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Federal statuteCFIUS / FIRRMA

Defense Production Act of 1950, Section 721 (as amended by the Foreign Investment Risk Review Modernization Act of 2018)

Section 721 authorizes CFIUS review of covered foreign investment and certain real-estate transactions.

Last reviewedJune 28, 2026Version v1

Section 721 authorizes CFIUS review of covered foreign investment and certain real-estate transactions.

In plain terms. Section 721 authorizes CFIUS review of covered foreign investment and certain real-estate transactions. It matters to contractors whose technology, data, facilities, or classified/CUI work may trigger national-security review.

Who it applies to. It applies to U.S. businesses, investors, and contractors involved in covered control, non-controlling, or real-estate transactions.

What it requires. In practice, contractors should assess whether a transaction is covered, file notices or declarations when required, protect sensitive data and technology during diligence, and plan for mitigation if CFIUS identifies national-security risk.

Why it matters. For GovConCyber, the key is to translate the law into contract-performance terms without overstating the source. The page should tell readers whether the requirement affects eligibility, representations, contract performance, flowdowns, data handling, incident response, or enforcement exposure.

Citation. 50 U.S.C. § 4565; 31 C.F.R. parts 800 and 802.