cy, as the case may be, shall formulate, ad-
here to, and keep updated a plan for moni-
toring compliance with the agreement. 
‘‘(ii) ELEMENTS.—Each plan required 
by clause (i) with respect to an agreement 
entered into under paragraph (3)(A) shall 
include an explanation of— 
‘‘(I) which member of the Com-
mittee will have primary responsibility 
for monitoring compliance with the 
agreement; 
‘‘(II) how compliance with the 
agreement will be monitored; 
‘‘(III) how frequently compliance 
reviews will be conducted; 
‘‘(IV) whether an independent 
entity will be utilized under subpara-
graph (E) to conduct compliance re-
views; and 
‘‘(V) what actions will be taken if 
the parties fail to cooperate regarding 
monitoring compliance with the agree-
ment. 
‘‘(D) EFFECT OF LACK OF COMPLIANCE.— 
If, at any time after a mitigation agreement or 
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condition is entered into or imposed under 
paragraph (3)(A), the Committee or lead agen-
cy, as the case may be, determines that a party 
or parties to the agreement or condition are not 
in compliance with the terms of the agreement 
or condition, the Committee or lead agency 
may, in addition to the authority of the Com-
mittee to impose penalties pursuant to sub-
section (h)(3) and to unilaterally initiate a re-
view of any covered transaction under sub-
section (b)(1)(D)(iii)(I)— 
‘‘(i) negotiate a plan of action for the 
party or parties to remediate the lack of 
compliance, with failure to abide by the 
plan or otherwise remediate the lack of 
compliance serving as the basis for the 
Committee to find a material breach of the 
agreement or condition; 
‘‘(ii) require that the party or parties 
submit any covered transaction initiated 
after the date of the determination of non-
compliance and before the date that is 5 
years after the date of the determination 
to the Committee for review under sub-
section (b); or 
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‘‘(iii) seek injunctive relief. 
‘‘(E) USE OF INDEPENDENT ENTITIES TO 
MONITOR
COMPLIANCE.—If the parties to an 
agreement entered into under paragraph (3)(A) 
enter into a contract with an independent entity 
from outside the United States Government for 
the purpose of monitoring compliance with the 
agreement, the Committee shall take such ac-
tion as is necessary to prevent a conflict of in-
terest from arising by ensuring that the inde-
pendent entity owes no fiduciary duty to the 
parties. 
‘‘(F) ADDITIONAL
COMPLIANCE
MEAS-
URES.—Subject to subparagraphs (A) through 
(E), the Committee shall develop and agree 
upon methods for evaluating compliance with 
any agreement entered into or condition im-
posed with respect to a covered transaction that 
will allow the Committee to adequately ensure 
compliance 
without 
unnecessarily 
diverting 
Committee resources from assessing any new 
covered transaction for which a written notice 
under clause (i) of subsection (b)(1)(C) or dec-
laration under clause (v) of that subsection has 
been filed, and if necessary, reaching a mitiga-
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tion agreement with or imposing a condition on 
a party to such covered transaction or any cov-
ered transaction for which a review has been re-
opened for any reason.’’. 
SEC. 17. MODIFICATION OF ANNUAL REPORT. 
Section 721(m) of the Defense Production Act of 
1950 (50 U.S.C. 4565(m)) is amended— 
(1) in paragraph (1), by striking ‘‘committee’’ 
and all that follows through ‘‘Representatives,’’ and 
inserting ‘‘appropriate congressional committees’’; 
(2) in paragraph (2)— 
(A) by amending subparagraph (A) to read 
as follows: 
‘‘(A) A list of all notices filed and all re-
views or investigations of covered transactions 
completed during the period, with— 
‘‘(i) a description of the outcome of 
each review or investigation, including 
whether an agreement was entered into or 
condition was imposed under subsection 
(l)(3)(A) with respect to the transaction 
being reviewed or investigated, and wheth-
er the President took any action under this 
section with respect to that transaction; 
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‘‘(ii) basic information on each party 
to each such transaction; 
‘‘(iii) the nature of the business activi-
ties or products of the United States busi-
ness with which the transaction was en-
tered into or intended to be entered into; 
and 
‘‘(iv) information about any with-
drawal from the process.’’; 
(B) by adding at the end the following: 
‘‘(G) Statistics on compliance reviews con-
ducted and actions taken by the Committee 
under subsection (l)(6), including subparagraph 
(D) of that subsection, during that period and 
a description of any actions taken by the Com-
mittee to impose penalties or initiate a unilat-
eral 
review 
pursuant 
to 
subsection 
(b)(1)(D)(iii)(I).’’; 
(3) in paragraph (3)— 
(A) by striking ‘‘CRITICAL TECHNOLOGIES’’ 
and all that follows through ‘‘In order to as-
sist’’ 
and 
inserting 
‘‘CRITICAL
TECH-
NOLOGIES.—In order to assist’’; 
(B) by striking subparagraph (B); and 
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(C) by redesignating clauses (i) and (ii) as 
subparagraphs (A) and (B), respectively, and 
by moving such subparagraphs, as so redesig-
nated, 2 ems to the left; and 
(4) by adding at the end the following: 
‘‘(4) BIENNIAL INTELLIGENCE COMMUNITY RE-
PORT.— 
‘‘(A) IN GENERAL.—The Director of Na-
tional Intelligence shall transmit to the chair-
person, for inclusion in a classified portion of 
each report required to be submitted under 
paragraph (1) during calendar year 2018 and 
every even-numbered year thereafter, the report 
of the interagency group established under sub-
paragraph (C). 
