Treasury Proposes Outbound Investment Screening Rules Under COINS Act

The U.S. Department of the Treasury has issued a Notice of Proposed Rulemaking to implement outbound investment screening provisions associated with the Comprehensive Outbound Investment National Security Act of 2025 (COINS Act). Congress incorporated the bipartisan law into the annual FY2026 National Defense Authorization Act (NDAA). The proposed rule is a step toward putting the statute into practice, with a focus on outbound investment and the development of sensitive, advanced technologies. The supplied notices do not describe the rule’s detailed screening criteria, identify covered transactions, or provide an implementation schedule, so affected organizations will need to review the actual proposed text as it becomes available and avoid assuming obligations that have not yet been finalized.

The Senate sponsors describe the law’s purpose as encouraging the development of the most sensitive and cutting-edge technologies in the United States rather than financing their development in countries that do not share U.S. values. Senators Catherine Cortez Masto, Elizabeth Warren, and John Cornyn said Treasury’s proposal is “one step forward to ensure the United States remains the world’s leader in advanced technology.” They also emphasized congressional oversight, stating that “Congress will be watching to ensure our bipartisan bill is implemented effectively.” Their statements frame the rulemaking as both an economic and national-security measure, with implications for businesses whose investment decisions intersect with strategically sensitive technology.

For government contractors, the proposal is relevant even though it is not a solicitation, contract award, or direct procurement action. Companies supporting defense, technology, and national-security missions may have cross-border investments, joint ventures, financing arrangements, technology-development partnerships, or other business relationships that warrant review as the rulemaking proceeds. Procurement and compliance teams can begin by identifying potentially relevant activities and coordinating with legal, finance, security, and business-development functions. The source material does not specify which transactions or technologies would be covered, so these steps are prudent monitoring and assessment rather than confirmation that a particular contractor is subject to a new requirement.

The rule remains proposed, not final. The available source information supplies no public comment deadline, effective date, procurement contact, or immediate contracting opportunity. Contractors should therefore monitor Treasury’s rulemaking materials for the proposed text, any request for public comments, and later changes before making compliance decisions. The bipartisan statements from the senators signal congressional interest in implementation, but they do not independently establish specific reporting, screening, or transaction-prohibition requirements. For companies operating in advanced-technology markets, the practical near-term issue is readiness: determine whether outbound investment or international partnerships could become relevant under the final framework, preserve visibility into those activities, and assess potential effects without treating the proposal as an already-effective rule.

• Treasury issued a Notice of Proposed Rulemaking on outbound investment screening; the rule is not final.
• The proposal implements provisions associated with the COINS Act, enacted through the FY2026 NDAA.
• The stated policy objective is to support U.S.-based development of sensitive, cutting-edge technologies rather than funding development in countries that do not share U.S. values.
• Senators Catherine Cortez Masto, Elizabeth Warren, and John Cornyn said Congress will monitor implementation.
• Businesses with cross-border investment or advanced-technology activities should assess potential exposure and follow the rulemaking process.
• Defense and technology contractors can review investment-related partnerships and coordinate early across legal, compliance, finance, security, and business-development teams.
• The supplied information identifies no specific covered transactions, screening thresholds, or detailed compliance requirements; consult the proposed rule text for those details.
• No comment deadline, effective date, procurement contact, or contract opportunity is identified in the source material.