Updated January 14, 2021
SelectUSA Program: U.S. Inbound Investment Promotion
U.S. efforts to attract foreign direct investment (FDI)
The United States’ large consumer market, strong legal
primarily take place at U.S. state and local levels, such as
protections, such as for intellectual property rights, high
through economic development organizations (EDOs),
labor productivity, and position as an innovation and
which work to attract business investment locally and
technology hub have made the United States an attractive
regionally. At the same time, federal efforts to coordinate
destination for investors. At the same time, developing
investment promotion also exist.
economies have been increasingly competitive destinations
Currently, federal efforts are focused through SelectUSA, a
for FDI (see Figure 2), leading to increased global
Department of Commerce program established in 2011
competition to attract FDI.
(Executive Order 13577), which aims to coordinate federal
Figure 2. Destination of Global Inbound FDI by
efforts to attract and retain “job-creating” business
Country Grouping, 2000 and 2019
investment in the United States. SelectUSA focuses both on
drawing foreign investors to the United States and working
to “re-shore” U.S. firms. For the 117th Congress, SelectUSA
may present issues as to its possible codification, funding,
economic impact, and implications for other investment
policy issues.
Inbound Investment Background
A key aspect of U.S. investment policy is attracting foreign
direct investment (FDI). The United States is a major

Source: CRS. Data from U.N. Conference on Trade and
destination for FDI. Foreign firms invest in the United
Development, World Investment Report 2020.
States by establishing new operations (“greenfield
Note: Data on a historical stock basis.
investments”), purchasing existing operations of another
company (e.g., mergers and acquisitions), or adding capital
Select USA Overview
to existing U.S. operations. Expenditures on acquisitions of
SelectUSA Structure. The International Trade
companies represented the majority of FDI expenditure in
Administration (ITA) of the Department of Commerce
2019, as compared to expenditures to establish new U.S.
houses SelectUSA in its Global Markets unit (formerly
businesses or expenditures to expand existing foreign-
called the U.S. and Foreign Commercial Service). The
owned businesses (see Figure 1).
Global Markets unit provides both export assistance
Figure 1. New FDI in the United States: Expenditures
services for U.S. firms and inward investment promotion.
An Executive Director leads SelectUSA. Investment
specialists manage portfolios of international markets and
U.S. regions. SelectUSA uses resources of Global Markets
commercial service officers internationally. U.S. foreign
missions of Department of State also support the program.

