New FOCI rule will extend to unclassified defense contracts, could affect CFIUS review

By Curtis Eichelberger ( October 27, 2026, 13:18 GMT | Insight) -- The US Department of Defense published a proposed new rule in May that, when implemented sometime next spring, will expand the required “foreign ownership, control, or influence” (FOCI) disclosures and potential mitigation beyond contractors holding security clearances, to those performing “unclassified” DOD contracts valued in excess of $5 million. It is possible that when FOCI concerns are identified and addressed, there will be less need for mitigation from the Committee on Foreign Investment in the US, in some cases.The US Department of Defense published a proposed new rule in May that, when implemented sometime next spring, will expand the required “foreign ownership, control, or influence” (FOCI) disclosures and potential mitigation beyond contractors holding security clearances, to those performing “unclassified” DOD contracts valued in excess of $5 million....

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