July 17, 2024

U.S. Treasury Department Issues Proposed Rule Expanding CFIUS Coverage of Real Estate Transactions Near Military Installations

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On July 8, 2024, the U.S. Treasury Department (“Treasury”), as the lead agency of the Committee on Foreign Investment in the United States (“CFIUS” or “the Committee”), issued a proposed rule to expand the Committee’s jurisdiction over certain transactions by foreign persons involving real estate in the United States. This proposed rule would add over 50 military installations to the existing list of installations around which CFIUS has jurisdiction.

Specifically, the proposed rule would:

Expand CFIUS’s jurisdiction over real estate transactions to include those within a one-mile radius around 40 additional military installations;
Expand CFIUS’s jurisdiction over real estate transactions to include those within a 100-mile radius around 19 additional military installations;
Expand CFIUS’s jurisdiction over real estate transactions between 1 mile and 100 miles around eight military installations already listed in the regulations;
Update the names of 14 military installations already listed in the regulations to better assist the public in identifying the relevant sites; and
Update the location of seven military installations already listed in the current regulations to better assist the public in identifying the relevant sites.

In addition to the above expansion of CFIUS jurisdiction, the proposed rule would also amend various definitions within the regulations.

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