On May 8, 2025, the U.S. Department of the Treasury (Treasury) announced that it will establish a fast-track pilot program to facilitate greater investment in U.S. businesses from allies and partners. The process will include the launch of a Known Investor portal whereby the Committee on Foreign Investment in the United States (CFIUS), which is chaired by Treasury, can collect information prior to an investor's formal CFIUS filing and store that information to expedite future review processes for trusted foreign parties. As the Deputy Secretary of the Treasury Michael Faulkender explained at a CFIUS conference on April 24, 2025, this "knowledge base" of stored information associated with the fast-track process "limits the amount of information that needs to be resubmitted with each new filing, which could be a particularly useful tool for repeat filers."
The announcement signals implementation of a portion of the Trump administration's February 21, 2025 "America First Investment Policy" presidential memorandum. The memorandum outlined three general principles the administration would follow in setting policy regarding foreign investment in U.S. assets and using U.S. financial markets. The administration planned to: (1) streamline investments in the United States by allies and partners, (2) reduce foreign adversaries' controlling investments in sensitive U.S. sectors, and (3) reduce U.S. investments in adversaries' industries that advance their military modernization and development. To further the first principle, the memorandum also specifically contemplated creation of the fast-track investment review process that is the subject of Treasury's announcement and this alert.
Treasury did not explain in its announcement when the fast-track pilot program will come online, how it will work, or how eligibility will be determined. However, we can glean additional information from the America First Investment Policy. Although the February memorandum discusses insulating U.S. businesses from "foreign adversaries" and "threat actors" more broadly, it focuses particularly on threats from the People's Republic of China (PRC). According to the memorandum, restrictions on foreign investors' access to U.S. assets will ease "in proportion to their verifiable distance and independence from the predatory investment and technology-acquisition practices of the PRC." To be fast-tracked for approval, investors may not only need to demonstrate distance from the PRC, but may also be required to "avoid partnering with United States foreign adversaries," including the PRC. Finally, although the Treasury announcement did not detail particular sectors that would be eligible for fast-track approval consideration, the memorandum provided that the process would facilitate investment in "United States businesses involved with United States advanced technology and other important areas." Other important areas mentioned in the memorandum include "critical infrastructure, healthcare, agriculture, energy, and raw materials."
Therefore, although the announcement only previews an upcoming pilot program with as-of-yet undefined parameters, it is likely the program, whenever it is launched, will scrutinize foreign entities wishing to invest in the sensitive sectors mentioned above (and perhaps others) for involvements in and relationships with the PRC (and other foreign adversaries of the United States). What it will mean for parties to "avoid partnering with United States foreign adversaries," and how parties can demonstrate sufficient "verifiable distance and independence" from U.S. foreign adversaries, is still yet to be determined. For now, as the United States balances growing investments from allies and partners with protecting national security, companies hoping to invest through this program should begin taking stock of their presence in the PRC and how they might demonstrate their operational independence from the Chinese government. We will advise of further developments as they occur.
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