Foreign Purchases of Land Near Military Bases Face Mandatory Review Under New Bill

The Protecting Military Installations and Ranges Act of 2025 significantly expands the federal government's power to scrutinize and potentially block foreign purchases or leases of real estate near military facilities. Specifically, the bill mandates that the Committee on Foreign Investment in the United States (CFIUS) review any such transaction within 100 miles of a military installation or 50 miles of certain military airspace or training routes, if the buyer is connected to Russia, China, Iran, or North Korea (Section 2). This means deals that previously might have flown under the radar will now face mandatory federal scrutiny.

Real Estate Radar: What's Changed?

This law broadens CFIUS's reach considerably. Before, CFIUS review was largely voluntary for real estate deals. Now, it's required for any transaction involving entities tied to those four countries if the property falls within the specified zones. For example, if a Chinese-backed company wants to buy farmland within 80 miles of a U.S. Army base, that purchase must be reviewed by CFIUS. The bill also requires the Department of Defense to pause its own review of any energy project on land subject to CFIUS review, potentially delaying those projects until the CFIUS process is complete (Section 3). This could mean a hold-up for, say, a wind farm project if the land deal is under CFIUS scrutiny.

Checking the Flight Path: Potential Turbulence

While the bill aims to protect national security, there are practical considerations. The 100-mile radius could encompass vast areas, including land with little direct connection to military activities. This broad scope might create delays and uncertainty for real estate transactions and potentially impact local economies that rely on foreign investment. Furthermore, the mandatory pause on energy project reviews, pending CFIUS's decision, could slow down the development of new energy infrastructure. If CFIUS determines the deal poses a security threat and sends it to the President, the Secretary of Defense is required to find the project poses an unacceptable risk. (Section 3).

Connecting the Dots: Bigger Picture

The Protecting Military Installations and Ranges Act of 2025 significantly updates the legal landscape around foreign investment in U.S. real estate, particularly near sensitive military areas. It builds upon existing laws, like the Defense Production Act of 1950, by expanding the definition of "covered transactions" to include these specific real estate deals (Section 2). The bill's requirement for CFIUS review, and the potential for project delays, adds another layer of complexity to transactions that could previously proceed without this level of federal oversight. While it will help to protect important military assets, it will be interesting to see how the broad scope of this bill plays out in practice.