CFIUS Must Now Annually Update and Report on Sensitive National Security Real Estate

This legislation tightens the screws on how the U.S. government tracks and reviews foreign real estate purchases near sensitive national security sites. Specifically, it requires the Committee on Foreign Investment in the United States (CFIUS)—the interagency group that vets foreign investments for security risks—to create and annually update an official list of government facilities and property deemed “national security sensitive.” This includes sites belonging to the intelligence community and National Laboratories.

The Security Perimeter Gets Official

Before this bill, CFIUS already reviewed real estate transactions near sensitive sites, but this legislation formalizes the process. It mandates that CFIUS must establish, through official rules, a specific list of sensitive U.S. Government facilities. Think of this as defining the exact boundaries of the security perimeter. By making the list official and rule-based, it aims to reduce ambiguity about which real estate deals fall under heightened scrutiny. For foreign investors, this means the goalposts for what constitutes a sensitive location should become clearer, even if the scrutiny level remains high.

Annual Check-Ups and Reporting

One of the biggest procedural changes is the mandatory annual review. Every January 31st, each member agency of CFIUS (like the Departments of Defense, Treasury, etc.) must review their own sensitive holdings and suggest updates to the official list. This isn't a suggestion box; the Committee must then certify that the official list reflects these necessary updates. This constant maintenance is key because government assets change, and what was sensitive five years ago might not be today, or vice-versa. The bill ensures the list used to screen foreign investment is current, not based on outdated maps.

Furthermore, the bill adds new reporting duties. CFIUS must now include a detailed list in its annual report of every notice, declaration, review, or investigation completed during the reporting period that involved these newly defined sensitive government facilities. For the general public, this means more transparency about the volume of transactions being reviewed near these critical sites.

What This Means for Real Estate and Investment

For foreign investors looking to buy property in the U.S., particularly near military bases, intelligence facilities, or places like Los Alamos or Lawrence Livermore National Laboratory, this bill signals increased, and more consistent, scrutiny. The annual review process ensures that the list of off-limits or highly sensitive areas is always fresh. If you’re a developer or an investor, you need to be aware that the list of properties triggering a CFIUS review will be actively managed and potentially expanded if agencies identify new sensitive areas.

While this is largely a procedural bill focused on government efficiency and national security, the real-world impact is clear: the U.S. government is formalizing and strengthening its defenses against foreign acquisition of land near critical assets. It’s about making sure that the sensitive maps used for security reviews are updated yearly, not just gathering dust in a file cabinet.