I 

118TH CONGRESS 

2D SESSION H. R. 7678 

To amend the Defense Production Act of 1950 to better address certain 

transactions by foreign entities of concern, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 13, 2024 

Ms. SLOTKIN (for herself and Mr. MOORE of Utah) introduced the following 

bill; which was referred to the Committee on Financial Services, and in 

addition to the Committees on Foreign Affairs, Energy and Commerce, 

and Intelligence (Permanent Select), for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions 

as fall within the jurisdiction of the committee concerned 

A BILL 

To amend the Defense Production Act of 1950 to better 

address certain transactions by foreign entities of concern, and for other purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Protecting Against 

5 Foreign Adversary Investments Act of 2024’’. 


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1 SEC. 2. AUTHORITY OF COMMITTEE ON FOREIGN INVEST2 MENT IN THE UNITED STATES TO REVIEW 

3 CERTAIN REAL ESTATE PURCHASES BY FOR4 EIGN ENTITIES OF CONCERN. 

5 (a) IN GENERAL.—Section 721(a)(4) of the Defense 

6 Production Act of 1950 (50 U.S.C. 4565(a)(4)) is amend7 ed— 

8 (1) in subparagraph (A)— 

9 (A) in clause (i), by striking ‘‘; and’’ and 

10 inserting a semicolon; 

11 (B) in clause (ii), by striking the period at 

12 the end and inserting ‘‘; and’’; and 

13 (C) by adding at the end the following new 

14 clause: 

15 ‘‘(iii) any transaction described in 

16 subparagraph (B)(vi) proposed or pending 

17 on or after the date of enactment of this 

18 clause.’’; 

19 (2) in subparagraph (B), by adding at the end 

20 the following new clause: 

21 ‘‘(vi) Subject to subparagraph (C), the 

22 purchase or lease by, or a concession to, a 

23 foreign entity of concern of private or pub24 lic real estate in the United States if— 


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1 ‘‘(I) the value or fair market 

2 value of such purchase, lease, or con3 cession exceeds $1,000,000; 

4 ‘‘(II) the real estate exceeds 100 

5 acres; 

6 ‘‘(III) the aggregate value or fair 

7 market value of such purchase, lease, 

8 or concession, in combination with the 

9 value or fair market value of other 

10 purchases or leases by, or concessions 

11 to, such foreign entity during the 3- 

12 year period preceding the date of such 

13 purchase, lease, or concession, exceeds 

14 $1,000,000; 

15 ‘‘(IV) the aggregate acreage of 

16 such purchase, lease, or concession, in 

17 combination with the aggregate acre18 age of other purchases or leases by, or 

19 concessions to, such foreign entity 

20 during the 3-year period preceding the 

21 date of such purchase, lease, or con22 cession, exceeds 100 acres; or 

23 ‘‘(V) the structure of which is de24 signed or intended to evade or cir25 cumvent the application of this clause, 


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1 as determined by the Committee.’’; 

2 and 

3 (3) in subparagraph (C), by striking ‘‘subpara4 graph (B)(ii)’’ and inserting ‘‘clause (ii) or (iv) of 

5 subparagraph (B)’’. 

6 (b) FOREIGN ENTITIES OF CONCERN.—Section 

7 721(a) of the Defense Production Act of 1950 (50 U.S.C. 

8 4565(a)) is amended— 

9 (1) by redesignating paragraphs (7) through 

10 (13) as paragraphs (8) through (14), respectively; 

11 and 

12 (2) by inserting after paragraph (6) the fol13 lowing new paragraph: 

14 ‘‘(7) FOREIGN ENTITY OF CONCERN.—The 

15 term ‘foreign entity of concern’ has the meaning 

16 given that term in section 9901 of the William M. 

17 (Mac) Thornberry National Defense Authorization 

18 Act for Fiscal Year 2021 (15 U.S.C. 4651).’’. 

19 (c) FACTORS TO BE CONSIDERED.—Section 721(f) 

20 of the Defense Production Act of 1950 (50 U.S.C. 

21 4565(f)) is amended— 

22 (1) by redesignating paragraphs (8) through 

23 (11) as paragraphs (10) through (13), respectively; 

24 and 


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1 (2) by inserting after paragraph (7) the fol2 lowing new paragraphs: 

3 ‘‘(8) the potential effects of a proposed or pend4 ing transaction on the national security of the 

5 United States, as a result of the effect of such trans6 action on the economic security of the United States; 

7 ‘‘(9) the factors described under section 3 of 

8 Executive Order 14083 (50 U.S.C. 4565 note, relat9 ing to consideration of evolving national security 

10 risks by the Committee on Foreign Investment in 

11 the United States), as in effect on January 1, 

12 2024;’’. 

13 (d) MANDATORY DECLARATIONS.—Section 

14 721(b)(1)(C)(v)(IV) of the Defense Production Act of 

15 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)) is amended by 

16 adding at the end the following: 

17 ‘‘(hh) REQUIRED DECLARATIONS FOR CERTAIN

18 REAL ESTATE TRANSACTIONS.—Notwithstanding item 

19 (dd), the parties to a real estate transaction described in 

20 clause (vi) of subsection (a)(4)(B) shall submit a declara21 tion described in subclause (I) with respect to the trans22 action.’’. 

