The public comment period for the long-awaited Defense Federal Acquisition Regulation Supplement (“DFARS”) proposed rule, “Mitigating Risks Related to Foreign Ownership, Control, or Influence” (the “proposed DFARS FOCI rule”), closed on July 6, 2026. But recent activity in Congress suggests that the Department of War (“DoW”)’s proposed rule may be only one part of a broader effort to expand the government’s visibility into and mitigation of foreign ownership, control, or influence (“FOCI”) risks across the defense industrial base. Taken together, the proposed DFARS FOCI rule and pending provisions in the House and Senate versions of the Fiscal Year (“FY”) 2027 National Defense Authorization Act (“NDAA”) could substantially extend FOCI-related scrutiny beyond the traditional universe of cleared contractors performing classified work.
Continue Reading Congress Considers Further FOCI Reforms as DoW Moves to Expand Disclosure Requirements for Unclassified Defense ContractorsDarby Yeager
Darby Yeager is an associate in the Government Contracts and CFIUS Practice Groups. She advises clients on a range of regulatory issues involving cross-border transactions and government contract compliance issues. Her practice includes advising clients on the U.S. national security review process administered by the Committee on Foreign Investment in the United States (CFIUS) as well as on emerging national security regulatory regimes, such as the Treasury Department’s Outbound Investment Program.