Protecting U.S. Farmland and Sensitive Sites From Foreign Adversaries Act

Overview

• Bill: H.R. 8700
• Session: 119th Congress
• Title: Protecting U.S. Farmland and Sensitive Sites From Foreign Adversaries Act
• Purpose: To safeguard U.S. food security and national security by expanding the reach of the Committee on Foreign Investment in the United States (CFIUS) over real estate transactions, broadening the set of “sensitive sites,” and creating protections against foreign adversary purchases of land and agricultural land near sensitive sites.

Main purpose and intent

• Strengthen U.S. food security and national security by tightening scrutiny of land-related transactions involving foreign adversaries.
• Expand and clarify the jurisdiction of CFIUS with respect to real estate transactions, including agricultural land.
• Elevate certain land deals as “elevated risk” transactions requiring enhanced review and potential protective actions.
• Preserve state authority to impose its own restrictions on foreign ownership of land.

Key provisions and changes

1. Expanded definitions (Section 2)

   • Adds “Elevated Risk Real Estate Transaction” to the Defense Production Act (DPA) framework.
     • Applies when real estate is at or near sensitive sites, potential to enable intelligence gathering, affect national security activities, or is agricultural land subject to agricultural FDI disclosure.
   • Broadens the set of “Foreign Adversaries” to include:
     • China (including SARs), Cuba, Iran, North Korea, Russia, Venezuela.
   • Defines “Foreign Adversary Person” and expands “Sensitive Site” to include:
     • Military installations, training routes, restricted airspace, various military and defense facilities, DoD-cleared facilities, intell community facilities, NASA facilities, federally funded R&D centers, DoD-affiliated or university-related research centers, S&T reinvention laboratories, airports, maritime ports, critical communications infrastructure (including key telecom facilities), electric power plants, and other sites as determined by DoD or DHS.

2. Protecting U.S. Food Security (Section 3)

   • Adds a new core consideration for DPA reviews:
     • Requires assessment of current and long-term U.S. food, water, and agricultural commodity needs, including potential effects of foreign-adversary acquisitions of biotechnology related to agriculture.

3. Expanded CFIUS real estate jurisdiction (Section 4)

   • Expands CFIUS authority to cover:
     • Purchase or lease (or concessions) of private or public real estate in the U.S. by foreign adversary persons.
     • Includes new language to treat transfers near or involving sensitive sites as elevated risk.
   • Modifies and clarifies how real estate transactions near sensitive sites are assessed and categorized within the CFIUS framework.

4. Mandatory declarations for elevated risk deals (Section 4, Subsection b)

   • Elevates certain real estate transactions to require explicit declarations (filings) under the DPA.

5. Presumption and handling of elevated risk real estate transactions (Sections 5)

   • Establishes that elevated risk real estate transactions are presumed to pose national security risks.
   • Requires clear and convincing evidence to override the presumption, with a detailed notification to multiple congressional committees if such a determination is made.

6. Agriculture sector representation (Section 6)

   • Adds an Agriculture Representative to the review process:
     • The Secretary of Agriculture would participate in all transactions related to agricultural land, agriculture biotechnology, and related activities.

7. Preservation of state authority (Section 7)

   • States that nothing in the act preempts state laws restricting foreign-adversary ownership of land, preserving state sovereignty and existing restrictions.

8. Rulemaking timeline (Section 8)

   • Requires the CFIUS to issue implementing rules within 120 days of enactment.

Who would be affected

• Foreign adversary entities and individuals seeking to purchase, lease, or gain concessions in U.S. real estate, including agricultural land.
• Real estate and agricultural land markets, especially transactions near sensitive sites.
• U.S. government agencies: CFIUS, the Department of Agriculture, Department of Defense, Department of Homeland Security, Department of Transportation, Federal Communications Commission (for critical infrastructure), and relevant agencies managing sensitive sites.
• State and local governments, which retain authority to restrict foreign land ownership under their laws.

Procedural and timeline aspects

• Referred to multiple committees: Financial Services (primary), Foreign Affairs, and Energy and Commerce.
• Requires CFIUS rulemaking within 120 days after enactment to implement amendments.
• Introduces mandatory declarations for elevated risk transactions and new notification requirements to multiple congressional committees if a determination is made.
• Creates a framework for ongoing assessments of food security implications tied to land and biotech acquisitions.

Potential implications (high-level)

• Increased scrutiny and potential blocking of certain foreign-adversary real estate transactions, especially near sensitive sites and agricultural lands.
• Greater emphasis on national security integration into food and agricultural supply chain considerations.
• More robust collaboration between CFIUS, the agriculture sector, defense, and intelligence communities.
• State level continuity of sovereignty and control regarding land ownership restrictions remains intact.

Note: As introduced, the bill outlines definitions, review enhancements, and procedural steps; actual impact would depend on final congressional action, subsequent rulemaking by CFIUS, and implementation details.