S.Amdt. 5880

SA 5880. Mr. McCORMICK (for himself and Mr. Hagerty) submitted an
amendment intended to be proposed by him to the bill S. 4784, to
authorize appropriations for fiscal year 2027 for military activities
of the Department of Defense, for military construction, and for
defense activities of the Department of Energy, to prescribe military
personnel strengths for such fiscal year, and for other purposes; which
was ordered to lie on the table; as follows:

At the end of division A, add the following:

TITLE XVII--COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED STATES

SEC. 1701. SHORT TITLE.

This subtitle may be cited as the ``CFIUS Modernization Act
of 2026''.

SEC. 1702. STRENGTHENING AUTHORITIES AND PROCESSES OF
COMMITTEE ON FOREIGN INVESTMENT IN THE UNITED
STATES.

(a) Revision of Term ``Urbanized Areas''.--Section
721(a)(4)(C)(i)(II) of the Defense Production Act of 1950 (50
U.S.C. 4565(a)(4)(C)(i)(II)) is amended by striking ``real
estate in `urbanized areas' '' and inserting ``real estate in
an `urban area' or any equivalent term or terms''.
(b) Amendment to the Definition of ``Critical
Technologies''.--Section 721(a)(6)(A) of the Defense
Production Act of 1950 (50 U.S.C. 4565(a)(6)(A) is amended by
adding at the end the following:
``(vii) Other technologies designated by the chairperson,
in consultation with the Director of the Office of Science
and Technology Policy and other members of the Committee,
from the areas identified on the Critical and Emerging
Technologies List published by the National Science and
Technology Council.''.
(c) Removal of 5-page Limitation for Declarations.--Section
721(b)(1)(C)(v)(II) of the Defense Production Act of 1950 (50
U.S.C. 4565(b)(1)(C)(v)(II)) is amended by striking ``that
would not generally exceed 5 pages in length''.
(d) Alignment of Timing of Committee Action With Respect to
Declarations and Notices.--Section 721(b)(1)(C)(v)(III)(bb)
of the Defense Production Act of 1950 (50 U.S.C.
4565(b)(1)(C)(v)(III)(bb)) is amended by striking
``receiving'' and inserting ``accepting''.
(e) Authorization to Require Mandatory Declarations for
Critical Infrastructure Transactions.--Section
721(b)(1)(C)(v)(IV)(cc) of the Defense Production Act of 1950
(50 U.S.C. 4565(b)(1)(C)(v)(IV)(cc)) is amended by striking
``subsection (a)(4)(B)(iii)(II)'' and inserting ``subclause
(I) or (II) of subsection (a)(4)(B)(iii)''.
(f) Stipulations Regarding Non-notified or Non-declared
Transactions.--Section 721(b)(1)(C)(vi)(I) of the Defense
Production Act of 1950 (50 U.S.C. 4565(b)(1)(C)(vi)(I)) is
amended, in the matter preceding item (aa), by inserting ``,
or in connection with a non-notified or non-declared
transaction identified under subparagraph (H)'' after ``with
respect to a transaction''.
(g) Determination Regarding Investigations for Foreign
Government-controlled Transactions.--Section 721(b)(2)(D)(ii)
of the Defense Production Act of 1950 (50 U.S.C.
4565(b)(2)(D)(ii)) is amended by striking ``to any person''
and all that follows and inserting ``below the level of the
Assistant Secretary of the Treasury or an equivalent official
of the lead agency, respectively.''.
(h) Modification of Tolling of Deadlines During a Lapse in
Appropriations.--Section 721(b) of the Defense Production Act
of 1950 (50 U.S.C. 4565(b)) is amended by striking paragraph
(8) and inserting the following:
``(8) Tolling of deadlines during lapse in
appropriations.--Any deadline or time limitation imposed on
the Committee or to which the Committee is subject under this
section, regulations implementing this section, or any
agreement or condition entered into or imposed under this
section, shall be tolled during a lapse in appropriations.''.
(i) Revision of Confidentiality Requirements to Enhance
Cooperation on National Security With Allies and Partners of
the United States and Authorize Disclosure of Enforcement
Information.--Section 721(c) of the Defense Production Act of
1950 (50 U.S.C. 4565(c)) is amended--
(1) in paragraph (2)--
(A) in subparagraph (A), by inserting ``domestic or
foreign'' before ``administrative'';
(B) in subparagraph (C), by striking ``, or to any foreign
governmental entity of a United States ally or partner,'' ;

