Testimony before the House Committee on Financial Services on US policy on investment security
On July 16, 2026, Sarah Bauerle Danzman, associate professor of International Studies at the Hamilton Lugar School and a nonresident senior fellow at the Atlantic Council, testified before the U.S. House Committee on Financial Services, offering expert insights on the future of U.S. investment security policy.
In her prepared testimony, published by the Atlantic Council, Bauerle Danzman emphasized the importance of maintaining principled, transparent frameworks for screening both inbound and outbound investments.
“Security is not a bargaining chip. It’s a foundational principle,” Bauerle Danzman told lawmakers, cautioning against the use of national security tools to pursue unrelated economic or diplomatic objectives.
She also addressed the emerging policy space of outbound investment screening, advocating for narrowly tailored mechanisms that are democratically accountable and internationally coordinated. She stressed the importance of defining clear thresholds for what constitutes a national security threat.
Reflecting on the role of scholarship in policymaking, Bauerle Danzman added, “Academic research can support better policy design by helping us understand the trade-offs and consequences of different approaches. It brings evidence to bear on decisions that are often made under conditions of uncertainty.”
Bauerle Danzman’s testimony underscores the Hamilton Lugar School’s mission to connect academic expertise with real-world policy challenges. Her work continues to shape national and international conversations on investment security, economic statecraft, and democratic governance.
Although she has previously testified before Congressional and regulatory committees in a variety of settings, this hearing held a special moment of connection. “When I arrived at the committee chambers, two staffers came up to me to introduce themselves,” she recalled. “One is an intern on the committee and going to be a senior at IU Bloomington. The other, a 2022 IU Bloomington graduate, is a professional staffer on the committee. Both were from the Kelley School.”
Their presence, she noted, was a reminder of the far-reaching impact of Indiana University’s academic community in shaping national policy.
📄 Read her full testimony via the Atlantic Council.
🎥 Watch the full hearing on YouTube.