The PASS Act (Promoting Agriculture Safeguards and Security Act) would expand the Defense Production Act’s foreign investment framework to explicitly cover agricultural land, agricultural businesses, and related activities in the United States. It authorizes the Committee on Foreign Investment in the United States (CFIUS) to review certain agricultural transactions with foreign involvement and, if appropriate, prohibit them. The bill targets purchases or leverage by “covered foreign persons” of agricultural land near sensitive national security assets or of US agricultural businesses, with a prohibition unless the parties abandon the deal or a national-interest waiver is granted by the President. It defines “agriculture” broadly (per the Fair Labor Standards Act) and creates a pathway for regulatory oversight, including deadlines for review, reporting requirements, and the potential for waivers. Regulations implementing the changes would be due within a year, and the new rules would apply to covered transactions proposed, pending, or completed after the regulatory effective date. The bill is introduced in the Senate by Senators Rounds, Cortez Masto, Lummis, Thune, and Hoeven, with the intention of strengthening national security screening of foreign involvement in U.S. agriculture, including land near sensitive sites and agricultural biotechnology.
Key Points
- 1Expands DPA Section 721 to include agriculture: adds an explicit agriculture-related category to CFIUS review, with the term “agriculture” defined by the Fair Labor Standards Act of 1938.
- 2New review process for reportable agricultural land transactions: CFIUS must determine within 30 days after notification from the Agriculture Secretary whether a land transaction is a “covered transaction,” and then decide whether to request notices/declarations or initiate a formal review.
- 3Prohibitions on certain foreign-involved transactions: if a covered transaction would result in a foreign person acquiring agricultural land or gaining control of a U.S. farm/business, the President must prohibit the transaction unless the parties abandon it; there is a possible national-interest waiver.
- 4Definitions of key terms and scope: defines “covered foreign person,” “covered country” (China, Russia, Iran, North Korea), and uses AFIDA reporting (Agricultural Foreign Investment Disclosure Act) as the basis for identifying reportable land transactions.
- 5Implementation and effective date: requires agency spending plans, directs the President to issue implementing regulations within one year, and provides that the new rules take effect 30 days after regulations exist; they apply to covered transactions proposed, pending, or completed on or after that date.