‘‘(B) ELEMENTS.—The report referred to 
in subparagraph (A) shall include an identifica-
tion, analysis, and explanation of the following: 
‘‘(i) Any current or projected major 
threats to the national security of the 
United States with respect to foreign in-
vestment. 
‘‘(ii) Any strategies used by countries 
of special concern to utilize foreign invest-
ment to target the acquisition of critical 
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technologies, critical materials, or critical 
infrastructure. 
‘‘(iii) Any economic espionage efforts 
directed at the United States by a foreign 
country, particularly a country of special 
concern. 
‘‘(C) INTELLIGENCE
COMMUNITY
INTER-
AGENCY
WORKING
GROUP.—The Director of 
National Intelligence— 
‘‘(i) shall establish an interagency 
working group, composed of representa-
tives of elements of the intelligence com-
munity, to prepare the report required 
under this paragraph; 
‘‘(ii) shall serve as the chairperson of 
the interagency working group; and 
‘‘(iii) may consult with and seek input 
from any member of the Committee, as the 
Director considers necessary. 
‘‘(5) CLASSIFICATION; AVAILABILITY
OF
RE-
PORT.— 
‘‘(A) 
CLASSIFICATION.—All 
appropriate 
portions of the annual report required by para-
graph (1) may be classified. 
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‘‘(B) PUBLIC AVAILABILITY OF UNCLASSI-
FIED VERSION.—An unclassified version of the 
report required by paragraph (1), as appro-
priate and consistent with safeguarding na-
tional security and privacy, shall be made avail-
able to the public. Information regarding trade 
secrets or business confidential information may 
be included in the classified version and may 
not be made available to the public in the un-
classified version. 
‘‘(C) EXCEPTIONS TO FREEDOM OF INFOR-
MATION ACT.—The exceptions to subsection (a) 
of section 552 of title 5, United States Code, 
provided for under subsection (b) of that sec-
tion shall apply with respect to the report re-
quired by paragraph (1). 
‘‘(6) APPROPRIATE
CONGRESSIONAL
COMMIT-
TEES DEFINED.—In this subsection, the term ‘ap-
propriate congressional committees’ means— 
‘‘(A) the Committee on Banking, Housing, 
and Urban Affairs, the Select Committee on In-
telligence, the Committee on Armed Services, 
the Committee on the Judiciary, and the Com-
mittee on Homeland Security and Govern-
mental Affairs of the Senate; and 
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‘‘(B) the Committee on Financial Services, 
the Permanent Select Committee on Intel-
ligence, the Committee on Armed Services, the 
Committee on the Judiciary, and the Com-
mittee on Homeland Security of the House of 
Representatives.’’. 
SEC. 18. CERTIFICATION OF NOTICES AND INFORMATION. 
