U.S. Treasury Expands CFIUS Authority Over Key Real Estate Deals Near Military Bases

The U.S. Treasury announced a significant expansion of its security review authority, targeting foreign real estate purchases near military bases. This extends the Committee on Foreign Investment in the United States' (CFIUS) jurisdiction to 227 military sites across 30 states. The move follows concerns over national security risks posed by foreign acquisitions near sensitive military installations.

The U.S. Treasury announced on Monday a significant expansion of its security review authority, focusing on foreign real estate purchases near American military bases. This move adds 56 facilities across 30 states to its review list. A Treasury official stated that the new rule would extend the Committee on Foreign Investment in the United States' (CFIUS) jurisdiction to approximately 227 military installations.

This expansion comes shortly after a previous CFIUS review gave a Chinese-linked company and its partners 120 days to sell property near a U.S. Air Force base in Wyoming. The property was intended for cryptocurrency mining. National security concerns have grown regarding Chinese-linked property acquisitions near sensitive military sites. A 2018 law had already broadened CFIUS' authority to review certain foreign investments in U.S. real estate posing national security risks.

The proposed rule expands CFIUS' jurisdiction over land deals within one mile of 40 additional military sites and within 100 miles of 19 more installations. Eight facilities will move from a one-mile radius to a 100-mile radius for review, while three will be removed due to other designations. The largest expansion of CFIUS' authority since 2018, this update aims to maintain a focus on national security.

(With inputs from agencies.)