U.S. Treasury Expands Security Review on Foreign Real Estate Purchases

The U.S. Treasury has announced an expansion of its security review authority to include more foreign real estate purchases near military bases. This action adds 56 facilities across 30 states to its review list, significantly increasing the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS). The proposed rule is set to cover more land deals, reflecting the U.S.'s growing concerns over national security, especially regarding Chinese-linked property acquisitions.

The U.S. Treasury announced on Monday a significant expansion of its security review authority concerning foreign purchases of real estate near American military bases. This move adds 56 facilities across 30 states to its review list, substantially widening the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to about 227 military installations.

This expansion follows a recent CFIUS review that gave a Chinese-linked company and its partners 120 days to divest property near a U.S. Air Force Base in Wyoming, a site integral to the U.S. nuclear arsenal. With increasing concerns over national security risks, particularly from Chinese-linked acquisitions near crucial military sites, the U.S. has intensified its scrutiny of such investments.

The proposed rule would extend CFIUS' oversight to land deals within one mile of 40 additional military sites and within 100 miles of 19 extra installations. According to a Treasury official, this represents the largest jurisdictional expansion for CFIUS since the 2018 law broadening its authority was enacted.

"This latest update vastly expands the reach of CFIUS' real estate jurisdiction while maintaining its sharp focus on national security," an official stated.

(With inputs from agencies.)