Section 721(n) of the Defense Production Act of 
1950 (50 U.S.C. 4565(n)) is amended— 
(1) by redesignating paragraphs (1) and (2) as 
subparagraphs (A) and (B), respectively, and by 
moving such subparagraphs, as so redesignated, 2 
ems to the right; 
(2) by striking ‘‘Each notice’’ and inserting the 
following: 
‘‘(1) IN GENERAL.—Each notice’’; and 
(3) by adding at the end the following: 
‘‘(2) EFFECT OF FAILURE TO SUBMIT.—The 
Committee may not complete a review under this 
section of a covered transaction and may recommend 
to the President that the President suspend or pro-
hibit the transaction or require divestment under 
subsection (d) if the Committee determines that a 
party to the transaction has— 
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‘‘(A) failed to submit a statement required 
by paragraph (1); or 
‘‘(B) included false or misleading informa-
tion in a notice or information described in 
paragraph (1) or omitted material information 
from such notice or information. 
‘‘(3) APPLICABILITY OF LAW ON FRAUD AND 
FALSE
STATEMENTS.—The Committee shall pre-
scribe regulations expressly providing for the appli-
cation of section 1001 of title 18, United States 
Code, to all information provided to the Committee 
under this section by any party to a covered trans-
action.’’. 
SEC. 19. FUNDING. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565) is amended by adding at the end the 
following: 
‘‘(o) FUNDING.— 
‘‘(1) ESTABLISHMENT OF FUND.—There is es-
tablished in the Treasury of the United States a 
fund, to be known as the ‘Committee on Foreign In-
vestment in the United States Fund’ (in this sub-
section referred to as the ‘Fund’). 
‘‘(2) APPROPRIATION OF FUNDS FOR THE COM-
MITTEE.—There are authorized to be appropriated 
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to the Fund such sums as may be necessary to per-
form the functions of the Committee. 
‘‘(3) FILING FEES.— 
‘‘(A) IN GENERAL.—The Committee may 
assess and collect a fee in an amount deter-
mined by the Committee in regulations, to the 
extent provided in advance in appropriations 
Acts, without regard to section 9701 of title 31, 
United States Code, and subject to subpara-
graph (B), with respect to each covered trans-
action for which a written notice is submitted to 
the Committee under subsection (b)(1)(C)(i). 
‘‘(B) LIMITATION ON AMOUNT OF FEE.— 
The amount of the fee determined under sub-
paragraph (A) with respect to a covered trans-
action described in that subparagraph may not 
exceed an amount equal to the lesser of— 
‘‘(i) 1 percent of the value of the 
transaction; or 
‘‘(ii) $300,000, adjusted annually for 
inflation pursuant to regulations prescribed 
by the Committee. 
‘‘(C) DEPOSIT
AND
AVAILABILITY
OF 
FEES.—Notwithstanding section 3302 of title 
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31, United States Code, fees collected under 
subparagraph (A) shall— 
‘‘(i) be deposited as offsetting collec-
tions into the Fund for use in carrying out 
activities under this section; 
‘‘(ii) to the extent and in the amounts 
provided in advance in appropriations Acts, 
be available to the chairperson; 
‘‘(iii) remain available until expended; 
and 
‘‘(iv) be in addition to any appropria-
tions made available to the members of the 
Committee. 
‘‘(4) TRANSFER OF FUNDS.—The chairperson 
may transfer any amounts in the Fund to any other 
department or agency represented on the Committee 
for the purpose of addressing emerging needs in car-
rying out activities under this section. Amounts so 
transferred shall be in addition to any other 
amounts available to that department or agency for 
that purpose.’’. 
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SEC. 20. CENTRALIZATION OF CERTAIN COMMITTEE FUNC-
TIONS. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565), as amended by section 19, is further 
amended by adding at the end the following: 
‘‘(p) CENTRALIZATION
OF
CERTAIN
COMMITTEE 
FUNCTIONS.— 
‘‘(1) IN GENERAL.—The chairperson, in con-
sultation with the Committee, may centralize certain 
functions of the Committee within the Department 
of the Treasury for the purpose of enhancing inter-
agency coordination and collaboration in carrying 
out the functions of the Committee under this sec-
tion. 
‘‘(2) FUNCTIONS.—Functions that may be cen-
tralized under paragraph (1) include monitoring 
non-notified and non-declared transactions pursuant 
to subsection (b)(1)(H), and other functions as de-
termined by the chairperson and the Committee. 
‘‘(3) RULE
OF
CONSTRUCTION.—Nothing in 
this section shall be construed as limiting the au-
thority of any department or agency represented on 
the Committee to represent its own interests before 
the Committee.’’. 
