Trump Administration’s America First Policy: The Impact on CFIUS Jurisdiction

The Trump Administration’s “America First Investment Policy” has reshaped the Committee on Foreign Investment in the United States (CFIUS) process by imposing stricter restrictions on investments from foreign adversaries while encouraging investments from allied nations. Issued through a National Security Presidential Memorandum (NSPM) on February 21, 2025, this policy represents a significant shift in U.S. foreign investment regulations, with far-reaching implications for national security and cross-border transactions.

Key Components of the Policy

• Enhanced Scrutiny of Adversary Investments
  CFIUS oversight has been strengthened, imposing tighter controls on investments from adversaries like China and Russia in critical sectors such as technology, infrastructure, and energy. Its authority now extends to greenfield investments, with added protections for U.S. farmland and real estate near sensitive sites. Additionally, restrictions on adversarial access to emerging technologies like AI aim to safeguard U.S. talent and operations.

• Fast-Track Process for Allied Investments
  A new fast-track process streamlines investments from allied nations, fostering U.S. growth in advanced technologies while ensuring independence from foreign adversaries. Additionally, environmental reviews for investments exceeding $1 billion will be expedited to ease regulatory burdens.

• Passive Investments Encouraged
  Passive investments from all foreign sources are welcomed, allowing non-controlling stakes with no governance or decision-making influence. This approach aims to expand capital access for U.S. companies while mitigating national security risks.

• Mitigation Agreements Reform
  Mitigation agreements are being restructured, replacing complex, open-ended terms with clear, time-limited actions. This shift seeks to streamline the process for friendly investors while ensuring strong national security protections.

• Expanded CFIUS Jurisdiction
  CFIUS jurisdiction has been expanded to include emerging and foundational technologies, such as AI, and greenfield investments in sensitive sectors. It also enhances oversight of real estate acquisitions near sensitive sites, potentially leading to more mandatory CFIUS filings.

Implications for Lawyers and Businesses

• Strategic Planning: Lawyers advising on foreign investments should consider the enhanced scrutiny of investments from adversary countries and the fast-track process for allied nations, while emphasizing the policy’s focus on national security and the distinction between allied and adversarial investments.
• Compliance: Understanding the new rules on mitigation agreements and the fast-track process will be crucial for navigating the evolving CFIUS regulations and ensuring compliance.
• Sector-Specific Restrictions: Legal teams should assess CFIUS scrutiny in sensitive sectors like technology and agriculture, advising clients on sector-specific restrictions and mitigation strategies.

The America First Investment Policy signals a major transformation in U.S. foreign investment regulations, reinforcing national security protections while streamlining opportunities for allied investments. As CFIUS oversight expands and new compliance measures take shape, businesses and investors must stay informed to navigate these evolving regulations.