A bill to require the Committee on Foreign Investment in the United States to annually review, update, and report on the facilities and property of the United States Government determined to be national security sensitive for purposes of review of real estate transactions under section 721 of the Defense Production Act of 1950.
- Bill Number
- S. 2116
- Origin Chamber
- Senate
- Congress
- 119th Congress, Session 1
- Policy Area
- Foreign Trade and International Finance
- Status
- Introduced
- Latest Action
- 2025-06-18: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- Last Updated
- 2025-10-09T00:06:28Z
AI-Generated Summary
Purpose of the Legislation
This bill, S. 2116, aims to strengthen national security by requiring the Committee on Foreign Investment in the United States (CFIUS)—a group of government officials that reviews foreign investments for security risks—to maintain an up-to-date list of U.S. government facilities and properties considered sensitive due to national security concerns. This list would help CFIUS evaluate real estate transactions (like purchases or leases) near these sites under section 721 of the Defense Production Act of 1950, which governs such reviews.
Key Provisions
- Creation of a Sensitive Sites List: CFIUS can create and regulate a list of U.S. government facilities and properties sensitive for national security reasons. This may include sites run by the intelligence community (agencies like the CIA or NSA that gather and analyze foreign intelligence) and National Laboratories (research centers focused on science and technology for defense and energy, as defined in the Energy Policy Act of 2005).
- Annual Reviews by CFIUS Members: By January 31 each year, every member of CFIUS (representing agencies like the Departments of Treasury, Defense, and others) must review their agency's facilities on the list. They submit a report to the CFIUS chair (the Treasury Secretary), approved by a high-level official (like an Assistant Secretary), including any suggested updates or changes to the list.
- Enhanced Reporting to Congress: CFIUS's annual report to Congress must include:
- A list of all filed notices, declarations, reviews, or investigations of foreign real estate deals involving these sensitive sites.
- A certification that the sensitive sites list has been updated based on the annual reviews.
- An option for classified (restricted-access) briefings to specific Members of Congress or their cleared staff upon request, detailing the list.
Significant Changes to Existing Law
- Amends section 721(a)(4)(C) of the Defense Production Act of 1950 by adding a new clause allowing CFIUS to formally create and maintain the sensitive sites list through regulations, expanding its authority beyond current guidelines.
- Modifies section 721(m) by:
- Adding two new reporting items (paragraphs L and M) to the annual congressional report.
- Inserting a new paragraph (4) mandating annual agency reviews and reports, while renumbering the existing paragraph (4) as (5).
These changes introduce mandatory annual processes, shifting from ad-hoc to systematic oversight of sensitive sites in foreign investment reviews.
Potential Impacts
- On Government Agencies: CFIUS member agencies (e.g., Defense, Homeland Security, Energy) will face new annual administrative duties, potentially increasing workload and coordination. This could lead to more thorough vetting of real estate deals near sensitive areas, enhancing security but possibly delaying approvals.
- On Citizens and Businesses: U.S. citizens or companies involved in real estate near sensitive sites may see indirect effects through stricter foreign investment scrutiny, which could influence property values or development. Foreign investors might face higher barriers to deals near government facilities.
- On International Relations: By focusing on national security-sensitive sites, the bill could signal a tougher U.S. stance on foreign real estate acquisitions (e.g., from countries of concern), potentially straining relations with investors from those nations while reassuring allies about U.S. security protections. No direct impact on citizens' daily lives is anticipated.
Main Stakeholders Affected
- CFIUS and Member Agencies: Primary implementers, including the Treasury Department (as chair), Defense Department, intelligence agencies, and National Laboratories; they must conduct reviews and update lists.
- Congress: Receives detailed annual reports and classified briefings, gaining better oversight of national security risks from foreign investments.
- Foreign Investors and Real Estate Developers: Subject to increased CFIUS scrutiny for transactions near sensitive sites, which could affect deal approvals or timelines.
- U.S. Government Facility Operators: Agencies managing sensitive properties (e.g., military bases, labs) will contribute to list maintenance, ensuring their sites are accurately classified.
Notable Legal, Constitutional, or Political Implications
- Legal Implications: Formalizes CFIUS's regulatory power over sensitive sites, potentially leading to new rules that clarify "national security" triggers for real estate reviews. This could invite legal challenges if lists are seen as overly broad, but it aligns with existing authority under the Defense Production Act to protect critical infrastructure.
- Constitutional Implications: Reinforces executive branch national security powers without major shifts; congressional reporting enhances legislative oversight, balancing branches of government as required by the Constitution.
- Political Implications: Introduced by a bipartisan group of senators focused on security, the bill reflects growing concerns over foreign influence near U.S. assets. It could politically bolster efforts to safeguard technology and defense sites amid geopolitical tensions, though implementation might spark debates on transparency versus classification of the sites list.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (11)
Sen. Crapo, Mike [R-ID], Sen. Rounds, Mike [R-SD], Sen. Tillis, Thomas [R-NC], Sen. Kennedy, John [R-LA], Sen. Hagerty, Bill [R-TN], Sen. Britt, Katie Boyd [R-AL], Sen. Ricketts, Pete [R-NE], Sen. Cramer, Kevin [R-ND], Sen. Moreno, Bernie [R-OH], Sen. Banks, Jim [R-IN], Sen. McCormick, David [R-PA]
Recent Actions
- 2025-06-18: Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.
- 2025-06-18: Introduced in Senate
Bill Versions
- To require the Committee on Foreign Investment in the United States to annually review, update, and report on the facilities and property of the United States Government determined to be national security sensitive for purposes of review of real estate transactions under section 721 of the Defense Production Act of 1950. — issued 2025-06-18 — PDF (4 pages)