The U.S. Treasury Department added nearly 60 military installations across the country to the areas over which the Committee on Foreign Investment in the United States (CFIUS) has jurisdiction.
CFIUS, working in coordination with the U.S. Department of Defense, issued the final rule that expands its ability to review certain real estate transactions by foreign persons around military bases and other installations. Another 10 military installations will have the area around them extended to come under CFIUS review.
The rule already covers more than 60 installations in 30 states. Based on legislation passed by Congress in 2018, CFIUS has the authority to review some real estate transactions near specified military installations and take action if it feels the action is warranted. Officials said this latest update expands CFIUS’s real estate jurisdiction while maintaining its focus on 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,” Secretary of the Treasury Janet L. Yellen said. “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.”
The final rule also expands CFIUS’s jurisdiction over real estate transactions within a one-mile radius of another 40 military installations; expands CFIUS’s jurisdiction over some real estate transactions within a 100-mile radius of nearly 20 additional military installations; expands CFIUS’s jurisdiction over certain real estate transactions between 1 and 100 miles around 80 installations already listed in the regulations; and updates the names of 14 military installations and the locations of seven others already listed in the regulations.
“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.”