Treasury Seeks Input on New “Known Investor Program” to Streamline Foreign Investment Reviews
The U.S. Treasury Department is advancing plans for a new program that could significantly reshape how foreign investments are screened for national security concerns, while potentially making the process smoother for trusted international investors.
In a move aimed at balancing security vigilance with investment openness, Treasury has issued a Request for Information (RFI) on the proposed “Known Investor Program” and other potential improvements to the Committee on Foreign Investment in the United States (CFIUS) review process.
Streamlining Security Reviews While Maintaining Vigilance
The Known Investor Program, first announced in May 2025, would create a mechanism for certain foreign investors to provide information to U.S. authorities before submitting formal transaction filings. This pre-screening approach aims to expedite the due diligence process for investors with established track records.
“The United States has a dynamic economy that attracts strong and stable foreign investment from around the world,” Treasury stated in its announcement. “As Chair of CFIUS, Treasury is leading efforts to improve process efficiencies while ensuring that CFIUS continues to fulfill its core mission of identifying and addressing national security risks that can accompany foreign investment.”
Why does this matter? For nearly five decades, CFIUS has served as America’s gatekeeper for foreign investments that might affect national security. The interagency committee, established in 1975, has taken on heightened importance in recent years amid growing concerns about technology transfer and strategic infrastructure.
Assistant Secretary for Investment Security Chris Pilkerton emphasized the significance of the initiative, saying, “Today’s RFI marks an important step towards advancing enhancements to the CFIUS process. It underscores the efforts being made to expand stakeholder engagement with CFIUS with the aim of enhancing and evolving the Committee’s processes while maintaining our longstanding commitment to open investment and protecting U.S. national security.”
Seeking Broader Input on Reform
The RFI isn’t limited to just the Known Investor Program. Treasury is casting a wider net, soliciting feedback on multiple aspects of CFIUS operations, including case reviews, non-notified transactions, mitigation measures, and monitoring and enforcement processes.
These areas represent the full lifecycle of CFIUS’s oversight functions — from identifying transactions that weren’t voluntarily submitted for review to imposing and enforcing conditions on deals that raise concerns but aren’t blocked outright.
Stakeholders have until March 18, 2026, to submit their comments and recommendations. The extended timeline suggests Treasury anticipates substantial input from the business, legal, and security communities.
“It would entail CFIUS collecting information from foreign investors who choose to participate in advance of receiving a formal filing with the aim of increasing efficiencies in the national security-related due diligence process,” the Treasury explained regarding the Known Investor Program’s mechanics.
Balancing Act: Security and Investment
The proposed reforms come at a time when the U.S. is navigating complex economic relationships with allies and strategic competitors alike. CFIUS has faced criticism from some quarters for creating uncertainty in cross-border deals, while others have pressed for even more stringent reviews of foreign acquisitions.
Could a more efficient process actually strengthen national security? That’s part of the calculation. By streamlining reviews for investors from allied nations, CFIUS could theoretically focus more resources on transactions that genuinely warrant deeper scrutiny.
The committee itself is a complex entity, described as “an interagency committee—comprised of multiple U.S. Government departments and agencies—that plays a critical role in reviewing certain transactions involving foreign investment into U.S. businesses and U.S. real estate in order to determine the effect of such transactions on the national security of the United States.”
As Treasury moves forward with potential reforms, the challenge will be maintaining CFIUS’s effectiveness as a security safeguard while not unduly deterring the foreign capital that has long been a pillar of American economic growth. The comment period now underway may reveal just how difficult that balance remains to achieve.
