US Treasury puts cost of outbound investment risk program at $10 million

WASHINGTON (Reuters) – A program to address the risks of outbound U.S. investment in areas with sensitive technology potentially harmful to national security would cost $10 million if set up this fiscal year, according to a U.S. Treasury Department report obtained by Reuters.

As President Joe Biden weighs out restrictions on foreign investments, the report came to light as the president is preparing for his next budget that will be released in October.

U.S. lawmakers are pushing for the administration’s increased oversight of U.S. investment in countries other than the United States, especially China. This is based on concerns regarding national security, supply chain and supply chains issues and they have asked the president to sign an executive order.

Congress requested the Treasury Department’s analysis, which would oversee any program, and a review from the U.S. Commerce Department. This would be coordinated with Treasury.

Treasury’s analysis indicated that $10 million was needed to establish the program in fiscal 2023. Treasury also stated it believed Biden would request additional resources for his proposal. This report is due to be published on Thursday.

Although the President can ask for resources, Congress must pass funding legislation.

“I am excited we should expect to see support for outbound investment review reflected in the president’s … budget,” Rosa DeLauro was the top Democrat in the U.S House of Representatives Appropriations Committee. She made this statement. In a statement, she said that Rosa DeLauro would support executive actions on outbound investments through legislation.

China wasn’t mentioned by the Treasury report.

“As currently contemplated, the program would … focus on investments that could result in the advancement of military and dual-use technologies by countries of concern. The investments that would be subject to the program are of a nature that they are not presently captured by export controls, sanctions, or other related authorities,” You said it.

Speaking at a Bloomberg News Event on Thursday night, Gina Raimondo, Commerce Secretary, stated that U.S. investors shouldn’t be subject to any last-resort restrictions. “be overly broad,” And he added, “The department is considering a…” “pilot program” On outbound investment control

Raimondo answered Reuters’ question about the time it took to place restrictions after the event. “months not years for sure. We’re on it every day working it. We’re talking to industry, talking to stakeholders, talking to Treasury whose going to have to administer this.”

In a separate report, the Commerce Department told Congress that they would require sufficient resources for action, but didn’t cite a precise amount. It also stated it expects Biden to request additional funding.

(Reporting by David Shepardson. Writing by Susan Heavey. Editing by Paul Simao.