Senator Toomey Warns Proposed Outbound CFIUS Act Could Harm National Security

At a Senate Banking Committee hearing, Ranking Member Pat Toomey (R-PA) voiced numerous concerns about the proposed National Critical Capabilities Act, also known as "outbound CFIUS."

The legislation would provide for the creation of a Committee on National Critical Capabilities that would have jurisdiction to review certain transactions that shift or relocate the design, development, production, manufacture, supply, servicing, testing, management, operation, investment, ownership, or any other essential elements involving of one or more "national critical capabilities" to a country or entity of concern.

Mr. Toomey said that the current concept "establishes a new agency within the executive branch, and gives this agency vast, potentially unchecked authority to regulate, intervene in and block all kinds of potential activities." He asserted that, if enacted, the National Critical Capabilities Act would:

• impede the mission and workflow of other national security agencies;
• disincentivize and prevent the flow of capital to and from companies in other countries;
• empower the president to determine which industries are subject to regulations; and
• negatively impact the U.S. economy.