The United States government is seeking to broaden the authority of the Treasury committee to scrutinize land sales near American military sites involving foreign buyers. Through new rulemaking proposed by the Treasury, the U.S. Committee on Foreign Investment in the United States (CFIUS) would be granted increased oversight over land transactions near an additional 56 military installations, bringing the total number to 227 sites. This initiative stems from a 2018 law that gave the committee the power to review real estate deals near sensitive locations across the country. CFIUS, composed of representatives from various federal departments, has the mandate to evaluate corporate transactions for potential national security risks and can mandate changes in ownership or complete divestment from the U.S.
The recent announcement of rulemaking, made on Monday, follows President Joe Biden’s order in May to prevent a Chinese-backed cryptocurrency mining company from acquiring land near a Wyoming nuclear missile site, citing concerns over national security implications. Treasury Secretary Janet Yellen stated that the Biden administration is dedicated to utilizing robust investment oversight mechanisms to safeguard national security interests, including protection of military installations from external threats. The rulemaking process, initiated in May 2023, aims to authorize CFIUS to review land sales near military bases, prompted by controversy surrounding plans from the Fufeng Group to construct a $700 million wet corn milling facility approximately 12 miles from the Grand Forks Air Force Base, which houses vital air and space operations.
The proposed rule will be subject to a 30-day public comment period for input and feedback before potential implementation. The U.S. has recently imposed significant tariffs on various goods imported from China, including electric vehicles, semiconductors, solar equipment, and medical supplies, as part of broader efforts to address trade concerns and safeguard national interests.
