Revised National Critical Capabilities Defense Act of 2022 Proposes Expansive Outbound Investment Review Regime
Covington & Burling – On June 13, a bipartisan group of U.S. lawmakers released draft legislation that would establish a new regime to regulate certain outbound investment and other business activities to address perceived national security risks. The legislation, titled the National Critical Capabilities Defense Act of 2022 (“Revised NCCDA”), is intended to replace an earlier bill (H.R. 6329) that was included in the much broader America Creating Opportunities for Manufacturing, Pre- Eminence in Technology, and Economic Strength Act introduced in the House of Representatives in January 2022. While the new proposal is intended to be narrower in scope, and to be responsive to concerns expressed by the business community regarding the prior version of the bill, the Revised NCCDA is in some respects broader than its earlier iteration, implicating a wider range of business activities and transaction parties.