23 (e) REPORTS REQUIRED.— 

24 (1) RETROACTIVE APPLICABILITY.—Not later 

25 than 180 days after the date of the enactment of 


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1 this Act, the Secretary of the Treasury, in coordina2 tion with Secretary of State and the Secretary of 

3 Homeland Security, shall submit to Congress a re4 port that includes an assessment of the feasibility of 

5 requiring retroactive mitigation measures or divest6 ment of real estate described in section 

7 721(a)(4)(B)(iv) of the Defense Production Act of 

8 1950, as added by this section, that is owned by a 

9 foreign entity of concern (as defined in section 

10 721(a) of such Act, as amended by this section) that 

11 presents a threat to national security (as determined 

12 by the Committee on Foreign Investment in the 

13 United States (established under such section 721)). 

14 (2) ADDITIONAL RESOURCES.—Not later than 

15 180 after the date of the enactment of this Act, the 

16 Secretary of the Treasury and the Committee on 

17 Foreign Investment in the United States shall sub18 mit to Congress a report describing any statutory or 

19 regulatory changes necessary to carry out this sec20 tion and the amendments made by this section. 

21 (f) EFFECTIVE DATE.—The amendments made by 

22 this section shall take effect on the date of the enactment 

23 of this Act and apply with respect to any covered trans24 action the review or investigation of which is initiated 


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1 under section 721 of the Defense Production Act of 1950 

2 on or after such date of enactment. 

3 SEC. 3. REPORT ON PUBLIC OR PRIVATE REAL ESTATE 

4 PURCHASING ACTIVITIES IN THE UNITED 

5 STATES BY FOREIGN ENTITIES OF CONCERN. 

6 (a) REPORTS.— 

7 (1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this Act, and annually 

9 thereafter, the Director, in coordination with the 

10 Secretary of Homeland Security and the head of any 

11 other appropriate Federal agency, shall submit to 

12 the appropriate congressional committees a report 

13 containing a description of the national security 

14 risks of the purchase, ownership, or lease of public 

15 or private real estate by a foreign entity of concern. 

16 (2) CONTENTS.—Each report submitted under 

17 paragraph (1) shall include, with respect to the year 

18 covered by the report, the following: 

19 (A) A list of all real estate in the United 

20 States described in clause (vi) of section 

21 721(a)(4)(B) of the Defense Production Act of 

22 1950, as added by this Act. 

23 (B) An analysis of the potential use of real 

24 estate for industrial espionage or intellectual 

25 property transfer by a foreign entity of concern. 


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1 (C) An analysis of the potential use by a 

2 foreign entity of concern of real estate in close 

3 proximity to manufacturing facilities, water 

4 sources, and other critical infrastructure to 

5 monitor, interrupt, or disrupt activities critical 

6 to the national and economic security of the 

7 United States. 

8 (D) An analysis of other threats to the 

9 economic security or national security of the 

10 United States due to the ownership, including 

11 ownership in the aggregate, of real estate by a 

12 foreign entity of concern. 

13 (3) UNCLASSIFIED FORM.—Each report sub14 mitted under this subsection shall— 

15 (A) be submitted in unclassified form, but 

16 may include a classified annex; and 

17 (B) be consistent with the protection of in18 telligence sources and methods. 

19 (4) PUBLICLY AVAILABLE.—Upon submitting a 

20 report under paragraph (1), the Director shall make 

21 publicly available the information included in such 

22 report under paragraph (2)(A). 

23 (b) DEFINITIONS.—In this section: 


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1 (1) APPROPRIATE CONGRESSIONAL COMMIT2 TEES.—The term ‘‘appropriate congressional com3 mittees’’ means— 

4 (A) the Committee on Energy and Com5 merce of the House of Representatives, the 

6 Committee on Homeland Security of the House 

7 of Representatives, and the Permanent Select 

8 Committee on Intelligence of the House of Rep9 resentatives; and 

10 (B) the Committee on Environment and 

11 Public Works, the Committee on Homeland Se12 curity and Governmental Affairs of the Senate, 

13 and the Select Committee on Intelligence of the 

14 Senate. 

15 (2) FOREIGN ENTITY OF CONCERN.—The term 

16 ‘‘foreign entity of concern’’ has the meaning given 

17 that term in section 9901 of the William M. (Mac) 

18 Thornberry National Defense Authorization Act for 

19 Fiscal Year 2021 (15 U.S.C. 4651). 

20 (3) DIRECTOR.—The term ‘‘Director’’ means 

21 the Director of National Intelligence. 

22 (4) STATE.—The term ‘‘State’’ has the mean23 ing given such term in section 101 of the Com24 prehensive Environmental Response, Compensation, 

25 and Liability Act of 1980 (42 U.S.C. 9601). 


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1 SEC. 4. BEST PRACTICES FOR STATE AND LOCAL OFFI2 CIALS RELATING TO POTENTIAL TRANS3 ACTIONS WITH FOREIGN ENTITIES OF CON4 CERN. 

5 (a) IN GENERAL.—Not later than 180 days after the 

6 date of the enactment of this Act, the Director of National 

7 Intelligence, in coordination with the Secretary of Home8 land Security, the Secretary of Commerce, and the heads 

9 of any other Federal department or agencies determined 

10 relevant by the Director of National Intelligence, shall de11 velop and make publicly available best practices for use 

12 by State and local officials with respect to engaging in 

13 a potential transaction with a foreign entity of concern. 

14 Such best practices shall including an identification of— 

15 (1) common risks associated with engaging a 

16 foreign entity of concern with respect to such a po17 tential transaction; and 

18 (2) Federal resources available to assist such 

19 officials in determining the specific national security 

20 risks, if any, of such a potential transaction. 

21 (b) FOREIGN ENTITY OF CONCERN DEFINED.—In 

22 this section, the term ‘‘foreign entity of concern’’ has the 

23 meaning given that term in section 9901 of the William 

24 M. (Mac) Thornberry National Defense Authorization Act 

25 for Fiscal Year 2021 (15 U.S.C. 4651). 

Æ 


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