New Bill Aims to Block Retailers Tied to China, Russia from U.S. Military Bases

This proposed legislation, the 'Military Installation Retail Security Act of 2025,' essentially draws a new line in the sand for businesses operating on U.S. military soil. The core idea is to prevent retailers with significant ties to specific foreign nations – namely China, Russia, North Korea, and Iran (as defined in 10 U.S.C. 4872) – from signing new long-term deals to set up shop on domestic military installations. It also triggers a review of existing contracts.

Checking the Lease: Who Stays, Who Goes?

Under this bill, the Department of Defense (DoD) can't renew or sign new long-term agreements (like leases or licenses for stores on base) with businesses considered 'controlled by a covered nation.' The definition here is key: it includes companies organized under the laws of those nations, or where 20% or more equity is owned by them, or if they're generally directed by one of those governments. Think about the shops, food courts, or service providers you see on base – this bill asks: who ultimately pulls the strings?

For businesses already operating under such agreements, the DoD has 180 days to investigate if they fall under this 'controlled' definition. If a company is found to be controlled by China, Russia, North Korea, or Iran, its contract must be terminated within 30 days. This could mean some familiar storefronts on military bases might have to close up shop relatively quickly.

The Escape Hatch: Waivers and National Security Checks

There's an out, but it's specific. The Secretary of Defense can grant a waiver, allowing a business to stay or a new one to come in, if that retailer provides 'vital goods or services' with 'no reasonable alternatives,' and the DoD believes security risks are properly managed. Every time a waiver is granted, Congress needs a detailed report explaining why.

Additionally, businesses with existing contracts that have any relationship (direct or indirect) with these covered nations must report it to the Committee on Foreign Investment in the United States (CFIUS) within 30 days. CFIUS will then investigate potential national security risks. If CFIUS gives the all-clear, the business can stay but must file annual reports on any ownership changes. Failure to report accurately or trying to hide ownership could lead to immediate contract termination.

What This Means for Base Life

The immediate impact could be a shift in the types of businesses operating on military installations. Depending on which retailers are flagged during the review, military personnel and their families might see fewer choices for certain goods or services, at least temporarily, especially if finding a replacement isn't straightforward. The goal is heightened security, potentially screening out businesses that could pose intelligence or other risks due to foreign government influence. However, the practical effect hinges on how many current retailers have ties to the specified nations and how strictly the waiver conditions are applied. It also potentially opens doors for domestic retailers or those from allied nations to fill any gaps.