II 

118TH CONGRESS 

2D SESSION S. 3948 

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

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

IN THE SENATE OF THE UNITED STATES 

MARCH 14, 2024 

Ms. STABENOW (for herself and Mr. PETERS) introduced the following bill; 

which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs 

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 the enactment of 

18 this 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 such pur24 chase, lease, or concession is designed 

25 or intended to evade or circumvent 


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1 the application of this clause, as de2 termined by the Committee.’’; and 

3 (3) in subparagraph (C)(i), by striking ‘‘sub4 paragraph (B)(ii)’’ and inserting ‘‘clause (ii) or (iv) 

5 of subparagraph (B)’’. 

6 (b) DEFINITION OF FOREIGN ENTITIES OF CON7 CERN.—Section 721(a) of the Defense Production Act of 

8 1950 (50 U.S.C. 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 impact of the trans6 action on the economic security of the United States; 

7 ‘‘(9) the factors described in section 3 of Exec8 utive Order 14083 (50 U.S.C. 4565 note; relating to 

9 consideration of evolving national security risks by 

10 the Committee on Foreign Investment in the United 

11 States), as in effect on January 1, 2024;’’. 

12 (d) MANDATORY DECLARATIONS.—Section 

13 721(b)(1)(C)(v)(IV) of the Defense Production Act of 

14 1950 (50 U.S.C. 4565(b)(1)(C)(v)(IV)) is amended by 

15 adding at the end the following: 

16 ‘‘(hh) REQUIRED DECLARA17 TIONS FOR CERTAIN REAL ES18 TATE TRANSACTIONS.—Notwith19 standing item (dd), the parties to 

20 a real estate transaction de21 scribed in subsection 

22 (a)(4)(B)(vi) shall submit a dec23 laration described in subclause 

24 (I) with respect to the trans25 action.’’. 


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1 (e) REPORTS REQUIRED.— 

2 (1) RETROACTIVE APPLICABILITY.—Not later 

3 than 180 days after the date of the enactment of 

4 this Act, the Secretary of the Treasury, in coordina5 tion with Secretary of State and the Secretary of 

6 Homeland Security, shall submit to Congress a re7 port that includes an assessment of the feasibility of 

8 requiring retroactive mitigation measures or divest9 ment of real estate described in clause (vi) of section 

10 721(a)(4)(B) of the Defense Production Act of 

11 1950, as added by this section, that is owned by a 

12 foreign entity of concern (as defined in paragraph 

13 (7) of section 721(a) of such Act, as amended by 

14 this section) that presents a threat to national secu15 rity (as determined by the Committee on Foreign In16 vestment in the United States). 

17 (2) ADDITIONAL RESOURCES.—Not later than 

18 180 after the date of the enactment of this Act, the 

19 Secretary of the Treasury and the Committee on 

20 Foreign Investment in the United States shall sub21 mit to Congress a report describing any statutory or 

22 regulatory changes necessary to carry out this sec23 tion and the amendments made by this section. 

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

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


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1 of this Act and apply with respect to any covered trans2 action the review or investigation of which is initiated 

3 under section 721 of the Defense Production Act of 1950 

4 on or after such date of enactment. 

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

6 PURCHASING ACTIVITIES IN THE UNITED 

7 STATES BY FOREIGN ENTITIES OF CONCERN. 

8 (a) REPORTS.— 

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

10 after the date of the enactment of this Act, and an11 nually thereafter, the Director, in coordination with 

12 the Secretary of Homeland Security and the head of 

13 any other appropriate Federal agency, shall submit 

14 to the appropriate congressional committees a report 

15 containing a description of the national security 

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

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

18 (2) CONTENTS.—Each report submitted under 

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

20 covered by the report, the following: 

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

22 States described in clause (vi) of section 

23 721(a)(4)(B) of the Defense Production Act of 

24 1950, as added by this Act. 


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

2 estate for industrial espionage or intellectual 

3 property transfer by a foreign entity of concern. 

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

5 foreign entity of concern of real estate in close 

6 proximity to manufacturing facilities, water 

7 sources, and other critical infrastructure to 

8 monitor, interrupt, or disrupt activities critical 

9 to the national and economic security of the 

10 United States. 

11 (D) An analysis of other threats to the 

12 economic security or national security of the 

13 United States due to the ownership, including 

14 ownership in the aggregate, of real estate by a 

15 foreign entity of concern. 

16 (3) UNCLASSIFIED FORM.—Each report sub17 mitted under this subsection shall— 

18 (A) be submitted in unclassified form, but 

19 may include a classified annex; and 

20 (B) be consistent with the protection of in21 telligence sources and methods. 

22 (4) PUBLICLY AVAILABLE.—Upon submitting a 

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

24 publicly available the information included in such 

25 report under paragraph (2)(A). 


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1 (b) DEFINITIONS.—In this section: 

2 (1) APPROPRIATE CONGRESSIONAL COMMIT3 TEES.—The term ‘‘appropriate congressional com4 mittees’’ means— 

5 (A) the Committee on Energy and Com6 merce, the Committee on Homeland Security, 

7 and the Permanent Select Committee on Intel8 ligence of the House of Representatives; and 

9 (B) the Committee on Environment and 

10 Public Works, the Committee on Homeland Se11 curity and Governmental Affairs, and the Select 

12 Committee on Intelligence of the Senate. 

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

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

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

16 Thornberry National Defense Authorization Act for 

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

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

19 the Director of National Intelligence. 

20 (4) STATE.—The term ‘‘State’’ has the mean21 ing given such term in section 101 of the Com22 prehensive Environmental Response, Compensation, 

23 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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