In an effort to bolster national security, the U.S. Treasury Department announced on Monday it wants to expand the Treasury committee’s jurisdiction to review land deals involving foreign buyers near military bases.
Plans to extend, announced on Monday, would see the U.S. Committee on Foreign Investment in the United States (CFIUS) extend its jurisdiction to include 56 additional military sites, raising the total number under review to 227. CFIUS is responsible for investigating corporate transactions that may pose national security risks.
The expansion follows a 2018 legislative act that empowered CFIUS to evaluate real estate deals near sensitive locations nationwide. The committee, composed of representatives from the Departments of State, Justice, Energy, Commerce, and others, holds the authority to mandate changes in ownership structures or to enforce divestitures.
The proposed expansion will be subject to a 30-day public comment period, inviting stakeholders to weigh in on the implications of these expanded powers.
This move is part of a broader strategy by the U.S. to mitigate foreign influence and protect critical infrastructure.
It comes as there have been significant concerns in recent years over land sales involving foreign buyers, specifically those near U.S. military bases, due to potential national security risks. Several states and the federal government have already begun to tighten regulations on foreign land purchases near military bases.
In May, President Joe Biden in May issued a divestment order blocking a Chinese-backed cryptocurrency mining firm from owning land near a Wyoming nuclear missile base, citing its proximity as a “national security risk.”
Treasury Secretary Janet Yellen reiterated the administration’s stance in a statement, “We are committed to using our strong investment screening tool to defend America’s national security, including actions that protect military installations from external threats.”
Newsweek has reached out to Yellen’s office via email for comment.
In addition, in 2021, the Chinese Fufeng Group’s purchase of land 12 miles from the Grand Forks Air Force Base in North Dakota raised national security concerns. Despite local and state officials initially supporting the $700 million wet corn milling plan project for economic reasons, the U.S. Air Force later deemed the proximity a significant threat to national security, leading to the project’s cancellation.
More recently, in May 2023 following the controversy involving the Fufeng Group, rulemaking began to give CFIUS the power to review land sales near military bases. The proximity of the project, just 12 miles from the base, sparked significant concern, prompting the initial push for more CFIUS authority.
U.S. Secretary of the Treasury Janet Yellen speaks during the Financial Stability Oversight Council Conference on Artificial Intelligence & Financial Stability at the U.S. Treasury Department on June 06, 2024 in Washington, DC. In an…
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