New rule blocks foreign buyers near military bases
Amidst concerns over foreign actors attempting to purchase land near sensitive U.S. military bases, a new federal rule has been implemented to expand the authority of the Treasury committee in overseeing such transactions. Lawmakers from various states have raised alarms, particularly regarding Chinese companies, prompting the Biden administration to take action to tighten regulations on these purchases.
The rule is built upon a 2018 law that empowers the Treasury’s Committee on Foreign Investment in the United States (CFIUS) to thoroughly assess the implications of foreign investment in real estate transactions and asset transfers. Approximately 60 military installations and related properties will now receive enhanced protections under this new rule.
Some of the key installations safeguarded by this rule include Joint Base Myer-Henderson Hall in Arlington, Va., Letterkenny Army Depot in Chambersburg, Pa., Cold Bay Regional Radar Site and Naval Support Facility Ketchikan in Alaska, Pueblo Chemical Depot in Colorado, Camp Blaz in Dededo, Guam, and the Naval Logistics Support Annex in Okahumpka, Fla.
Florida Governor Ron DeSantis, a key proponent of curbing Chinese influence, has been particularly vigilant in safeguarding against potentially compromising land transactions in his state. In fact, Florida has enacted three significant laws aimed at limiting Chinese influence within its borders. One such law prohibits Chinese citizens from purchasing land in Florida, although this legislation is currently facing legal challenges.
Similarly, in North Dakota, a proposed land purchase by a Chinese company near Grand Forks Air Force Base was met with opposition from the state’s Republican senators. Sens. John Hoeven and Kevin Cramer raised concerns about the transaction, citing it as a possible national security threat. Following this controversy, the Treasury introduced a rule in May 2023, requiring foreign buyers to secure federal approval for land purchases near eight military sites.
Treasury Secretary Janet Yellen commended the new rule in statements to the Associated Press, emphasizing the Biden administration’s commitment to utilizing investment screening tools to safeguard America’s national security. The administration aims to protect military installations from external threats through such regulatory measures.
Notably, the Treasury’s recent actions come on the heels of a White House directive that thwarted a planned purchase by a Chinese cryptocurrency firm near Francis E. Warren Air Force Base in Cheyenne, Wyoming, underscoring the government’s vigilance in safeguarding critical military assets.
