Defence bill likely to house beefed up Cfius provisions

Author: John Crabb | Published: 13 Jun 2018

The Foreign Investment Risk Review Modernization Act (Firrma) is likely to be tacked on to the National Defense Authorization Act (NDAA) for the fiscal year 2019 to ensure smooth passage through Congress later this year.

The consensus in Congress is that reform of the Committee on Foreign Investment in the United States (Cfius) is necessary, which begs the question that if the bill reaches a form that everyone can agree with – why not pass it as a standalone entity? There are a couple of reasons that this might not be the preferred solution, according to Michael Leiter, partner at Skadden.

"It takes time to pass any bill, which takes away from other legislative priorities. Folding Cfius into the 'must-pass' NDAA, especially given the Department of Defense’s [DoD] strong support for Cfius...