The PROTECT Act of 2025 would expand the jurisdiction of the Committee on Foreign Investment in the United States (CFIUS) to review certain foreign real-estate-related investments that are not already clearly covered under current law. Specifically, it adds “greenfield” and “brownfield” investments by foreign persons when the transaction involves the purchase or lease of U.S. real estate and the establishment of a U.S. business to operate a factory or other facility on that property, if the arrangement could result in control by a foreign country of concern or related persons/entities.
The bill also requires mandatory filing of a declaration for these newly covered transactions. In practical terms, parties to such investments would have to notify CFIUS, giving the federal government a formal opportunity to assess national security risks before the transaction proceeds. The bill amends the Defense Production Act of 1950, which is the statutory basis for CFIUS review authority.
Impact
SB 1388 would broaden federal foreign investment screening law by amending Section 721 of the Defense Production Act of 1950 to expressly include certain greenfield and brownfield investments tied to foreign countries of concern. It would make these transactions “covered transactions” subject to CFIUS review and require mandatory declarations, increasing compliance obligations for foreign investors, U.S. counterparties, and businesses involved in real estate development and factory construction. The bill primarily affects foreign direct investment, industrial site development, and national security review procedures rather than creating a new standalone regulatory program.
Sentiment
There is limited recorded debate or voting history in the provided materials, so the overall sentiment can only be inferred from the bill’s sponsorship and framing. The measure appears to have bipartisan support at introduction, with Senators Moreno, Slotkin, and Sheehy listed as sponsors, suggesting a generally favorable view toward tighter scrutiny of foreign investment from countries of concern. The bill’s title and structure indicate a national security-focused approach that is likely to be viewed positively by lawmakers concerned about strategic infrastructure, supply chains, and foreign influence.
Contention
The main point of contention is likely to be the scope of CFIUS authority and the breadth of the new covered-transaction definition. Supporters would emphasize closing perceived loopholes in foreign investment review, especially where foreign-backed projects involve U.S. land and industrial facilities. Critics may argue that the bill could increase regulatory burden, delay investment, and create uncertainty for legitimate development projects, particularly because it reaches greenfield and brownfield investments and includes entities with relatively small ownership interests or informal control arrangements tied to foreign governments of concern.