Treasury’s new rule expands its oversight of foreign real estate near U.S. bases, including the Navy Annex in Okahumpka and Marine Corps Blount Island in Jacksonville.

WASHINGTON — The U.S. Treasury Department on Friday issued a final rule expanding the government’s authority to review foreign real estate transactions near more than 60 military bases and installations in 30 states.

The Treasury Department worked with the U.S. Department of Defense on the rule giving new authority to the Committee on Foreign Investment in the United States (CFIUS). CFIUS has the authority to review real estate transactions near military installations and take action in appropriate cases. The final rule will add approximately 60 military installations to the existing list of military installations over which CFIUS has jurisdiction over real estate transactions, while CFIUS’ jurisdiction of approximately 10 existing facilities will also be expanded.

“This latest update expands the scope of CFIUS’s real estate jurisdiction while maintaining a sharp focus on national security,” Treasury Department officials said in a statement. he said.

Treasury Secretary Janet Yellen said the rule focuses on U.S. security.

“This final rule will significantly increase CFIUS’s ability to comprehensively review real estate transactions near bases and enable us to deter and stop foreign adversaries from threatening our Armed Forces, including through intelligence gathering,” he said.

CFIUS has jurisdiction over real estate transactions through the Foreign Investment Risk Review Modernization Act of 2018. This allows CFIUS to review foreign real estate deals in the United States that are close to a military installation, other facility, or other government property. CFIUS regulations governing real estate transactions define a subset of military installations for which certain real estate transactions are covered under CFIUS’ jurisdiction.

State lawmakers in Alabama, Florida, Louisiana, Ohio and Texas have discussed options to restrict who can buy near sensitive facilities.

“Today’s final rule is an important milestone in protecting critical U.S. military and defense facilities,” said Deputy Assistant Secretary for Investment Security Paul Rosen. he said. “The expansion of CFIUS jurisdiction around more than 60 military installations in 30 states underscores CFIUS’ work to be nimble and responsive to the evolving nature of the threats we face in the context of foreign investment that raises national security concerns.”

The final rule will go into effect 30 days after its publication in the Federal Register.

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