This bill prohibits long-term concession agreements with retailers controlled by countries that pose a national security risk from operating on military installations, with waiver options for essential services and requirements for national security reviews and disclosures.
Pat Harrigan
Representative
NC-10
The Military Installation Retail Security Act of 2025 prohibits the Department of Defense from entering into or renewing long-term concession agreements with retailers controlled by countries that pose a national security risk, with a waiver option if essential goods or services are not otherwise available. It mandates retailers to disclose relationships with these countries and requires review and potential termination of existing agreements. The Committee on Foreign Investment in the United States (CFIUS) is directed to investigate and provide determinations on national security implications. The Act defines key terms to clarify the scope and enforcement of these provisions.
New Bill Targets Foreign-Owned Retailers on Military Bases, Mandates Security Reviews
This legislation, the Military Installation Retail Security Act of 2025, sets new rules for shops and businesses operating on U.S. military bases under long-term agreements. The core idea is to block retailers controlled by specific foreign countries, labeled 'covered nations,' from signing new deals or renewing old ones to operate on these installations. The main goal cited is enhancing national security.
Securing the Base Exchange: What's Changing?
The bill amends Title 10 of the U.S. Code, adding specific requirements for retailers wanting long-term spots on military bases. It explicitly prohibits the Department of Defense from entering into, renewing, or extending these agreements with businesses considered 'controlled by a covered nation.' Control is defined fairly specifically: being organized under a covered nation's laws, having 20% or more ownership by a covered nation, or being subject to direct or indirect control by one. This aims to limit potential security risks associated with foreign influence directly on military installations.
Under the Microscope: How Retailers Get Vetted
Retailers potentially affected ('covered retailers') face new scrutiny. Within 30 days of the bill's enactment, they must notify the Committee on Foreign Investment in the United States (CFIUS) about any direct or indirect ties to a 'covered nation.' They can't operate on a base unless CFIUS gives the green light after reviewing their notice. CFIUS has 180 days post-investigation to determine the national security implications. If approved, these retailers aren't off the hook; they need to file annual disclosures about any ownership changes that might shift control towards a covered nation. Failure to comply, or misrepresenting ownership initially, can lead to agreement termination.
Shopping on Base: What It Means for You (and Them)
For military personnel and families, this could mean changes to the types of stores or services available on base if certain foreign-controlled retailers are phased out. However, the bill includes a waiver. The Secretary of Defense can allow a restricted retailer to continue operating if they provide 'vital goods or services' with no 'reasonable alternatives,' and if adequate security measures are in place. This decision requires justification and a report to Congress within 30 days. Existing long-term agreements aren't automatically safe either; the Secretary must review all current contracts with 'covered retailers' within 180 days to check for control by a 'covered nation' and terminate them if such control is found. This adds a layer of oversight but also introduces some uncertainty about which retailers might remain long-term fixtures on military installations.