The U.S. Department of the Treasury, in its role as Chair of the Committee on Foreign Investment in the United States (CFIUS), has issued a final rule expanding its oversight of real estate transactions involving foreign persons near military installations. This decision was made in collaboration with the U.S. Department of Defense and affects over 60 military bases across 30 states.
The rule is an extension of CFIUS's authority, granted by Congress in 2018, to scrutinize certain real estate transactions near designated military sites. It aims to enhance national security by preventing potential threats posed by foreign investments that could enable intelligence gathering or surveillance activities around these sensitive areas.
Treasury Secretary Janet L. Yellen emphasized the importance of this measure for national security: “The Biden-Harris Administration will continue to use our strong investment screening tools to advance America’s national security and protect our military installations from external threats.” She noted that this rule would improve CFIUS's ability to review relevant real estate transactions effectively.
Assistant Secretary for Investment Security Paul Rosen described the final rule as a "significant milestone" for protecting critical U.S. defense locations. He highlighted CFIUS's adaptability and responsiveness to evolving threats related to foreign investments that may raise national security concerns.
The new regulations allow CFIUS to evaluate purchases, leases, or concessions by foreign entities within close proximity to military installations or other sensitive government properties. The aim is to mitigate risks associated with intelligence collection and surveillance on such sites.
Key changes under the new rule include extending CFIUS jurisdiction within a one-mile radius around 40 additional military installations and within a 100-mile radius around 19 more facilities. Furthermore, jurisdiction is expanded between one mile and 100 miles around eight existing installations already covered under current regulations.
Additionally, updates have been made to assist public identification of relevant sites through revised names and locations for several listed military installations.
This final rule takes effect 30 days after its publication in the Federal Register and can be accessed at https://www.cfius.gov/.
