PASS Act of 2025
The Promoting Agriculture Safeguards and Security Act of 2025 (PASS Act) would expand U.S. foreign investment review powers by adding the Secretary of Agriculture to the Committee on Foreign Investment in the United States (CFIUS) and by broadening the range of agriculture-related transactions subject to review under the Defense Production Act of 1950. The bill prohibits certain foreign-influenced transactions in U.S. agriculture and agricultural real estate and creates a framework for case-by-case presidential waivers. It also requires the Secretary of Agriculture to produce regular reports to Congress on the national security risks posed by foreign purchases of U.S. agricultural businesses. The act defines agricultural activity consistently with the Fair Labor Standards Act (FLSA) and targets specified foreign states as “prohibited countries.” In short, the bill would tighten national-security screening of foreign involvement in U.S. agriculture, give more formal oversight to the agriculture secretary within CFIUS, and establish ongoing reporting and potential prohibition authority for transactions involving U.S. agricultural businesses and related real estate.
Key Points
- 1Expansion of CFIUS membership: The Secretary of Agriculture would be added to the Committee on Foreign Investment in the United States, integrating agricultural expertise into national security reviews of foreign investments.
- 2Expanded review scope for agricultural transactions: The act broadens CFIUS review to include:
- 3- Foreign investments in unaffiliated U.S. businesses engaged in agriculture or agriculture-related biotechnology.
- 4- Purchases, leases, or concessions involving private U.S. real estate used in agriculture.
- 5- Other specified foreign investments in agriculture and related sectors.
- 6New prohibition authority with a waiver option: If a review determines a transaction would give a foreign party control or significant investment in U.S. agriculture or agricultural real estate that jeopardizes national security, the President must prohibit it. The President can waive this prohibition on a case-by-case basis after determining it is vital to national security, with a minimum 30-day decision window.
- 7Definitions and scope: The act defines “agriculture” by reference to the meaning in section 3 of the Fair Labor Standards Act (FLSA) and establishes criteria for “covered foreign person” and “prohibited country” (China, Russia, Iran, North Korea). This sets the framework for who is subject to review and which foreign actors are targeted.
- 8Regular reporting to Congress: The Secretary of Agriculture would issue a report to the House Committee on Agriculture and the Senate Committee on Agriculture, Nutrition, and Forestry every 180 days (with an initial report within 180 days of enactment) assessing the risks posed by foreign purchases of U.S. agricultural businesses.