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Last spring, the Treasury Department launched a pilot program for a fast-track CFIUS process. Now it’s looking to progress the program by seeking public input. In an announcement last week, Treasury says:

Through this RFI, stakeholders will have the opportunity to provide input into the development of the Known Investor Program as well as share feedback on additional areas where CFIUS may increase efficiencies and enhance its processes related to case reviews, non-notified transactions, mitigation, and monitoring and enforcement. Treasury is seeking a broad range of perspectives on these topics to inform its work. The comment period is open for any stakeholder with an interest in CFIUS and will close on March 18, 2026.

This Simpson Thacher alert explains the program, which is in many ways similar to the TSA’s Known Traveler program. For example, applicants will be asked to provide certain information at the time of application and only certain entities are anticipated to be eligible.

These include investors that have submitted at least three transactions to the Committee for review within the prior three years and anticipate submitting an additional transaction in the upcoming year. Furthermore, entities with prior CFIUS compliance issues, entities designated under certain U.S. government programs (e.g., the Entity List and Military End User List), and other entities with various connections to Adversary Countries, defined to include China (inclusive of Hong Kong and Macau) and certain other sanctioned jurisdictions, shall not be eligible for the Program.

Transactions will also continue to be reviewed on a case-by-case basis, but there are still anticipated benefits:

[W]e expect foreign investors, asset managers, private equity firms, and institutional investors to see tangible benefits for those admitted to the Program. Primarily, we expect that the Program could reduce timing uncertainty on transactions that require CFIUS approval by decreasing the likelihood that the Committee may require a second-phase investigation.

Perhaps more importantly, we expect that participation in the Program may benefit non-U.S. investors participating in a competitive M&A process, by allowing the investor to signal to a seller considering several offers that the investor has already been vetted and deemed lower-risk by the Committee. This may close some of the gap in the regulatory posture between the investor and competing U.S. bidders not subject to CFIUS filing requirements, or improve the regulatory posture as compared to similarly situated foreign investors that are not admitted to the Program.

– Meredith Ervine