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FIRRMA FAQs

General FAQs

• What is FIRRMA?

On August 13, 2018, the President signed into law the Foreign Investment Risk Review 

Modernization Act of 2018, or FIRRMA. FIRRMA strengthens and modernizes the Committee 

on Foreign Investment in the United States, or CFIUS, a multi-agency government body chaired 

by the Secretary of the Treasury that reviews foreign investment for national security 

considerations.

• Why was FIRRMA necessary?

By modernizing CFIUS, FIRRMA strengthens the government’s ability to protect national 

security while preserving the longstanding open investment policy of the United States. At its 

core, FIRRMA expands the scope of transactions reviewable by CFIUS to address more 

effectively current national security concerns. CFIUS was last updated more than a decade ago

and its jurisdiction has remained unchanged in the 30 years since Congress first passed the ExonFlorio Amendment, which created Section 721 of the Defense Production Act of 1950, the 

statutory cornerstone of CFIUS. Both the nature of foreign investments in the United States and 

the national security landscape have shifted significantly since then.

• Will CFIUS continue to focus solely on national security? Does FIRRMA expand 

CFIUS beyond national security to include economic issues?

CFIUS remains focused exclusively on national security. CFIUS examines the effects of a 

transaction and assesses the impact of those effects on the national security of the United States. 

FIRRMA will help CFIUS protect our national security from emerging risks.

• To whom does the new legislation apply? Is it country-specific?

Like prior CFIUS legislation, FIRRMA does not single out any specific country. CFIUS’s 

authorities may be applied to address the national security risks posed by foreign investment in 

the United States, regardless of where the investment originates.

• How will FIRRMA affect investment from countries that are allies and partners of the 

United States?

The United States has a longstanding open investment policy, and we maintain strong 

relationships with our allies and partners on investment. We expect FIRRMA to strengthen these

relationships by enabling the United States to work more closely with allies and partners on 

national security issues related to investment. This will enhance confidence in investments made 

by those allies and partners in the United States now and in the future.
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• Is the United States still open to foreign investment?

The United States welcomes foreign investment and continues to be one of the most open 

countries in the world to foreign investors. The United States is also the best place to invest

worldwide, having adopted strong economic growth policies—including a new, low corporate 

tax rate and in the elimination of many ineffective regulations—and maintaining a strong

innovation ecosystem and a highly developed market. We expect the CFIUS process, as 

modernized and strengthened by FIRRMA, will enhance confidence in the Nation’s longstanding 

open investment policy by continuing to restrict only those foreign investments that pose 

national security concerns.

• Can foreign investors still make investments in the United States in the technology 

industry?

The United States welcomes foreign investment in the technology industry, and maintains a 

strong commitment to the rule of law and the protection of intellectual property. The United 

States provides unique opportunities to tap into advanced research and innovation and a skilled, 

energized, and optimistic workforce. FIRRMA does not change this. CFIUS will continue to 

assess, on a case-by-case basis, whether a particular transaction (regardless of industry) poses a

risk to U.S. national security.

FAQs Regarding Filings

• FIRRMA expands the scope of transactions that CFIUS can review. When is the 

expanded jurisdiction effective?

Certain provisions of FIRRMA took effect immediately while others, including some related to 

the expanded scope of CFIUS, will take effect at a later date. On October 11, 2018, the Treasury 

Department, as chair of CFIUS, published interim regulations implementing a pilot program, as 

authorized under FIRRMA, to review certain transactions involving foreign persons and critical 

technologies. This pilot program takes effect on November 10, 2018, and will end no later than 

the date on which the full regulations implementing FIRRMA become effective and in no event 

later than the date that is 570 days after the enactment of FIRRMA (i.e., March 5, 2020). In a 

separate set of interim regulations also published on October 11, 2018, the Treasury Department 

made certain amendments to 31 CFR part 800 to implement and make updates consistent with 

certain provisions of FIRRMA. Both sets of interim regulations and related documents are 

available at https://home.treasury.gov/policy-issues/international/the-committee-on-foreigninvestment-in-the-united-states-cfius.
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• My transaction would be subject to a mandatory declaration under FIRRMA. Am I 

now required to file a declaration with CFIUS?

The pilot program, which goes into effect on November 10, 2018, requires declarations for 

certain transactions involving investments by foreign persons in certain U.S. businesses that 

produce, design, test, manufacture, fabricate, or develop one or more critical technologies. All 

foreign investment that falls within the specific scope of the pilot program is subject to the 

mandatory filing requirement pursuant to 31 CFR 801.401. Transactions that do not fall within 

the scope of the pilot program are not required to file declarations at this time.

• May I file a voluntary declaration?

CFIUS is not yet accepting voluntary declarations. 

• Has CFIUS’s timeline for reviews changed? 

Yes. The timeline for CFIUS reviews changed upon enactment of FIRRMA. The review period 

for any notice accepted after FIRRMA became effective will be a maximum of 45 days, rather 

than 30 days. If an investigation is required, it will commence no later than the end of the 45-

day review period prescribed by FIRRMA. Notices that were accepted on or before the effective 

date of FIRRMA will remain subject to a 30-day review period. The interim regulations 

published on October 11, 2018, amended 31 CFR part 800 to reflect the updated timeline for 

reviews. 

• Has CFIUS’s timeline for investigations changed? 

Yes. The timeline for investigations has been updated to allow the Treasury Secretary to grant 

one 15-day extension (i.e., extending investigations from 45 to 60 days) in “extraordinary 

circumstances.” This applies to notices filed on or after October 11, 2018.

• Will stipulations be accepted? What is the effect of stipulation?

Yes. Both sets of interim regulations—the regulations implementing the pilot program and the 

regulations updating part 800—allow for stipulations. In general, a stipulation could expedite 

review and action by CFIUS because it may streamline certain aspects of CFIUS’s review. It 

may also result in fewer follow-up questions from the Committee. In the case of a pilot program 

covered transaction filed through a notice, stipulating control will reduce certain information 

requirements. 

Parties submitting a stipulation should be aware that the Committee and the President are entitled 

to rely on such stipulation in determining whether the transaction is covered under the relevant 

regulations and/or a foreign government-controlled transaction, and parties making a stipulation 

waive the right to challenge any such determination. Additionally, neither the Committee nor the 

President is bound by any such stipulation, nor does any such stipulation limit the ability of the 

Committee or the President to act on any authority provided under section 721 with respect to 

any covered transaction. 
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• Do parties now need to pay a filing fee?

CFIUS is not yet requiring a filing fee. CFIUS will provide guidance on the implementation of 

filing fees. 

• What are “pilot programs” and how will “pilot programs” change the CFIUS process?

FIRRMA allows CFIUS to conduct pilot programs to implement provisions of the legislation 

that were not immediately effective. Information on the pilot program related to critical 

technologies is available at https://home.treasury.gov/policy-issues/international/the-committeeon-foreign-investment-in-the-united-states-cfius.

• How long is it going to take to implement FIRRMA?

Several provisions of FIRRMA took effect immediately, while others may take up to 18 months 

from the date of enactment to take effect. As noted above, the Treasury Department has 

published interim regulations implementing certain provisions of FIRRMA.