Treasury ‘significantly’ expands foreign investment screening near military sites
The US Treasury Department, as chair of the Committee on Foreign Investment in the United States (‘CFIUS’), has announced a final rule that ‘will significantly expand its oversight of foreign real estate transactions near more than 60 military installations across 30 states, marking a major enhancement of national security screening powers.’
The rule adds the military installations to an existing list where foreign property deals face scrutiny and extends CFIUS jurisdiction around approximately ten existing sites.
‘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,’ Treasury Secretary Janet Yellen said, announcing the changes in a press release, 1 November.
The expanded oversight includes new one-mile screening zones around 40 additional military sites and 100-mile radius reviews near 19 more installations. The rule also extends CFIUS jurisdiction to areas between one and 100 miles around eight already-listed facilities.
‘Today’s final rule is a significant milestone in safeguarding critical US military and defense installations,’ said Assistant Secretary for Investment Security Paul Rosen. He said the action ‘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 enhanced screening authority stems from the Foreign Investment Risk Review Modernization Act of 2018 (‘FIRRMA’), which empowered CFIUS to review property purchases, leases or concessions by foreign entities near sensitive US government facilities that could enable intelligence gathering or surveillance risks.
The decision takes effect 30 days after publication in the Federal Register and updates the names and locations of multiple facilities already under CFIUS jurisdiction.
