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EO 13456Executive OrderG.W. Bush · R Quiet signal

Executive Order 13456

Further Amendment of Executive Order 11858 Concerning Foreign Investment in the United States

This executive order amends the framework for reviewing foreign investments in the United States for national security risks. It expands the Committee on Foreign Investment in the United States (CFIUS) membership, formalizes procedures for risk mitigation agreements, and assigns specific regulatory and reporting responsibilities to the Secretary of the Treasury and Secretary of Commerce.

Federal Register Open PDF 73 FR 4677

Impact dates

  1. Director of National Intelligence to provide threat analysis as soon as possible upon chairperson request

Key directives

  • Establish CFIUS with expanded membership including USTR, OSTP Director, and other agency heads as determined appropriate
  • Assign presidential functions under Defense Production Act Section 721 to Secretary of the Treasury
  • Secretary of Treasury to issue regulations under Section 721(h) with Committee consultation
  • Secretary of Commerce to obtain, consolidate, and analyze information on foreign investment
  • Committee may enter into risk mitigation agreements or impose conditions on transactions
  • Written statement required before proposing risk mitigation measures identifying threat, vulnerabilities, and consequences
  • Revoke Section 801 of Executive Order 12919

Who is ordered

Timeline

Immediate

  • Revocation of Section 801 of Executive Order 12919
  • Expanded CFIUS membership takes effect
  • Secretary of Treasury assumes assigned presidential functions

Near term (90d)

  • Committee to develop internal coordination procedures for new membership structure
  • Lead agency designation processes to be established

Long term

  • Ongoing foreign investment reviews under expanded framework
  • Annual reports to Congress
  • Periodic implementation reviews by Committee

Risks & tensions

  • Resource adequacy tension: lead agencies may lack sufficient resources for monitoring risk mitigation measures
  • Vague 'from time to time' reporting to President lacks concrete schedule
  • Case-by-case agency additions to CFIUS create potential for inconsistent membership
  • Extraordinary circumstances standard for re-review of transactions is undefined
  • Risk mitigation measures generally cannot require recognition of existing legal authorities, creating enforcement ambiguity
Executive Order 13456: Further Amendment of Executive Order 11858 Concerning Foreign Investment in the United States · Executive Orders