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HR 2551119th CongressIn Committee

Military Installation Retail Security Act of 2025

Introduced: Apr 1, 2025
Standard Summary
Comprehensive overview in 1-2 paragraphs

This bill, titled the Military Installation Retail Security Act of 2025, would tighten federal controls over long-term concessions agreements on U.S. military installations by retailers that are controlled by a “covered nation.” Introduced by Representative Harrigan on April 1, 2025, the measure adds a new section (Sec. 4664) to Title 10 of the U.S. Code. It generally bans renewing, extending, or entering long-term concessions with retailers tied to covered nations to operate on covered military installations, unless approved after a national security review. It creates a formal process for waivers, reporting, and potential termination for misrepresentation or noncompliance, and it requires an initial assessment of current concession agreements within six months of enactment. In short, the bill seeks to prevent foreign-controlled retailers from operating on U.S. military bases unless a national-security review approves the arrangement, with ongoing reporting and potential termination if ownership or control changes or if the retailer is found to be controlled by a covered nation. It also gives the Department of Defense and the Committee on Foreign Investment in the United States (CFIUS) a more explicit role in evaluating and monitoring these concession relationships.

Key Points

  • 1Prohibition on long-term concessions with covered-nation-controlled retailers on covered military installations, with a potential narrow waiver for vital goods/services and risk mitigation.
  • 2Waiver mechanism: Secretary of Defense can waive the prohibition if essential goods/services exist with no good alternatives and appropriate risk-mitigation measures are in place; requires a 30-day post-waiver report to the House and Senate Armed Services Committees.
  • 3CFIUS-style review of covered retailers: retailers must notify CFIUS within 30 days of enactment about any direct/indirect ties to a covered nation; CFIUS conducts a national-security investigation and must issue a determination within 180 days.
  • 4Compliance and disclosure: retailers that receive approval must annually disclose changes in ownership structure; the Secretary of Defense must terminate a concession if the retailer fails to comply.
  • 5Initial and ongoing assessments: within 180 days of enactment, DoD must review existing long-term concessions with covered retailers to identify any foreign ownership/control; termination must occur within 30 days after finding a retailer is controlled by a covered nation.
  • 6Definitions and scope: clear definitions for “covered nation,” “covered retailer,” “long-term concessions,” “retailer,” and “covered military installation,” and limits the rules to agreements entered into after enactment (with respect to the prohibition).

Impact Areas

Primary group/area affected:- Department of Defense and the management of long-term concessions on U.S. military installations, including nonappropriated fund instrumentality (NAFI) retailers and other concessionaires.- Service members and their families who use on-base retail services, with potential changes in on-base shopping options and pricing if concessions are altered or replaced.Secondary group/area affected:- Retailers currently operating on U.S. military bases under long-term concessions, especially those with ties to covered nations; foreign investors and parent/subsidiary structures of those retailers; and U.S. policymakers overseeing national security and foreign investment (CFIUS and the DoD).Additional impacts:- Increased national-security scrutiny of on-base retailers and potential disruption to existing concession agreements if ownership or control is found to be tied to a covered nation.- Administrative and legal workload for DoD and CFIUS, including investigations, determinations, annual disclosures, and compliance monitoring.- Possible broader effects on vendor diversity, base morale-related services, and supply chains for on-base goods and services if certain retailers are disqualified or replaced.
Generated by gpt-5-nano on Nov 19, 2025