Military Installation Retail Security Act of 2025
The Military Installation Retail Security Act of 2025 would bar the Department of Defense from renewing, extending, or entering long-term concessions agreements with retailers that are controlled by “covered nations” to operate on covered military installations, unless the Secretary of Defense or the Committee on Foreign Investment in the United States (CFIUS) determines there is no national security risk. The bill requires an expedited review of existing on-base concession contracts within 180 days to determine whether the retailer is controlled by a covered nation; if so, those contracts would be terminated within 30 days unless waived or cleared by CFIUS. It also creates a detailed framework for waivers, CFIUS review, annual ownership-disclosure requirements, and termination authorities for noncompliance or misrepresentation. In short, it gives the federal government new tools to limit or remove on-base retailers with ties to certain nations and to vet potential future arrangements for national security concerns.
Key Points
- 1Prohibition on long-term concessions with retailers controlled by covered nations: The Secretary of Defense may not renew, extend, or enter long-term agreements for on-base retail operations unless either a waiver is granted or CFIUS determines no national security detriment.
- 2Review and possible termination of existing contracts: Within 180 days, the Secretary must review all current long-term concession contracts with covered retailers and terminate those contracts within 30 days if the retailer is found to be controlled by a covered nation, unless a waiver or favorable CFIUS determination is obtained.
- 3Waiver authority and reporting: The Secretary can waive the prohibition if the retailer’s goods/services are vital for service members’ welfare and morale and mitigations are in place; the Secretary must file a report to Armed Services Committees within 30 days after using a waiver.
- 4CFIUS role and process: Covered retailers must notify CFIUS of relations to covered nations; CFIUS will investigate and determine within 180 days whether on-base operation would detrimentally affect U.S. national security; annual disclosures of ownership changes are required for retailers with favorable determinations.
- 5Termination and compliance safeguards: The Secretary can terminate a long-term concession if a retailer fails to comply with CFIUS-related requirements or misrepresents ownership/control to evade the statute.