White House Releases National Security Science & Technology Strategy: What It Signals for CFIUS, Outbound Investment, and Export Controls 

As mandated by Section 10612 of the CHIPS and Science Act, the White House Office of Science and Technology Policy (OSTP) issued the National Security Science and Technology Strategy (NSSTS), which implements the S&T priorities of the 2025 National Security Strategy. While framed as a technology strategy, the NSSTS previews concrete near-term action on CFIUS, outbound investment, export controls, and federal research security — direct touchpoints for clients in cross-border investment, controlled technology, and federally funded R&D. 

Key Takeaways 

• CFIUS’ scope is set to expand. The Administration will seek authority, in consultation with Congress, to monitor high-risk “greenfield” investments and to expand CFIUS’s critical-technology jurisdiction, while continuing to calibrate scrutiny to an investor’s “verifiable distance” from adversary-linked actors under the America First Investment Policy’s allied fast-track approach. 
• Outbound investment restrictions will broaden. Treasury will refine and likely expand the Outbound Investment Security Program (Comprehensive Outbound Investment National Security Act of 2025) beyond its current scope – AI, quantum, semiconductors, supercomputers, and hypersonics – to reach additional sectors implicated by China’s military-civil fusion strategy. Although the current NSSTS did not reference other countries by name, the strategy will likely be implemented in a way that circumvents particular investments in Hong Kong, Macau, Cuba, Iran, Russia, Iran, and North Korea – in line with President Trump’s “America-first investment policy,” published in February 2025. 
• Export controls: deregulation and new restrictions in parallel. BIS is streamlining select controls (e.g., a January 2026 interim rule easing drone exports to allies under EO 14307) and may reform Missile Technology Control Regime implementation, even as the strategy reaffirms the Data Security Program (EO 13873) protecting bulk sensitive personal data from adversary access. This posture may signal that BIS is considering suspending the 50% rule for another year (i.e., until November 2027). 
• Research security compliance keeps building on NSPM-33. Expect universal research-security reporting forms, automated vetting and continuous monitoring of federally funded research, and a funding prohibition for entities on the Section 1260H Chinese military company list, which is especially relevant for university and federal-contractor clients. 
• A refreshed Critical and Emerging Technologies (CET) list anchors what comes next. The strategy’s 14 CET categories (Appendix A) – including AI/autonomy, biotechnology, quantum, semiconductors, and space – are the areas most likely to see expanded CFIUS mandatory-filing triggers, export control coverage, and FY2028 federal R&D funding priority. 
• Related executive orders to track: EO 14265 (defense acquisition reform), EO 14369 (space acquisition reform), EO 14383 (America First Arms Transfer Strategy, incentivizing foreign investment in the defense industrial base), and EO 14307 (drone export streamlining). 

What Companies Should Be Preparing for Now 

For companies involved in cross-border investment, the NSSTS signals that national security review may become relevant to a broader range of transactions and investment structures. Businesses in critical and emerging technology sectors should consider CFIUS risk earlier in transaction planning, including whether a proposed investment involves critical technologies, sensitive U.S. businesses, or potentially high-risk greenfield activity.  

U.S. companies seeking foreign capital should also conduct greater diligence into prospective investors, their ownership and affiliations, and any connections to countries or entities of concern. At the same time, companies with international operations should evaluate CFIUS alongside outbound investment and export control requirements, as the strategy suggests these authorities will increasingly operate as complementary tools for protecting U.S. technology and national security interests. 

Bottom Line 

The NSSTS is a roadmap, not a rulemaking – but it signals where CFIUS, BIS, and Treasury rulemaking is headed next, particularly for AI, quantum, biotechnology, semiconductors, and space. Clients active in these critical technology sectors should begin assessing exposure now, particularly around greenfield investment structures, outbound investment involving China-linked entities, and research security disclosure obligations. We are monitoring implementation closely and are glad to discuss how these developments apply to a specific transaction or compliance program. 

Contact Diaz Trade Law today for assistance evaluating CFIUS risk and other international trade due diligence. [email protected] | 305-456-3830 

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