S.1388 - Providing Rigorous Oversight Through Evaluation of Concerning Transactions Act of 2025; PROTECT Act of 2025 (119th Congress)
Summary
S.1388, the PROTECT Act of 2025, aims to enhance the review process of foreign investments in the United States by the Committee on Foreign Investment in the United States (CFIUS). Specifically, it expands the definition of 'covered transactions' to include greenfield and brownfield investments by foreign countries of concern. This means that CFIUS would be required to review investments involving the purchase or lease of real estate for establishing factories or facilities by entities controlled by or connected to governments of concern.
Expected Effects
The primary effect of this bill would be to increase scrutiny of foreign investments, particularly those involving real estate and the establishment of new businesses. This could potentially deter investments from countries deemed a national security risk. The bill also mandates the filing of declarations for covered transactions, increasing transparency.
Potential Benefits
- Enhanced national security by preventing potentially harmful foreign control of US businesses and real estate.
- Increased transparency in foreign investment activities.
- Potential for safeguarding critical infrastructure and sensitive technologies.
- May encourage investment from more trusted sources.
- Addresses potential vulnerabilities related to foreign influence.
Most Benefited Areas:
Potential Disadvantages
- Potential chilling effect on foreign investment, which could negatively impact economic growth.
- Increased bureaucratic burden for businesses and investors.
- Possible retaliatory measures from foreign countries.
- May lead to disputes over the definition of 'countries of concern'.
- Could disproportionately affect certain industries or regions.
Constitutional Alignment
The bill appears to align with the constitutional mandate to provide for the common defense (Preamble). Congress has broad authority to regulate commerce with foreign nations (Article I, Section 8, Clause 3). The bill does not appear to infringe on individual liberties or rights protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).