Senate bill would bring foreign-built U.S. facilities under security review

What does this do?

S 1388 expands the authority of the Committee on Foreign Investment in the United States (CFIUS) to cover greenfield investments, meaning cases where a foreign investor buys or leases American land and builds a brand-new facility on it. Currently CFIUS only reviews deals involving the purchase or takeover of existing American businesses. Investors connected to designated foreign countries of concern would be required to file formal notice with CFIUS before proceeding.

Who does it affect?

The bill targets foreign investors linked to governments of countries of concern, a category that includes nations such as China, Russia, Iran, and North Korea. American landowners or businesses that partner with those investors, and communities that might otherwise receive foreign-funded facilities or jobs, could also be indirectly affected.

Why does it matter?

CFIUS would gain authority to investigate new foreign-built facilities for national security risks and could block projects it deems a threat. Communities and American partners involved with investors from countries of concern may face disrupted or blocked development plans as a result.

Where does it stand?