On September 17, 2019, the Committee on Foreign Investment in the United States (“CFIUS”) published two Proposed Rules to implement most of the Foreign Investment Risk Review Modernization Act of 2018 (“FIRRMA”). CFIUS is an interagency committee that reviews foreign investments and makes recommendations regarding whether such transactions should be unwound, blocked, or subject to mitigation due to national security concerns. FIRRMA is the first major expansion to CFIUS’ jurisdiction and powers in a decade.

One Proposed Rule will expand CFIUS’ jurisdiction to certain noncontrolling foreign investments in US businesses involving critical technology, critical infrastructure, and sensitive personal data (“TID businesses”) (“TID Proposed Rule”). The other Proposed Rule will expand CFIUS’ jurisdiction to certain foreign investments in US real estate when the transaction does not result in foreign control over a US business (“Real Estate Proposed Rule”).