Military Base Retailers Face Foreign Ownership Review: Contracts Must Be Canceled Within 30 Days If Controlled by a 'Covered Nation'

The Military Installation Retail Security Act of 2025 is aiming to tighten security on U.S. military bases by kicking out any long-term retailers controlled by what the bill calls a “covered nation.” Basically, if a foreign government has too much influence over the store on base—like owning 20% or more of its equity, or having the power to direct its operations—that retailer is out.

The New Rules of Retail on Base

This isn't just about stopping new contracts. The bill mandates that the Department of Defense (DoD) cannot sign, renew, or extend any long-term concession agreements with these foreign-controlled retailers going forward. A “long-term concession agreement” is pretty much any contract, including leases, that lets a business operate on a military installation. The real heavy lift, though, is the review of existing deals. Within 180 days of this law passing, the Secretary of Defense has to check every current long-term contract. If a retailer is found to be controlled by a covered nation, the Secretary must terminate that contract within a lightning-fast 30 days.

The 30-Day Clock and the Convenience Factor

That 30-day cancellation window is where things get real for military families. Imagine the only dry cleaner, fast food spot, or specialty grocery store on a remote base is suddenly shut down because of a foreign ownership issue. The bill requires the Secretary to pull the plug quickly, which could create an immediate service gap. For military personnel and their families, this isn't an abstract national security issue; it’s a sudden loss of convenience and necessary services, especially if the base is isolated and local alternatives are few or nonexistent. The ability to replace a large, established retailer in just 30 days is a huge logistical challenge.

The Waiver Loophole and Subjective Calls

While the bill is tough, it does offer a couple of escape hatches. The Secretary of Defense can grant a waiver, allowing a foreign-controlled retailer to stay if two conditions are met: first, the goods or services are "absolutely vital" for the troops' well-being, and second, there aren't any "good alternatives." They also have to put strong security measures in place. The problem here is that “absolutely vital” and “good alternatives” are pretty subjective terms. One Secretary might decide that a specific international coffee chain is vital for morale, while another might not. This gives the DoD significant, potentially inconsistent, power to decide who stays and who goes.

CFIUS and the Annual Check-In

The Committee on Foreign Investment in the United States (CFIUS) also plays a role. Any retailer potentially controlled by a covered nation has 30 days to report their connections to CFIUS, which then has 180 days to investigate whether the retailer poses a national security risk. If CFIUS determines there is no risk, the retailer gets a pass—but they have to report their ownership structure annually to make sure they haven’t fallen back under foreign control. This mandatory reporting means that even if a retailer is cleared today, they’ll have to constantly prove they haven’t changed ownership, adding a layer of permanent compliance overhead. If they fail to report, or if they lie about who controls them, the Secretary must terminate their contract instantly. This bill puts a high priority on security, but the tight deadlines and broad definitions of foreign control mean that military personnel and their families might be the first to feel the pinch when the on-base retail landscape suddenly shifts.