Warren, Cortez Masto, Schumer, Bennet, Kim Call for Secretary Bessent to Provide Greater Transparency on Administration's Implementation of Outbound Investment Security Program

As Congress negotiates the National Defense Authorization Act (NDAA), senators raise concerns about Administration's failure to provide information about its review and implementation of the outbound investment security program

Bipartisan amendmentto address outbound investment in certain technologies in China passed Senate NDAA last month

Text of Letter (PDF)

Washington, D.C. - Ahead of Congress finalizing the National Defense Authorization Act (NDAA), U.S. Senators Elizabeth Warren (D-Mass.), Ranking Member of the Senate Banking, Housing, and Urban Affairs Committee, Catherine Cortez Masto (D-NV), Michael Bennet (D-CO), and Andy Kim (D-NJ) along with Senate Minority Leader Chuck Schumer (D-NY) sent a letter to Treasury Secretary Scott Bessent requesting information about how the Trump Administration has implemented the outbound investment screening program, which is designed to ensure that the United States avoids contributing to the development of sensitive technologies in the People's Republic of China and other countries of concern.

"Outbound investment screening is a critical part of our national security framework," wrote the Democratic Senators. "This key program was designed to ensure that U.S. firms do not contribute to the development of sensitive technologies-including artificial intelligence, semiconductors, and biotechnology-in the People's Republic of China and other countries of concern. . . . Treasury issued regulations prohibiting transactions involving quantum computing, supercomputers, advanced semiconductor technology, and foundational AI-and required investors to notify Treasury when engaging in other transactions, including commercial AI applications and legacy semiconductor technology."

They continued: "Shortly after taking office, President Trump directed a review of the program and asked you to make recommendations about potential modifications by April 1, 2025. That review was due more than six months ago, but Treasury has yet to publicize details or provide any reports to Congress. President Trump also promised in February to 'adopt new rules' to safeguard American innovation, but none have been proposed or published. This lack of transparency raises questions about both the direction of outbound investment screening and your commitment to the program."

The letter emphasizes the longstanding bipartisan support for addressing the role of outbound U.S. investments in accelerating the development of critical technologies that have military and intelligence applications. For example, a bipartisan group of senators introduced the Foreign Investment Guardrails to Help Thwart (FIGHT) China Act, a version of which passed the Senate by voice vote on its NDAA bill on October 9.

The Senators concluded by requesting specific information on the Administration's implementation of the outbound investment screening program no later than November 19, 2025, to inform Congress's ongoing efforts to codify the program as part of the NDAA.

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