Hill Negotiators Reach Deal on CFIUS Revamp Language in FY 2019 NDAA

Capitol Hill negotiators reached a deal to modify the language from the Foreign Investment Risk Review Modernization Act (HR-4311/S-2098) attached to the FY 2019 National Defense Authorization Act (HR-5515), Senate Majority Whip John Cornyn, R-Texas, told reporters Thursday. HR-4311/S-2098 would expand the scope of the Committee on Foreign Investment in the U.S. to probe more investments, including in "critical" technology or infrastructure companies (see 1804260029). The modifications are aimed at easing critics' concerns that the CFIUS revamp would excessively restrict foreign investment in U.S. companies, Cornyn said. House Financial Services Committee Chairman Jeb Hensarling, R-Texas, who threatened to derail inclusion of HR-4311/S-2098 in HR-5515, apparently signed off on proposed alterations to the text, two Hill aides told us. Advancement of the bill as part of HR-5515 became entangled with efforts to limit President Donald Trump's ability to lift or otherwise weaken a Department of Commerce-imposed ban on U.S. companies selling telecom software and equipment to ZTE (see 1806270066). Commerce formally lifted the ZTE ban last week (see 1807130048).