In June 2026, Senators Elizabeth Warren (D-Mass.) and Adam Schiff (D-Calif.) urged Treasury Secretary Scott Bessent to initiate a review of Paramount Skydance Corp.’s acquisition of Warner Bros. Discovery Inc. They contended that the transaction falls under the critical infrastructure provisions of the Foreign Investment Risk Review Modernization Act (FIRRMA), despite the Committee on Foreign Investment in the United States (CFIUS) not having flagged it independently.
CFIUS, an interagency committee chaired by the Secretary of the Treasury, is tasked with reviewing certain foreign investments in U.S. businesses to assess potential national security risks. Its authority was significantly expanded by FIRRMA in 2018, broadening its jurisdiction to include non-controlling investments in critical technology companies, real estate transactions near sensitive government sites, and deals involving sensitive personal data of U.S. citizens. ([home.treasury.gov](https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius-laws-and-guidance?utm_source=openai))
However, the recent acquisition highlights a potential oversight in CFIUS’s mandate: the risk posed by foreign entities involved in project subcontracts. While CFIUS scrutinizes direct foreign investments, its current framework may not fully encompass the complexities introduced by foreign subcontractors who, through their roles, could gain access to critical infrastructure or sensitive information.
This gap raises concerns about the adequacy of existing review processes in capturing all avenues through which foreign entities might influence or access U.S. critical infrastructure. As foreign investments become more intricate, involving layers of subcontracting and partnerships, there is a growing need to reassess and potentially expand CFIUS’s scope to ensure comprehensive national security protections.
Addressing this issue may require legislative action to amend FIRRMA or the development of new regulatory guidelines that explicitly include the review of foreign involvement in project subcontracts. Such measures would aim to close existing loopholes and enhance the United States’ ability to safeguard its critical infrastructure from potential foreign threats.