Democratic lawmakers in Washington introduced legislation on 12 June that would establish a new federal body to review, track and publicly disclose large foreign investment commitments made to the United States, arguing that stronger oversight is needed to protect American workers and prevent ethical conflicts involving public officials.

What the Bill Proposes

The proposal, led by Senator Tammy Baldwin and Congressman Ro Khanna, would create the Foreign Investment Review Authority (FIRA) — a dedicated agency tasked with assessing whether incoming foreign direct investment delivers a 'net economic benefit' through job creation, domestic production and supply-chain integration. FIRA would also maintain a publicly accessible database of covered investments and enforce reporting requirements.

The legislation would additionally establish a Chief Ethics Officer, a Public Oversight Board and mechanisms for public complaints. Critically, it would mandate disclosures when senior government officials or their family members stand to benefit financially from covered investments.

What Lawmakers Said

'While foreign investments can create jobs and support our local economies, they also can open the door to adversaries undercutting American workers and the President lining his pockets,' Baldwin said. She added that basic oversight was necessary to ensure 'American workers and American communities' — not adversaries or well-connected insiders — see the returns.

Khanna framed the bill explicitly around the China threat: 'Establishing the Foreign Investment Review Authority (FIRA) would empower the US government with the tools it needs to ensure investment commitments negotiated by the President benefit working Americans and never our economic adversaries, such as the People's Republic of China (PRC).' He also warned against 'corrupt deals that lack Congressional oversight.'

Key Investment Figures Cited

The bill references specific announced investment commitments that have been trumpeted by the White House: $550 billion from Japan, $350 billion from South Korea and $500 billion from Taiwan. It also flags anticipated investments linked to a recently announced US-China Board of Investment and Board of Trade, signalling that scrutiny would extend to Beijing-linked capital flows as well.

Labour Unions Back the Measure

The proposal has drawn support from Representatives Thomas Suozzi, Debbie Dingell and Shontel Brown, as well as the United Auto Workers (UAW) union. Rajiv Sicora, legislative director of the UAW, argued that existing trade and investment rules 'have empowered corporations to destroy jobs, erode union density, and undercut the working class,' and called for all foreign direct investment to uphold 'the highest standards' — especially when tied to trade concessions.

Broader Context

The bill arrives as the White House actively courts hundreds of billions in foreign investment pledges from allied nations, while simultaneously pursuing broader economic engagement with China. Critics argue that without a formal review mechanism, such commitments carry both strategic and ethical risks. This is not the first time Congress has sought to tighten FDI oversight — the Committee on Foreign Investment in the United States (CFIUS) already reviews deals for national security concerns, but lawmakers contend that CFIUS does not cover the scale of investment commitments now being announced, nor does it address domestic ethics obligations. The FIRA bill represents a push to fill that gap with a transparency-first, worker-centred framework.