Treasury Announces First Steps Toward Fast-Track CFIUS Process

May 12, 2025 – On May 8, the U.S. Department of the Treasury announced plans to create a Known Investor portal within the fast-track review process under development by the Committee for Foreign Investment in the United States (CFIUS). The fast-track CFIUS process, first announced in the America First Investment Policy on February 21, aims to facilitate greater investment in U.S. businesses from sources that are confirmed to pose the least risk to national security. The Known Investor portal will collect information in advance from foreign investors located in ally and partner nations to streamline review of subsequent investments. This advisory summarizes what is currently known about this initiative and provides recommendations for foreign investors that wish to participate in the future pilot program.

Key Takeaways

• The CFIUS fast-track process, introduced in the America First Investment Policy, will debut as a pilot program and include a Known Investor portal through which CFIUS will collect and evaluate information needed to streamline reviews for eligible foreign investors.
• Foreign investors interested in maximizing the benefits of the fast-track CFIUS process should prepare now to demonstrate eligibility.

Background

The America First Investment Policy directed Treasury to create an expedited fast-track process to encourage investment from allied and partner sources, particularly those involved in advanced technology and other critical sectors. The policy emphasizes the process must employ objective standards and appropriate security measures, including requirements that investors demonstrate independence from U.S. foreign adversaries, which are identified as China (including the special administrative regions of Hong Kong and Macao), Cuba, Iran, North Korea, Russia and the Maduro regime of Venezuela.

In remarks delivered on April 24, Deputy Secretary of the Treasury Michael Faulkender outlined Treasury’s intended approach to reducing regulatory burdens and enhancing efficiency in CFIUS reviews. Faulkender indicated that Treasury was contemplating ways to build a knowledge base to streamline information collection for repeat filers. He also stated that a key component of CFIUS’s national security risk analyses will be prospective investors’ verifiable distance and independence from foreign adversaries.

The May 8 announcement confirmed that Treasury is continuing to make progress toward implementing the fast-track process – initially as a pilot program – and introduced the Known Investor portal as a key component. This portal will enable CFIUS to collect investor information in advance of filings, but details regarding the advance information to be collected remain to be determined.

Implications for Foreign Investors

The fast-track process and Known Investor portal present opportunities for prospective investors from allied and partner nations to benefit from streamlined CFIUS reviews. However, eligibility will hinge on verified independence from foreign adversaries, a core criterion in CFIUS’s risk-based assessments. Investors should anticipate scrutiny of their ownership structures, partnerships, operational ties, physical and digital security measures, and export control compliance programs.

Recommendations for Preparing to Participate in the Pilot Program

To position themselves for participation in the fast-track process, investors should consider the following steps:

• Conduct a preemptive internal review: Assess ownership structures, affiliations and business relationships to confirm independence from foreign adversaries or threat actors. Identify and address any potential red flags, such as partnerships or investments linked to entities of concern.
• Compile comprehensive investor information: Prepare and compile documentation on corporate structure, beneficial ownership and operational history.
• Adopt best practices for risk mitigation: Implement governance and compliance measures to minimize national security risks, such as physical security and data protection protocols and export control compliance programs.
• Engage experienced counsel early: Work with legal advisers familiar with CFIUS processes to navigate the pilot program’s requirements and ensure alignment with eligibility criteria. Counsel can also help prepare submissions, address CFIUS inquiries and, if appropriate, arrange an informal consultation with CFIUS to discuss potential issues.
• Monitor program developments: Stay informed about the pilot program’s rollout, including eligibility criteria, application processes and timelines, as Treasury is expected to provide further details in the coming months.

Conclusion

Once implemented, the fast-track CFIUS clearance process has the potential to offer significant benefits for allied and partner investors who meet the eligibility requirements. Investors able to leverage the streamlined process may significantly reduce transaction timelines, risks and costs, particularly in sensitive sectors.

Hughes Hubbard stands ready to assist clients in navigating these developments and optimizing their engagement with the CFIUS process.