HR7675-119

What This Bill Does

The Securing Partner Supply Chains Act creates a three-year Initiative on Foreign Investment Screening at the Department of State. Congress finds that foreign investment can support growth but can also create national security risks when critical infrastructure, sensitive technology, or supply chains are compromised. The Secretary of State must establish the initiative within 180 days and coordinate with other U.S. agencies. The Under Secretary for Economic Growth, Energy, and the Environment or designee leads it.

The initiative must provide technical assistance, training, and advisory services to foreign countries on best practices for screening foreign investments for national security risks. It must coordinate among U.S. agencies, the private sector, partner countries, and civil society; support regulatory guidance and information sharing; assess partner-country progress; and conduct outreach on investment-security risks. The Secretary must report annually for three years on technical assistance, progress by foreign countries, emerging national security risks, recommendations for further U.S. engagement, and reasons for partner-country determinations.

Who Benefits and How

Partner countries benefit from technical assistance, training, advisory services, regulatory guidance, and information sharing on investment screening. Department of State economic security staff benefit from a defined three-year initiative and lead office. U.S. national security agencies benefit if partner countries screen foreign investments affecting critical infrastructure, sensitive technology, and supply chains. Allied supply-chain resilience efforts benefit from coordinated investment-security standards. Private sector investment security advisers benefit from a State Department process that includes private-sector coordination. Congressional foreign affairs committees benefit from annual reports on assistance, partner-country progress, risks, and recommendations.

Who Bears the Burden and How

The Secretary of State must establish and coordinate the initiative within 180 days. The Under Secretary for Economic Growth staff must lead implementation. Partner-country governments must build or improve screening mechanisms to benefit from the assistance. Foreign investors in sensitive sectors may face more national security screening abroad. Department of State reporting staff must prepare annual reports for three years. Civil society participants may need to engage in standards and outreach work. U.S. agencies involved in investment security must coordinate technical assistance and information sharing.

Key Provisions

• Establishes a three-year Initiative on Foreign Investment Screening within 180 days.
• Requires State Department leadership by the Under Secretary for Economic Growth, Energy, and the Environment or designee.
• Provides technical assistance, training, and advisory services to foreign countries.
• Supports development of foreign investment screening mechanisms through regulatory guidance and information sharing.
• Requires outreach and capacity building on investment security risks.
• Requires annual reports for three years on assistance, progress, emerging risks, recommendations, and partner-country determinations.