Sponsors (2)
The bill boosts U.S. national-security posture and protects sensitive supply chains by helping partners screen foreign investments, but it raises investor compliance costs, creates diplomatic sensitivities, and requires taxpayer-funded administrative resources.
Partner countries' governments and U.S. diplomatic efforts will receive training and technical assistance that strengthens U.S. ability to help them screen foreign investments for national-security risks.
U.S. companies and the broader economy benefit because promoting stronger screening standards abroad can reduce the risk of sensitive technologies and critical infrastructure being transferred to adversaries, helping protect supply chains and sensitive tech.
Foreign investors and U.S.-based firms investing abroad may face more complex, restrictive, or slower reviews in partner countries as screening mechanisms are promoted, increasing compliance costs and transactional delays.
Countries not designated as partners or criticized in required reports could experience diplomatic friction, potentially harming bilateral relations and cooperation.
U.S. taxpayers and State Department staff will bear the administrative and staffing costs of establishing and operating the initiative for up to five years.
Based on analysis of 2 sections of legislative text.
Creates a State Department initiative to help partner countries screen foreign investment for national security risks and requires periodic congressional reporting.
Official title: Require the Secretary of State to establish the Initiative on Foreign Investment Screening, and for other purposes.
Introduced June 24, 2026 by Timothy Michael Kaine · Last progress June 24, 2026
Creates a State Department initiative to help U.S. partner countries build and improve their systems for screening foreign investment for national security risks. The Secretary of State must stand up the program within 180 days, designate a lead, coordinate with other U.S. agencies, provide technical assistance and information sharing, and end the initiative after five years. The law requires annual reporting to the House Foreign Affairs Committee and Senate Foreign Relations Committee (starting within one year) for three years about activities, partner-country assessments, emerging risks, and recommendations, and defines key terms such as "partner country," "foreign investment," and "national security risk."