DealLawyers.com Blog

On January 14, the House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions held a hearing on CFIUS. As detailed in this Debevoise alert, Treasury Assistant Secretary for Investment Security Chris Pilkerton shared his top-five 2026 goals for CFIUS during the hearing. The alert summarizes his testimony as follows:

– Maintaining national security as CFIUS’s core mission. Pilkerton emphasized that CFIUS’s primary objective remains identifying and mitigating national security concerns arising from covered transactions. He described the process as evaluating foreign actor threats and transaction vulnerabilities and identifying appropriate mitigation measures. Central considerations include foreign access to technology and data, proximity to sensitive sites and adversarial state ownership.

– Improving process efficiency. Pilkerton highlighted the Known Investor Program (the “KIP”), which was launched on a pilot basis last year. The KIP seeks to collect detailed information from repeat or trusted investors in advance of transactions. The Department of the Treasury (“Treasury”) intends this program to expedite reviews for lower-risk investors while preserving robust CFIUS reviews. A public request for information is expected soon to inform Treasury’s finalization and formal launch of the KIP.

– Prioritizing non-notified transaction review. Transactions not filed with CFIUS, known as non-notified transactions, continue to be a CFIUS priority for review. Recognizing that post-closing mitigation is often more difficult and disruptive, CFIUS plans to expand outreach and detection efforts to address transactions that close without a CFIUS filing. Although CFIUS filings are voluntary for many transactions, CFIUS plans to continue to address transactions that implicate, but do not comply with, the mandatory filing requirement.

– Expanding expertise in key risk areas. Pilkerton committed to doubling the size of CFIUS’s research team, with a focus on PhD-level experts in emerging technologies, artificial intelligence, semiconductors, biotechnology and sensitive data sectors.

– Continuing international and domestic engagement. Consistent with the Foreign Investment Risk Review Modernization Act of 2018, Treasury will continue to engage with foreign allies and partners on their own investment screening regimes. Pilkerton also stated that he intends to meet with state officials and legislators to increase awareness of CFIUS, its jurisdiction and its processes.

The alert also summarizes the concerns expressed by Subcommittee members, including scrutiny of China-related transactions and farmland and critical infrastructure.

– Meredith Ervine