Biden proposes stricter rules for foreign land purchases near military bases.

Terri WuMay 5, 2023

The Biden Administration Proposes Tighter Controls on Foreign Land Purchases

The Biden administration is taking steps to tighten controls on foreign land purchases by adding eight additional military installations to the list for national security review. This move expands the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS), a federal panel that reviews foreign acquisitions for national security risks.

What Does This Mean?

Once finalized, any nonexcepted real estate purchases or leases within a 100-mile radius near those additional sites will be considered a CFIUS “covered transaction.” This was announced in a federal register notice that was posted on May 4 and scheduled to be published on May 5.

The latest federal proposal comes as ownership of U.S. land by foreign adversaries, especially China, has been an increasing concern for state governments and the general public. Republican-led states such as Florida, Texas, Virginia, and South Dakota have undertaken state-level legislative efforts to rein tighter control on foreign land purchases.

Why Is This Important?

Some of the proposed additional sites are related to high-profile cases that attracted national attention. For example, a Chinese company bought 370 acres of farmland to build a corn-milling plant in Grand Forks, North Dakota. The land is within 15 miles of Grand Forks Air Force Base, which houses sensitive drone, satellite, and surveillance technology and is among the proposed eight additions.

In December 2022, CFIUS determined that the land sale for the Fufeng project was “not a ‘covered transaction’” under the committee’s jurisdiction. However, at the end of January, the Department of the Air Force stated that the branch has an “unambiguous” view that “the proposed project presents a significant threat to national security with both near- and long-term risks of significant impacts to our operations in the area.”

What Are the Current Regulations?

CFIUS currently has a list of more than 200 military sites around which nonexcepted real estate purchases or leases are considered covered transactions. As defined by the Department of Defense, the covered distances may be a one-mile radius, a 100-mile radius, or territory boundaries. Transactions in urbanized or single-family housing areas may qualify as exceptions.