S 1388119th CongressIn Committee

PROTECT Act of 2025

Introduced: Apr 9, 2025

Standard Summary

Comprehensive overview in 1-2 paragraphs

The PROTECT Act of 2025 would expand the screening and oversight of foreign investment into the United States by requiring the Committee on Foreign Investment in the United States (CFIUS) to review greenfield (new development) and brownfield (redevelopment) investments by foreign countries of concern. Specifically, the bill amends the Defense Production Act of 1950 to add greenfield and brownfield real estate investments and the establishment of U.S. operations as covered transactions that could possibly result in control of a U.S. business by a foreign country of concern or entities acting on its behalf. It also requires mandatory declarations for these transactions, intensifying the review process to ensure national security interests are protected. In short, the bill broadens the types of foreign investments that CFIUS would question and potentially block or modify, focusing on real estate purchases or leases linked to U.S. operations and governance arrangements that could enable foreign influence or control.

Key Points

1Expands covered transactions under the Defense Production Act to include greenfield and brownfield investments by foreign countries of concern, specifically involving U.S. real estate and the establishment of a U.S. business to operate a factory or facility on that real estate.
2Defines “control” broadly to include formal or informal arrangements to act in concert, such as government ownership or influence (through a foreign country of concern or entities associated with it), and various governance rights (board appointments, 5 percent or greater interests, or other material influence) held by such actors in related entities.
3Adds new criteria to include investments that could result in control of a U.S. business by a foreign country of concern or related entities, even if control is achieved indirectly or through arrangements to act in concert.
4Requires mandatory declarations for greenfield and brownfield investments by foreign countries of concern that fall under the expanded covered transaction definition.
5Uses the term “foreign countries of concern” as defined in another act (the Research and Development, Competition, and Innovation Act) to determine which countries trigger heightened scrutiny.

Impact Areas

Primary group/area affected- Foreign investors and their counsel, particularly those considering real estate purchases and U.S. manufacturing/operational facilities.- U.S. real estate developers and prospective operators of factories or facilities tied to foreign investment.- U.S. government agencies involved in national security reviews, notably CFIUS.Secondary group/area affected- The U.S. economy and sectors with strategic importance (real estate near sensitive sites, critical manufacturing, and infrastructure).- U.S. policymakers and lawmakers interested in strengthening national security screening of foreign investments.Additional impacts- Increased compliance costs and administrative burden for parties involved in covered transactions due to mandatory declarations.- Potential chilling effect on certain foreign investments from countries of concern, or more cautious deal structures to avoid or satisfy review.- Greater scrutiny may influence how foreign governments and their affiliates engage in real estate and industrial development in the United States.The bill’s short title is the Providing Rigorous Oversight Through Evaluation of Concerning Transactions Act of 2025, or the PROTECT Act of 2025.The procedures rely on and extend the existing framework of CFIUS-like review under the Defense Production Act of 1950, with a specific focus on real estate and new or expanding U.S. operations by foreign actors deemed to be of concern.

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