HR5760-119

What This Bill Does

The PASS Act expands national security review of foreign investment in U.S. agriculture. It amends section 721 of the Defense Production Act so CFIUS coverage includes foreign investments in unaffiliated U.S. businesses engaged in agriculture or agricultural biotechnology and purchases, leases, or concessions of private U.S. real estate used in agriculture. It defines agriculture by reference to the Fair Labor Standards Act and adds the Secretary of Agriculture to CFIUS. Most significantly, if CFIUS determines that a transaction would give a covered foreign person control of or investment in a U.S. agriculture business or private agricultural real estate, the President must prohibit the transaction. Covered foreign persons include people acting for, citizens of, entities organized or principally based in, or subsidiaries of entities from prohibited countries: China, Russia, Iran, and North Korea. The President may waive the prohibition case by case only after determining and reporting to relevant committees at least 30 days in advance that the waiver is vital to U.S. national security.

Who Benefits and How

U.S. farmers benefit from stronger federal review and prohibition of agriculture land or agribusiness transactions tied to prohibited countries. U.S. agricultural biotechnology businesses benefit from CFIUS scrutiny of foreign investments that could create national security risks. Rural communities benefit if agricultural land ownership tied to adversary countries is restricted. The Secretary of Agriculture benefits from a formal CFIUS seat for agriculture-related national security reviews.

Who Bears the Burden and How

Foreign investors from China, Russia, Iran, and North Korea face mandatory prohibition of covered agriculture transactions unless waived. CFIUS review staff must evaluate agriculture, biotechnology, and agricultural real estate transactions under the expanded jurisdiction. Presidential national security staff must handle case-by-case waiver determinations and congressional reports. Agricultural real estate sellers may face blocked or delayed transactions involving covered foreign buyers.

Key Provisions

• Expands covered CFIUS transactions to agriculture and agricultural biotechnology investments.
• Expands coverage to foreign purchase, lease, or concession of private U.S. real estate used in agriculture.
• Adds the Secretary of Agriculture to CFIUS.
• Requires presidential prohibition of covered agriculture transactions involving covered foreign persons from China, Russia, Iran, or North Korea.
• Provides a case-by-case national-security waiver with congressional reporting at least 30 days before waiver.