Foreign Investment and National Security Act of 2006

Foreign Investment and National Security Act of 2006 - Amends the Defense Production Act of 1950 to revise provisions concerning presidential authority to review any mergers, acquisitions, or takeovers (transactions) that could result in foreign control of persons engaged in interstate commerce in the United States. Codifies the Committee on Foreign Investment in the United States (CFIUS) as a multi-agency committee, with the Secretary of the Treasury as the chairperson and the Secretary of Defense as the vice chairperson. Directs the Committee on Foreign Investment in the United States (CFIUS) to review any proposed or pending transaction to determine its effect on national security. Requires such reviews to be completed within 30 days, with one additional 30-day extension. Directs CFIUS, as part of such review, to investigate whether the transaction would result in foreign control of any critical U.S. infrastructure with possible impairment to national security. Requires CFIUS monitoring of withdrawn transactions.

Requires CFIUS to provide assessments of foreign countries, including their adherence to nonproliferation agreements, treaties, etc., for use with CFIUS reviews and investigations. Authorizes the President, after a CFIUS review or investigation, to take appropriate action, including suspending or prohibiting a transaction which would result in the control of any critical infrastructure or person engaged in interstate commerce in the United States by or with a foreign person or government, so that such control will not threaten to impair the national security. Permits the President to take such actions only upon finding credible evidence that the national security is threatened and other provisions of law do not protect the national interest. Outlines factors to be considered by the President before taking action, including: (1) potential effects on U.S. critical infrastructure or critical technologies; (2) domestic production needed for national defense; and (3) control of domestic industries and commercial activity by foreign persons.

Provides for the confidentiality of information.

Requires notification, by CFIUS, to certain members of Congress of a proposed or pending transaction that has come under review or investigation.

Requires an annual report from the Secretary of the Treasury to the congressional finance committees with respect to the preservation of the nation's defense production and critical infrastructure.

Written by the nonpartisan Congressional Research Service. All summary versions on Congress.gov