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SEC. 21. UNIFIED BUDGET REQUEST. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565), as amended by sections 19 and 20, is 
further amended by adding at the end the following: 
‘‘(q) UNIFIED BUDGET REQUEST.— 
‘‘(1) IN GENERAL.—The President may include, 
in the budget of the Department of the Treasury for 
a fiscal year (as submitted to Congress with the 
budget of the President under section 1105(a) of 
title 31, United States Code), a unified request for 
funding of all operations under this section con-
ducted by some or all of the departments and agen-
cies represented on the Committee. 
‘‘(2) FORM OF BUDGET REQUEST.—A unified 
request under paragraph (1) should be detailed and 
include the amounts requested for each department 
or agency represented on the Committee to carry out 
the functions of that department or agency under 
this section.’’. 
SEC. 22. SPECIAL HIRING AUTHORITY. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565), as amended by sections 19, 20, and 
21, is further amended by adding at the end the following: 
‘‘(r) SPECIAL HIRING AUTHORITY.—The heads of 
the departments and agencies represented on the Com-
mittee may appoint, without regard to the provisions of 
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sections 3309 through 3318 of title 5, United States Code, 
candidates directly to positions in the competitive service 
(as defined in section 2102 of that title) in their respective 
departments and agencies to administer this section.’’. 
SEC. 23. CONFORMING AMENDMENTS. 
Section 721 of the Defense Production Act of 1950 
(50 U.S.C. 4565), as amended by this Act, is further 
amended— 
(1) in subsection (b)(2)(B)(i)(I), by striking 
‘‘that threat’’ and inserting ‘‘the risk’’; and 
(2) in subsection (d)(4)(A), by striking ‘‘the 
foreign interest exercising control’’ and inserting ‘‘a 
foreign person that would acquire an interest in a 
United States business or its assets as a result of 
the covered transaction’’. 
SEC. 24. ASSESSMENT OF NEED FOR ADDITIONAL RE-
SOURCES FOR COMMITTEE. 
The President shall— 
(1) determine whether and to what extent the 
expansion of the responsibilities of the Committee on 
Foreign Investment in the United States pursuant 
to the amendments made by this Act necessitates 
additional resources for the Committee and members 
of the Committee to perform their functions under 
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section 721 of the Defense Production Act of 1950, 
as amended by this Act; and 
(2) if the President determines that additional 
resources are necessary, include in the budget of the 
President for fiscal year 2019 submitted to Congress 
under section 1105(a) of title 31, United States 
Code, a request for such additional resources. 
SEC. 25. AUTHORIZATION FOR DEFENSE ADVANCED RE-
SEARCH PROJECTS AGENCY TO LIMIT FOR-
EIGN ACCESS TO TECHNOLOGY THROUGH 
CONTRACTS AND GRANT AGREEMENTS. 
(a) IN GENERAL.—The Director of the Defense Ad-
vanced Research Projects Agency, or a designee of the Di-
rector, may include in any contract or grant agreement 
that the Director enters into with a person, and that is 
funded by that Agency, a provision that— 
(1) limits access by any foreign person to tech-
nology that is the subject of the contract or grant 
agreement under terms defined by the Director, in-
cluding by limiting such access to specific periods of 
time; and 
(2) in a case in which the person violates the 
prohibition described in paragraph (1), requires the 
person to return all amounts that the person re-
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ceived from the Agency under the contract or grant 
agreement. 
(b) TREATMENT
OF
RETURNED
FUNDS.—Any 
amounts returned to the Defense Advanced Research 
Projects Agency under subsection (a)(2) shall be credited 
to the same appropriations account from which payment 
of such amounts was originally made under the contract 
or grant agreement described in subsection (a). 
(c) EXERCISE OF AUTHORITY.—The Director, or the 
designee of the Director, may exercise the authority pro-
vided by this section without the need for further approval 
by, or regulatory implementation within, the Department 
of Defense. 
SEC. 26. EFFECTIVE DATE. 
(a) IMMEDIATE APPLICABILITY OF CERTAIN PROVI-
SIONS.—The following shall take effect on the date of the 
enactment of this Act and apply with respect to any cov-
ered transaction the review or investigation of which is ini-
tiated under section 721 of the Defense Production Act 
of 1950 on or after such date of enactment: 
(1) Sections 4, 6, 8, 12, 13, 14, 15, 18, 20, 21, 
22, 24, and 25 and the amendments made by those 
sections. 
(2) Section 11 and the amendments made by 
that section (except for clause (iii) of section 
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