50 U.S.C. § 4582 (WAR AND NATIONAL DEFENSE)
§ 4582. Notification on investments
(a) Mandatory notification
Not later than 450 days after December 18, 2025, the Secretary shall issue regulations prescribed in accordance with subsection (b), to require a United States person that itself or whose controlled foreign entity knowingly engages in a covered national security transaction in a prohibited technology (unless the Secretary has exercised the authority provided by section 4581(a) of this title to prohibit knowingly engaging in such covered national security transaction) or a notifiable technology to submit to the Secretary a written notification of the transaction not later than 30 days after the completion date of the transaction.
(b) Regulations
(1) In general
Not later than 450 days after December 18, 2025, the Secretary, in consultation with the Secretary of Commerce, the Secretary of State, and, as appropriate, the heads of other relevant Federal departments and agencies, shall issue regulations to carry out this section subject to public notice and comment in accordance with subchapter II of chapter 5 and chapter 7 of title 5, and not subject to the requirements of section 4559 of this title. The regulations issued pursuant to this paragraph shall as necessary, amend, terminate, supersede, revoke, or streamline existing requirements in part 850 of title 31, Code of Federal Regulations (the Outbound Investment Rule) and shall provide a reasonable timeframe for compliance.
(2) Low-burden regulations
In issuing regulations under paragraph (1), the Secretary should balance the priority of protecting the national security interest of the United States while, to the extent practicable—
(A) minimizing the cost and complexity of compliance for affected parties, including the duplication of reporting requirements under current regulation;
(B) adopting the least burdensome alternative that achieves regulatory objectives; and
(C) prioritizing transparency and stakeholder involvement in the process of issuing the rules.
(3) Burden of proof
In accordance with section 556(d) of title 5, in an enforcement action for a violation of the prohibition set forth in subsection (a), the burden of proof shall be upon the Secretary.
(4) Completeness of notification
(A) In general
The Secretary shall, upon receipt of a notification under subsection (a), promptly inspect the notification for completeness.
(B) Incomplete notifications
If a notification submitted under subsection (a) is incomplete, the Secretary shall promptly inform the United States person that submits the notification that the notification is not complete and provide an explanation of relevant material respects in which the notification is not complete.
(5) Identification of non-notified activity
The Secretary shall establish a process to identify covered national security transactions in a prohibited technology or a notifiable technology for which—
(A) a notification is not submitted to the Secretary under subsection (a); and
(B) information is reasonably available.
(c) Inapplicability
If the Secretary prohibits a covered national security transaction in a prohibited technology under section 4581 of this title, the requirements of this section shall not apply with respect to the covered national security transaction.
(Sept. 8, 1950, ch. 932, title VIII, § 802, as added Pub. L. 119–60, div. H, title LXXXV, § 8521, Dec. 18, 2025, 139 Stat. 1925.)