The SelectUSA Executive Director chairs the Federal
Source: CRS. Data from U.S. Bureau of Economic Analysis (BEA),
Interagency Investment Working Group, which aims to
preliminary for 2019.
enhance coordination in federal assistance for business
investment decisions across more than 20 agencies.
Majority-owned affiliates of foreign firms in the United
States play a significant role in the U.S. economy and U.S.
Program Activities. SelectUSA services include:
international trade. According to data from the U.S. Bureau
ï‚· providing information and data on FDI to businesses
of Economic Analysis, in 2018, these affiliates:
and EDOs;
ï‚· contributed $1.1 trillion in value-added to the U.S. gross
ï‚· connecting companies with EDOs and federal resources;
domestic product (GDP);
 acting as an “ombudsman” to help companies navigate
ï‚· employed 7.8 million workers, including about 2.8
the U.S. regulatory environment;
million in the manufacturing industry;
ï‚· providing an international platform for EDOs to market
ï‚· conducted $66.9 billion in research and development;
their locations as investment destinations through the
and
annual SelectUSA Investment Summit, “road shows”
ï‚· exported $395.3 billion and imported $750.6 billion in
abroad, and customized fee-based services; and
goods.
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SelectUSA Program: U.S. Inbound Investment Promotion
ï‚· coordinating high-level engagement at the national level
Key Issues for Congress
with EDOs to advocate that a firm invest in the United
Authorization and Resources. Possible issues before
States over a foreign location for a particular project.
Congress include whether to codify SelectUSA and whether
SelectUSA states that it operates with “strict geographical
to adjust funding for SelectUSA. Relatedly, Congress may
neutrality,” whereby it does not advocate for investment in
consider whether SelectUSA sufficiently leverages sub-
one U.S. location over another, though it is able to assist
federal efforts to attract investment.
specific locations with individual promotional activities on
One view is that a permanent or long-term authorization
a first-come, first-served basis. It also states that it does not
and consistent resources could stabilize SelectUSA’s role in
engage in activities that encourage inbound investment by
attracting investment and, in turn, boost U.S. exports and
state-owned enterprises (SOEs) of non-market economies.
jobs, as well as send a message internationally of U.S.
In June 2019, SelectUSA hosted its 8th annual investment
interest in competing for investment. Another view is that
summit. The 2019 summit brought together more than
SelectUSA duplicates existing state- and local-level
3,100 attendees from 79 international markets and across
investment promotion programs and that policies to
the United States. Among other things, four new investment
improve the U.S. investment environment, such as in terms
projects of more than $85 million were announced onsite,
of education, the labor force, and the tax system, would be
and SelectUSA launched a technology program to connect
more effective in attracting and retaining FDI.
early-stage and startup companies with investment
Programs and Performance Metrics. Congress may
prospects in the United States. Uncertainty due to the
examine SelectUSA programs’ ability to attract FDI
Coronavirus Disease 2019 (COVID-19) pandemic resulted
effectively in light of increased competition for FDI from
in the postponement of the 9th annual summit to June 2021.
emerging markets, as well as the challenges to FDI
According to SelectUSA, since its inception, it has
presented by the economic and policy uncertainty
facilitated more than $78 billion in investment, creating
surrounding the COVID-19 pandemic. It may examine if
and/or retaining over 95,000 U.S. jobs. It reported
innovations to SelectUSA programs may be needed.
facilitating more than $18.5 billion in investment in
Congress also could examine how SelectUSA measures the
FY2019. The data available on SelectUSA’s website appear
effectiveness of its activities, and whether more regular
to focus more on analyzing U.S. FDI levels, rather than on
reporting may be warranted.
metrics regarding SelectUSA’s performance, but the U.S.
Economic Debate. Inbound investment is tied to
government periodically has provided information about
supporting U.S. jobs and exports, but it raises concerns
outcomes associated with the program.
about job losses, for instance, from mergers and
Funding. Appropriations for SelectUSA have grown from
acquisitions. To the extent that foreign investors compete
less than $0.9 million at the program’s inception in
with domestic firms for capital funds, Congress may
FY2012, up to $10.0 million for each of FY2015 through
examine the net U.S. economic impact of inbound FDI.
FY2020 (see Figure 3). SelectUSA comprised a fraction of
(Outbound FDI also presents debate, but is beyond the
the overall Global Markets unit budget ($333.0 million in
scope of this product.)
FY2020). Congress did not provide a specific funding level
Congress also may consider SelectUSA’s role in facilitating
for SelectUSA for FY2021.
investment, and in turn, U.S. jobs and exports. On one
Figure 3. SelectUSA Funding, FY2012-2020
hand, macroeconomic factors, such as economic growth
and exchange rates, may exert primary influence on
investors’ decisions to locate in the United States and may
outweigh any effect of the program. On the other hand,
SelectUSA may play an additional role in attracting
investments that may have not happened otherwise.
Measuring the impact of a government program can be
complicated and sensitive to the assumptions made.
Investment Policy Goals. U.S. investment policy includes

consideration of the national security impact of certain FDI
Source: CRS. Data from joint explanatory statements, accompanying
transactions in the United States (e.g., potential foreign
the annual appropriations acts.
acquisitions of firms in critical sectors) through the
For FY2021, the Trump Administration budget continued to
Committee on Foreign Investment in the United States
request to rescale the Global Markets unit’s export
(CFIUS). Congress may examine how to balance federal
promotion and trade analysis efforts by reducing personnel
efforts to attract FDI and to protect national security.
worldwide and closing overseas and domestic offices to
Congress also may consider SelectUSA’s expanded focus
reduce fixed operational expenses. It is not clear to what
on “reshoring” U.S. companies’ foreign activities,
extent SelectUSA may have been a focus of these efforts.
alongside its original mandate to attract and retaining FDI
Congress has continued to provide full funding for Global
in the United States.
Markets, including increasing its funding by 2.3% for
FY2021 ($340.8 million).
For more information, see CRS In Focus IF10636, Foreign
Direct Investment: Overview and Issues, by James K.
Jackson and Shayerah I. Akhtar.
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SelectUSA Program: U.S. Inbound Investment Promotion

IF10674
Shayerah I. Akhtar, Specialist in International Trade and
Finance


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https://crsreports.congress.gov | IF10674 · VERSION 4 · UPDATED

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