U.S. Chamber of Commerce - February 28 - Chamber Applauds House Passage of CFIUS Reform Bill

WASHINGTON, DC-The U.S. Chamber of Commerce today applauded the U.S. House of Representatives for passing H.R. 556, the National Security Foreign Investment Reform and Strengthened Transparency Act of 2007. Passage of this bill is one of the Chamber's top legislative priorities in the 110th Congress.

"This bill strikes an appropriate balance between keeping Americans safe and keeping our economy open to the world," said Bruce Josten, Chamber executive vice president. "We can't expect other countries to welcome U.S. investment if we discourage theirs. We urge the Senate to follow the balanced model for reform adopted by the House."

House Financial Services Chairman Barney Frank (D-MA), Ranking Member Spencer Bachus (R-AL), Minority Whip Roy Blunt (R-MO) and Reps. Carolyn Maloney (D-NY), Deborah Pryce (R-OH), and Joseph Crowley (D-NY) were critical to ensuring that the bill improve national security without discouraging foreign direct investment in the United States.

The Chamber supports Committee on Foreign Investment (CFIUS) reforms that balance the need to attract foreign investment to the U.S. market with the need to guard against foreign acquisitions that threaten national security. According to the Chamber, H.R. 556 meets both of those priorities by adding transparency to the CFIUS foreign investment review process and establishing a clearer timeline for non-controversial acquisitions. Further, the bill would codify the CFIUS into law and mandate that it provide regular reporting to Congress.

Foreign investment in the United States supports more than 5 million jobs and promotes economic growth. In 2005, foreign investors poured more than $110 billion into the United States, providing U.S. firms with capital for expansion of production facilities and increased R&D spending.