Treasury to expand oversight of foreign entities’ property purchases near military bases
(The Center Square) – The U.S. Department of the Treasury issued a final rule Friday that expands the government’s ability to review foreign real estate transactions near more than 60 military bases and installations across 30 states.
The Treasury Department worked with the U.S. Department of Defense on the rule, which gives the Committee on Foreign Investment in the United States, or CFIUS, new authority. CFIUS has the authority to review real estate transactions near military installations and to take action in appropriate circumstances. The final rule adds nearly 60 military installations to an existing list of military installations around which CFIUS has jurisdiction over real estate transactions and CFIUS jurisdiction around nearly 10 existing installations will be extended.
“This latest update expands the reach of CFIUS’s real estate jurisdiction while maintaining its sharp focus on national security,” Treasury said in a statement.
Secretary of the Treasury Janet Yellen said the rule is focused on U.S. security.
“This final rule will significantly increase the ability of CFIUS to thoroughly review real estate transactions near bases and will allow us to deter and stop foreign adversaries from threatening our Armed Forces, including through intelligence gathering,” she said inn a statement.
CFIUS has jurisdiction over real estate transactions through the Foreign Investment Risk Review Modernization Act of 2018. That allows CFIUS to review foreign real estate deals in the United States close to a military installation, another facility or other government property. The CFIUS regulations governing real estate transactions identify a subset of military installations around which certain real estate transactions are covered under CFIUS’s jurisdiction.
State lawmakers in Alabama, Florida, Louisiana, Ohio and Texas have discussed options to restrict who can buy near sensitive facilities.
“Today’s final rule is a significant milestone in safeguarding critical U.S. military and defense installations,” Assistant Secretary for Investment Security Paul Rosen said. “The expansion of CFIUS jurisdiction around more than 60 military installations across 30 states highlights the work of CFIUS to be nimble and responsive to the evolving nature of the threats we face in the context of foreign investment that raises national security concerns.”
The final rule will become effective 30 days after publication in the Federal Register.
