FAS

CRS on Exon-Florio, Defense Transformation

03.01.06 | 1 min read | Text by Steven Aftergood

The Exon-Florio Act of 1988, which permits the President to block foreign takeover of certain types of U.S. companies on national security grounds, has been in the news lately in connection with the proposed acquisition of six U.S. ports by Dubai Ports World.

Some useful background on that statute is provided by the Congressional Research Service in “The Exon-Florio National Security Test for Foreign Investment,” updated February 23, 2006.

The substance of the Pentagon’s notion of “defense transformation” and the spin surrounding it are considered in another newly-updated CRS report.

“Some observers are concerned that the Administration’s regular use of the term transformation has turned the concept of transformation into an empty slogan or buzz-phrase.”

“Other observers are concerned that the Administration has invoked the term transformation as an all-purpose rhetorical tool for justifying its various proposals for DOD, whether they relate to transformation or not, and for encouraging minimal debate on those proposals by tying the concept of transformation to the urgent need to fight the war on terrorism.”

See “Defense Transformation: Background and Oversight Issues for Congress,” updated February 17, 2006.

publications
See all publications
Government Capacity
Policy Memo
Report
Four Innovations Driving Climate Progress in State Government

Cities and states are best positioned to design policies to accelerate clean energy, innovation, and economic development because they can design approaches that work in different social, political, and economic contexts. 

04.22.26 | 18 min read
read more
Government Capacity
day one project
Policy Memo
Outcome-Based Contracting Reorients Government IT Acquisition Around Public Value and Mission Results

Outcome-Based Contracting reframes procurement around the staged achievement of measurable mission outcomes rather than the delivery of predefined technical artifacts.

04.21.26 | 16 min read
read more
Emerging Technology
day one project
Policy Memo
Building Human Infrastructure to Mitigate AI Fairness Harms in K-12 Education

The real opportunity of AI lies not just in the tools, but in an educator workforce prepared to wield them. When done right, this investment in human infrastructure ensures AI accelerates learning outcomes for all students, closing the “digital design divide.”

04.20.26 | 5 min read
read more
Clean Energy
Blog
Beyond Cap and Trade: What’s Next for Carbon Markets?

If carbon markets are going to play a meaningful role — whether as engines of transition finance, as instruments of accurate pricing across heterogeneous climate interventions, or both — they need the infrastructure and standards that any serious market requires.

04.16.26 | 9 min read
read more