Sponsors (2)
The bill strengthens U.S. national security and supply-chain resilience by helping partner countries screen risky foreign investments, but it imposes government costs, could increase compliance burdens for investors, and may create diplomatic friction.
Small businesses, financial institutions, and U.S. national security: Promotes adoption of foreign screening standards that help protect U.S. supply chains and sensitive technologies by reducing cross-border transfer risks for critical infrastructure and advanced tech.
U.S. government and partner countries: Strengthens U.S. diplomatic capacity to help partner countries screen foreign investments for national-security risks through training and technical assistance.
Foreign investors, small businesses, and financial institutions: Encouraging partner-country screening could lead to more restrictive or complex foreign investment reviews abroad, increasing compliance costs and delays for investors.
Foreign governments and U.S. diplomacy: Allowing the Secretary to identify 'partner countries' and report reasons to Congress risks creating diplomatic tensions or offending countries not selected or criticized in reports.
Taxpayers and State Department personnel: Creating and operating a State Department initiative for up to five years will impose additional administrative budgetary and staffing costs borne by taxpayers and the Department.
Based on analysis of 2 sections of legislative text.
Requires the State Department to create a five-year Initiative to help partner countries strengthen foreign investment screening for national security risks and report annually to Congress.
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-led Initiative on Foreign Investment Screening to help allied and partner countries strengthen reviews of foreign investments that pose national security risks. The Initiative will provide training, technical assistance, guidance, information sharing, and outreach, be led by the Under Secretary for Economic Affairs (or a designee), and must be set up within 180 days of enactment. The Initiative will operate for up to five years, require annual reports to relevant congressional committees for three years, and include partner-country assessments, program activities, emerging risk analysis, and recommendations. The bill defines key terms and gives the Secretary discretion to designate partner countries (including FTA partners and mutual defense treaty partners).