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House Funding Bill Could 'Hamper' Outbound Investment Program, White House Says

The Biden administration opposes the House version of the FY 2025 Financial Services and General Government Appropriations Bill, partly because it could hurt the Treasury Department's ability to implement upcoming outbound investment restrictions (see 2405080039), the White House said July 22.

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The administration said the bill features a $68 million "reduction in funding ... from the FY 2025 Budget request level," which would "cause severe disruption to core offices and operations" and would "significantly hamper Treasury's ability to implement the Outbound Investment Security Program." The program "prohibits or requires notification of investments made by U.S. persons in certain technologies or products critical to national security," the White House said.

The bill also would cut funding for the Financial Crimes Enforcement Network and “undermine FinCEN’s implementation of the Corporate Transparency Act” (CTA), the White House said.

The bill would provide $170.2 million for FinCEN, $45.5 million below the administration’s request and $20 million below the FY 2024 enacted level (see 2406040028). It also would withhold funds FinCEN may need to implement or enforce its new beneficial ownership information (BOI) reporting rule, which is required by the CTA.

The White House said President Joe Biden will veto the bill if it reaches his desk in its current form.

The House Appropriations Committee approved the bill last month. The Senate Appropriations Committee has not yet unveiled its version.