Sponsors (5)
Introduced February 25, 2026 by Joaquin Castro · Last progress February 25, 2026
The bill helps protect U.S. critical infrastructure and shore up supply-chain/security coordination with partners, but it creates compliance costs, potential sovereignty/diplomatic friction, and is limited by a short three-year sunset.
Partner countries will receive technical assistance to build or strengthen investment-screening systems that reduce risks to U.S. critical infrastructure and sensitive technologies.
U.S. agencies, private-sector firms, and partner governments will have improved coordination to identify and mitigate cross-border supply-chain vulnerabilities.
Congress (and thus taxpayers) will receive annual reports on assistance provided, risks identified, and recommendations, increasing oversight and transparency of U.S. foreign investment security efforts.
Financial institutions and companies doing cross-border deals will face additional compliance obligations that could add regulatory friction and increase transaction costs.
State and local governments and partner countries may experience expanded U.S. influence over their investment rules, creating sovereignty concerns and potential diplomatic friction.
Foreign-aid and partner governments face uncertainty because the program sunsets after three years, which may limit long-term effectiveness and require repeated renewals.
Based on analysis of 2 sections of legislative text.
Creates a State Department initiative to help partner countries develop and assess foreign investment screening to reduce national security risks to infrastructure, sensitive tech, and supply chains.
Creates a Department of State initiative to help partner countries design, implement, and evaluate foreign investment screening systems that reduce national security risks to critical infrastructure, sensitive technologies, supply chains, and counter malign foreign influence. The State Department must launch the program within 180 days, designate leadership from the Economic Growth, Energy, and the Environment team, coordinate with other agencies, and run the Initiative for up to three years. Requires an initial report to the House Foreign Affairs and Senate Foreign Relations Committees within one year and annual reports for three years describing assistance provided, partner progress, emerging risks, recommendations, and reasons for adding new partner countries. The bill also defines key terms used for the Initiative and specifies which congressional committees are “appropriate.”