[[Page S2971]]

(C) by redesignating subparagraph (D) as subparagraph (E);
and
(D) by inserting after subparagraph (C), the following:
``(D) Information important to the national security
analysis or actions of the Committee or any foreign
governmental entity of a United States ally or partner, to
such ally or partner, under the exclusive direction and
authorization of the chairperson, only to the extent
necessary for national security purposes, and subject to
appropriate confidentiality and classification
requirements.''; and
(E) by inserting after subparagraph (E) the following:
``(F) Information describing the outcome of a concluded
enforcement action (including any final or settled penalty)
under this section, including the identity of any party to,
and a description of the circumstances that resulted in, such
action, when disclosed by the chairperson.''; and
(2) in paragraph (3)(A), by striking ``paragraph (2)(C)''
and inserting ``paragraph (2)(D)''.
(j) Clarification of Authority to Prohibit Real Estate
Transactions.--Section 721(d)(4)(A) of the Defense Production
Act of 1950 (50 U.S.C. 4565(d)(4)(A)) is amended by inserting
``or obtain an interest in real estate in the United States''
after ``a United States business or its assets''.
(k) Technical Corrections.--Section 721 of the Defense
Production Act of 1950 (50 U.S.C. 4565) is amended--
(1) in subsection (b)(1)(C)(v)(IV)(gg), by striking
``subsection (h)(3)'' and inserting ``subsection (h)(2)'';
and
(2) in subsection (l)(6)(D), by striking ``subsection
(h)(3)'' and inserting ``subsection (h)(2)''.
(l) Interim Measures for Proposed, Pending, or Completed
Covered Transactions.--Section 721(l)(3)(A)(iii) of the
Defense Production Act of 1950 (50 U.S.C. 4565(l)(3)(A)(iii))
is amended--
(1) in the clause heading, by striking ``Agreements and
conditions relating to completed transactions'' and inserting
``Interim measures''; and
(2) by striking ``completed covered transaction'' and
inserting ``proposed, pending, or completed covered
transaction''.
(m) Appropriations for Committee.--Section 721(p)(2) of the
Defense Production Act of 1950 (50 U.S.C. 4565(p)(2)) is
amended by striking ``through 2023'' and inserting ``through
2030''.

SEC. 1703. KNOWN INVESTOR PROGRAM.

(a) In General.--Section 721 of the Defense Production Act
of 1950 ( 50 U.S.C. 4565) is amended by adding at the end the
following:
``(r) Known Investor Program.--
``(1) In general.--The chairperson may establish a program,
to be known as the `Known Investor Program', under which--
``(A) a foreign person may voluntarily provide information
to the Committee in advance of filing a notice under clause
(i) of subsection (b)(1)(C) or a declaration under clause (v)
of that subsection with respect to a transaction; and
``(B) the Committee may, for foreign persons that have
provided information under subparagraph (A)--
``(i) limit the applicability of the requirement to submit
a mandatory declaration under subsection (b)(1)(C)(v)(IV);
and
``(ii) increase efficiencies in the process of submitting
notices and declarations.
``(2) Implementation authorities.--In carrying out the
Known Investor Program, the chairperson may--
``(A) identify the information required for the Committee
to consider a foreign person under the Known Investor
Program;
``(B) require certification and assurance for the
information provided in advance of filing a notice or
declaration, consistent with subsection (n);
``(C) allocate personnel and resources to support the Known
Investor Program; and
``(D) make such adjustments to the requirements or process
for filing notices and declarations as the chairperson
considers appropriate.
``(3) Fees.--
``(A) In general.--The Committee may assess and collect,
from each foreign person considered under the Known Investor
Program, a fee to be deposited into the Committee on Foreign
Investment in the United States Fund established under
subsection (p).
``(B) Terms and conditions.--A fee assessed and collected
under subparagraph (A) shall be subject to the same terms and
conditions as a fee assessed and collected under subsection
(p)(3).
``(4) Cooperation of other agencies.--Upon request from the
chairperson, the head of a Federal agency shall provide
support and cooperation to the chairperson to carry out the
Known Investor Program.''.
(b) Regulations.--The Committee on Foreign Investment in
the United States shall prescribe such regulations as are
necessary to implement the Known Investor Program under
subsection (r) of section 721 of the Defense Production Act
of 1950, as added by subsection (a), including regulations--
(1) providing for the application of the requirements of
subsection (c) of such section 721 with respect to
information provided to the Committee under the Program; and
(2) expressly providing for the application of section 1001
of title 18, United States Code, to all information provided
to the Committee under the Program, in accordance with
subsection (n)(3) of such section 721.

