Also known as: Committee on Foreign Investment in the United States
The U.S. interagency committee that reviews foreign investment in American companies for national-security risk.
CFIUS is the Committee on Foreign Investment in the United States, an interagency committee chaired by the Secretary of the Treasury (a designation set by executive order rather than by the statute itself). Its review authority is codified at 50 U.S.C. § 4565 — the codification of Section 721 of the Defense Production Act of 1950 — titled "Authority to review certain mergers, acquisitions, and takeovers." Under that section CFIUS reviews "covered transaction[s]" — including "any merger, acquisition, or takeover ... by or with any foreign person that could result in foreign control of any United States business," certain real-estate transactions, and other foreign investments — for their effect on U.S. national security. It also provides that "the President may take such action ... to suspend or prohibit any covered transaction that threatens to impair the national security." Because defense-tech companies touch sensitive technology, foreign capital on your cap table can trigger a mandatory or advisable CFIUS filing, and reviews can end in clearance, a mitigation agreement, or an order to block or unwind the deal.
Source: 50 U.S.C. § 4565 (Cornell LII)
It can. If a foreign investor gains certain rights or control over a U.S. business involved in critical technology, infrastructure, or sensitive data, the deal may be a "covered transaction" subject to a mandatory or advisable CFIUS filing. Defense-tech startups are frequently in scope.
Definitions are educational and may be modified by your specific policy language, endorsements, and state rules. For regulatory guidance, refer to the California Department of Insurance or the NAIC.
Last updated: July 2026.