Bill to Expand CFIUS to Land Purchases

Representative Mike Gallagher (R-WI), Chairman of the Select Committee on the CCP, and Representative Mike Thompson (D-CA) unveiled a key piece of legislation that aims to broaden the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS).

The new law, known as the Protecting U.S. Farmland and Sensitive Sites From Foreign Adversaries Act, comes as a response to growing concerns over foreign adversary entities acquiring land near sensitive sites, including military facilities.

The proposed bill represents the first amendment to the CFIUS mandate since 2018 and includes a cross-party group of co-sponsors, from both rural and urban districts.

"The United States cannot allow foreign adversaries like the Chinese Communist Party and its proxies to acquire real estate near sensitive sites like military bases or telecom infrastructure, potentially exploiting our critical technology and endangering our servicemembers," said Rep. Gallagher.

"This bill gives CFIUS jurisdiction over foreign adversary real estate transactions to guard against the threat of the CCP and other adversaries purchasing land for malign purposes, and it also encourages CFIUS to consider food security issues as it evaluates the national security risk of a given transaction."

The proposed legislation includes the following provisions:

1. It expands CFIUS' authority to oversee all land purchases by foreign adversary entities, barring exceptions for urban real estate and single housing units.
2. It authorizes CFIUS to consider U.S. food security, including through biotechnology acquisitions, as a factor in its national security reviews. It also necessitates the Secretary of Agriculture's vote in CFIUS reviews of transactions involving farmland or agriculture technology.
3. It sets a "presumption of non-resolvability" for CFIUS reviews, which means a higher approval threshold for transactions by a foreign adversary entity purchasing land near sensitive sites.
4. It mandates CFIUS filing for foreign adversary entities making land purchases near sensitive sites to keep CFIUS informed about ongoing real estate purchases.
5. It expands the list of sensitive national security sites designated for CFIUS jurisdiction.

The term "foreign adversary" is defined as:

The People’s Republic of China, including all Special Administrative Regions; Cuba; Iran; North Korea; The Russian Federation; and Venezuela during any period in which Nicolás Maduro is President of the Republic.

The term "foreign adversary entity" is described as:

• A foreign adversary;
• A foreign person subject to the jurisdiction of, or organized under the laws of, a foreign adversary; and
• A foreign person owned, directed, or controlled by an entity described in the previous two points.

The expanded definition of a "Sensitive Site" includes:

• Military installations; Special use airspace; U.S. intelligence facilities 
• Research and development centers
• Airports; Maritime ports
• Significant telecommunicaion facilities; Electric power plants
• Any other sites as determined by the Secretary of Defense or the Secretary of Homeland Security.

Sponsors include: Rep. Dan Newhouse (R-WA), Rep. John Garamendi (D-CA), Rep. Dusty Johnson (R-SD), Rep. Ed Case (D-HI), House GOP Conference Chair Elise Stefanik (R-NY), Rep. Jim Costa (D-CA), Rep. Frank Lucas (R-OK), Rep. Jimmy Panetta (D-CA), Rep. Rob Wittman (R-VA), Rep. Jason Crow (D-CO), Rep. Randy Feenstra (R-IA), Rep. Salud Carbajal (D-CA), Rep. Jim Banks (R-IN), Rep. Salud Carbajal (D-CA), Rep. Mary Peltoa (D-AK), and Rep. Ashley Hinson (R-IA).

Missing from the list of supporters was Rep. Beth Van Duyne (R-TX) who recently introduced the Protecting American Farmland Act proposings a 60% excise tax on "Countries of Concern" attempting to buy American farm and ranch land. 

[Text of Bill]