SEC. 1704. PILOT PROGRAM TO COLLECT INFORMATION ON GREENFIELD
INVESTMENTS BY FOREIGN PERSONS IN STRATEGIC
SECTORS.

(a) In General.--The Secretary shall establish a pilot
program to require the submission to the Committee on Foreign
Investment in the United States of a short-form written
notification of any greenfield investment in the United
States by a foreign person in a strategic sector for the
purpose of collecting information on such investment.
(b) Duration of Pilot Program.--The pilot program required
by subsection (a) shall terminate on the date that is 2 years
after the date of the enactment of this Act.
(c) Treatment of Investments That Are Not Covered
Transactions.--In the case of a greenfield investment that is
not a covered transaction and with respect to which a
notification is submitted under the pilot program required by
subsection (a), the Committee--
(1) shall not review the investment under section 721(b) of
the Defense Production Act of 1950 (50 U.S.C. 4565(b)) as if
it were a covered transaction; and
(2) shall use the notification only to collect information
on greenfield investment in the United States.
(d) Exemption From Disclosure.--Except as provided in
regulations prescribed under subsection (e), any information
or documentary material filed with the Secretary or a
designee of the Secretary under the pilot program required by
subsection (a) shall be exempt from disclosure under section
552(b)(3) of title 5, United States Code, and no such
information or documentary material may be made public.
(e) Regulations.--In establishing the pilot program
required by subsection (a), the Secretary, in consultation
with the Committee, shall prescribe regulations in accordance
with section 553 of title 5, United States Code, that--
(1) establish the scope of the pilot program;
(2) define relevant terms, including ``greenfield
investment'', and add sectors to the definition of
``strategic sector'', as the Secretary considers appropriate;
(3) identify the information required to be included in a
notification submitted under the pilot program;
(4) include a process by which the Committee may identify a
greenfield investment in the United States by a foreign
person in a strategic sector for which a notification is not
submitted; and
(5) provide for the imposition of civil penalties for any
violation of the requirement to submit notifications under
the pilot program.
(f) Report to Congress.--
(1) In general.--After the termination under subsection (b)
of the pilot program required by subsection (a), the
Secretary, in consultation with the Committee, shall submit
to the members of Congress specified in section
721(b)(3)(C)(iii) of the Defense Production Act of 1950 (50
U.S.C. 4565(b)(3)(C)(iii)) a report that includes--
(A) an assessment of the information on greenfield
investment in the United States by foreign persons in
strategic sectors collected under the pilot program; and
(B) an analysis of--
(i) the extent to which existing authorities address the
national security risks, if any, that could arise from
greenfield investment described in subparagraph (A); and
(ii) whether the establishment or expansion of other
Federal programs should be undertaken to address any such
risks.
(2) Form.--The report required by paragraph (1) shall be
submitted in unclassified form, but may include a classified
annex.
(g) Rule of Construction.--Nothing in this section may be
construed to impair or otherwise affect the authority of the
President to pursue any authorization, process, regulation,
investigation, prohibition, enforcement measure, or review
provided by or established under any other provision of
Federal law, including the International Emergency Economic
Powers Act (50 U.S.C. 1701 et seq.), section 721 of the
Defense Production Act of 1950 (50 U.S.C. 4565), or any other
authority of the President or Congress under the Constitution
of the United States, to protect the national security of the
United States.
(h) Definitions.--In this section:
(1) Covered transaction.--The term ``covered transaction''
has the meaning given that term in section 721(a) of the
Defense Production Act of 1950 (50 U.S.C. 4565(a)).
(2) Greenfield investment.--The term ``greenfield
investment'' has the meaning given that term in regulations
prescribed under subsection (f).
(3) Secretary.--The term ``Secretary'' means the Secretary
of the Treasury, as the chairperson of the Committee on
Foreign Investment in the United States.
(4) Strategic sector.--The term ``strategic sector''
means--
(A) the technology, critical infrastructure, healthcare,
agriculture, energy, and raw materials sectors; and
(B) such other sectors as are determined to be strategic in
regulations prescribed under subsection (e).
______