A program to address the risks of outbound United States investment in areas with sensitive technology potentially harmful to national security would cost $10 million if set up this fiscal year, according to Reuters's U.S. Treasury Department report.
The report surfaced as President Joe Biden's administration weighs restrictions on outbound investments and the president prepares to release his proposed budget for the next fiscal year that starts in October.
U.S. lawmakers have been pushing the administration to boost oversight of investments by U.S. companies and individuals in other countries, particularly China, citing concerns over national security and supply chain issues. As a result, they have urged the president to issue an executive order.
Congress sought the analysis from the Treasury Department, which would lead to any such program's implementation, and a review by the U.S. Commerce Department, which would coordinate with Treasury.
In its analysis, Treasury said it would need about $10 million to set up the program for the fiscal year 2023 and anticipated that Biden would ask for additional resources in his proposal, scheduled to be released on Thursday.
While the president can request resources, it is up to Congress to pass any funding into law.
"I am excited we should expect to see support for outbound investment review reflected in the president's ... budget," Rosa DeLauro, the ranking Democrat on the U.S. House of Representatives Appropriations Committee, said. She added she would seek to support any executive action on outbound investment through legislation.
The Treasury report did not cite China specifically.
"As currently contemplated, the program would ... focus on investments that could advance 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," it said.
Speaking at a Bloomberg News event Thursday, Commerce Secretary Gina Raimondo said any ultimate restrictions on U.S. investors should not "be overly broad" and added that the department was considering a "pilot program" on outbound investment controls.
As Reuters asked how long it would take to put restrictions in place after the event, Raimondo said: "Months, not years for sure. We're on it every day working it. We're talking to industry, stakeholders, and Treasury, who must administer this."
The Commerce Department, in a separate report to Congress seen by Reuters on Saturday, said it would need adequate resources to take action but did not cite a specific amount, adding that it expected Biden's budget to seek additional funding.
