President Donald J. Trump signed an executive order on February 10 pausing enforcement of the Foreign Corrupt Practices Act (FCPA) for at least 180 days while directing a review of the law’s impact on American economic competitiveness and national security.
The FCPA, enacted in 1977, prohibits U.S. companies from engaging in bribery or corrupt dealings in foreign business transactions. The executive order argues that FCPA enforcement has expanded beyond its original intent, restricting American businesses in ways that disadvantage them against foreign competitors and interfere with the President’s constitutional authority over foreign affairs.
The order states that “overexpansive and unpredictable” enforcement of the FCPA has led to unnecessary legal actions against U.S. companies, draining federal law enforcement resources and limiting American access to key strategic markets. The administration contends that economic strength is vital to national security, particularly in industries such as critical minerals, infrastructure, and deep-water ports.
As part of the directive, the Attorney General will halt all new FCPA investigations unless specifically approved and will conduct a detailed review of existing enforcement actions. After this review, new FCPA guidelines will be issued to align enforcement with the President’s foreign policy authority and economic priorities. Future FCPA investigations will be governed by these new guidelines and must receive direct approval from the Attorney General.
The initial pause on FCPA enforcement will last 180 days, though the Attorney General may extend the review period if necessary. Additionally, the Department of Justice (DOJ) will assess whether previous FCPA actions exceeded proper legal boundaries and recommend any necessary corrections.
Administration’s Justification for the Pause
According to a White House fact sheet, the executive order is part of a broader strategy to eliminate “undue barriers to U.S. success” and ensure American businesses can compete fairly on the global stage. The administration argues that excessive FCPA enforcement prevents U.S. firms from engaging in business practices common among international competitors, putting them at a disadvantage.
The fact sheet cites recent FCPA enforcement trends, noting that in 2024 alone, the DOJ and SEC filed 26 FCPA-related cases, with 31 companies under investigation. Over the past decade, there have been an average of 36 FCPA-related cases per year, which the administration claims places a growing economic burden on American businesses.
Read the full executive order here.