Foreign Real Estate Deals Near Military Bases Face Mandatory Security Review Under New Bill Targeting China, Russia, Iran, North Korea

This proposed legislation, the "Protecting Military Installations and Ranges Act of 2025," significantly expands the government's power to scrutinize certain foreign real estate deals. Specifically, it pulls purchases or leases of property near U.S. military sites into the review process of the Committee on Foreign Investment in the United States (CFIUS), the body that vets foreign investments for national security risks. This new oversight applies if the foreign buyer or lessee is linked (owned, controlled, acting for, or subsidized by) to the governments of China, Russia, Iran, or North Korea.

Expanding the Watchlist: Real Estate Near Military Sites

The bill casts a wide net geographically. Any purchase, lease, or concession of private or public land by entities tied to the specified countries would trigger CFIUS review if it's within 100 miles of a military installation or 50 miles of a military training route. It also covers land near special use airspace, controlled firing areas, or military operations areas managed by the Department of Defense. According to Section 2, this isn't just an optional review; the bill mandates CFIUS initiate a review for these specific real estate transactions. Furthermore, relevant members of Congress – Senators from the state and the Representative from the district where the site is located – must be notified about these reviews.

Hitting Pause: Energy Projects and Development Hurdles

There's a significant knock-on effect for energy projects outlined in Section 3. If a property intended for an energy project falls under this new CFIUS review process, related approvals from the Department of Defense (under Title 10 U.S.C. Sec 183a) and the Department of Transportation/FAA (under Title 49 U.S.C. Sec 44718) must be put on hold until CFIUS concludes its action. Crucially, if CFIUS determines the land deal poses a national security threat and refers it to the President, the Secretary of Defense is required to conclude the energy project itself poses an unacceptable risk. This effectively creates a pathway where a CFIUS flag on the land deal automatically halts the associated energy project, potentially causing major delays or cancellations for developments like wind or solar farms located within these expanded zones.

Reading Between the Lines: Security vs. Economic Reality

While the stated goal is protecting military installations, the practical implications could be complex. The 100-mile radius around installations covers vast areas, potentially impacting numerous communities and routine real estate transactions. Property owners and developers in these zones might face new hurdles if dealing with foreign entities, even those with tangential links to the listed countries. Questions arise around how terms like 'controlled by' or 'receiving subsidies' will be interpreted, creating potential uncertainty for international business and investment. While enhancing security is the aim, the bill introduces mandatory reviews and project holds that could slow down economic activity and energy development in significant portions of the country, particularly affecting investors and companies associated with the targeted nations.