CFIUS Issues Proposed Rule to Expand Coverage of Real Estate Transactions Near Military Installations
On July 8, 2024, the Department of the Treasury’s Office of Investment Security issued a Notice of Proposed Rulemaking seeking to add 59 military installations, across 30 states, to the list of installations around which the Committee on Foreign Investment in the United States (CFIUS) has jurisdiction regarding certain real estate transactions involving foreign persons. This proposed rule is the result of a recent Department of Defense (DoD) assessment of its military installations. The proposed rule would:
- Expand CFIUS’s jurisdiction over real estate transactions to include those within a 1-mile radius around 40 additional military installations;
- Expand CFIUS’s jurisdiction over real estate transactions to include those within a 100-mile radius around 19 additional military installations;
- Expand CFIUS’s jurisdiction over real estate transactions between 1 mile and 100 miles around eight military installations already listed in the CFIUS regulations;
- Update the names of 14 military installations already listed in the CFIUS regulations to reflect official installation name changes by the DoD; and
- Update the location of seven military installations already listed in the current CFIUS regulations to more directly identify the installations’ approximate location.
In addition to this expanded listing of covered installations, the proposed rule seeks to amend the definition of the term “military installation.” Consistent with name changes of certain listed installations, this term would be amended to add Space Force bases, stations, and major annexes thereof, containing satellite, telemetry, tracking, or commanding systems. The revised definition would also clearly cover major Army depots, arsenals, and military terminals, as well as Marine Corps installations, logistics battalions, and support facilities.
