the new process as the Known Investor Program and intends to “build upon this pilot over the course of this year,” said Christopher Pilkerton, Treasury’s assistant secretary for investment security. Pilkerton testified before the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions that he also expects to be “putting out a lot of public guidance” on the program this year.
Treasury unveiled the fast-track process in May, saying it would help encourage close U.S. allies to increase their investment in American businesses (see 2505080040).
More generally, Pilkerton, who was sworn in Jan. 5 after receiving Senate confirmation in December (see 2512190065), wants to make CFIUS more streamlined and predictable. “While I’ve just been in the office for about a week, I already have a big whiteboard in my office that says ‘process,’ ‘process,’ ‘process,’” he said. “I want to make sure that we are minimizing the inefficiencies in the process and hearing from the public and the stakeholders to ensure that the information that we’re asking for is certainly consistent with what we need to make” decisions.
Asked by committee Chairman French Hill, R-Ark., why CFIUS hasn't added more countries, such as Japan, to its "excepted foreign states" list, which provides certain exemptions from filing requirements, Pilkerton said Treasury is "always examining that and looking at opportunities to ensure that we are able to bring in various investment from various countries." The list is currently limited to Australia, Canada, New Zealand and the U.K.
To address concerns about transactions that possibly should be reported to CFIUS but aren't, Pilkerton said he plans to conduct a significant amount of travel to educate state chambers of commerce and others about CFIUS. “Non-notified transactions are going to be a priority for this administration,” he said. Another priority will be scrutinizing real estate transactions near military bases and other sensitive sites.
To ensure CFIUS stays abreast of rapidly changing technology, Pilkerton intends to double the size of its research team "to ensure that we have Ph.D. experts that are working on each of these areas." He also is reviewing whether CFIUS has any “gaps” in its authorities. While he believes existing authorities are “strong,” he said he won't hesitate to ask for new ones if he believes they are needed.
Turning to the newly enacted Comprehensive Outbound Investment National Security Act, or Coins Act, which codifies Treasury’s restrictions on outbound investment in China and other “countries of concern” (see 2512290037), Pilkerton said there will be “full notice and comment” on regulations to implement the new law. The Coins Act gives Treasury 450 days, or until March 13, 2027, to issue the new regulations.
Also during the hearing, Rep. Sam Liccardo, D-Calif., revealed that he sent a letter to Paramount Skydance urging the company to voluntarily ask CFIUS to review its proposed acquisition of media and entertainment conglomerate Warner Bros. Discovery, even if it believes it is not required to do so. Liccardo said he is concerned that Paramount Skydance’s bid is funded by Saudi, Qatari and United Arab Emirates government investment funds.
"Any transaction providing foreign investors with governance rights, access to non-public data, or indirect influence over content distribution creates vulnerabilities that foreign governments could exploit," he wrote. "Voluntary filing would demonstrate good faith, enhance public trust, and provide assurance of the vetting of national-security, private data, and influence risks."
Liccardo's congressional district includes the headquarters of Netflix, which also is bidding for Warner Bros. Discovery. Paramount Skydance declined to comment on the letter.
Also at the hearing, Rep. Al Green, D-Texas, revealed that he and Rep. Judy Chu, D-Calif., plan to reintroduce a bill that would preempt state laws restricting land ownership of foreign individuals. Green asserted that such laws can promote xenophobia.