PASS Act

The "Promoting Agriculture Safeguards and Security Act," or "PASS Act," aims to amend the Defense Production Act of 1950 to enhance national security oversight of foreign investment in the U.S. agriculture sector. It specifically expands the authority of the Committee on Foreign Investment in the United States (CFIUS) to review and, in certain cases, prohibit transactions involving agricultural land and businesses. The bill defines "agriculture" consistent with the Fair Labor Standards Act of 1938, establishing a clear scope for its provisions. A key provision requires CFIUS to review "reportable agricultural land transactions" within 30 days of notification from the Secretary of Agriculture. These transactions involve foreign persons acquiring interests in agricultural land that must be reported under existing law. Furthermore, the bill adds the Secretary of Agriculture as a member of CFIUS for any covered transaction related to agricultural land, agricultural biotechnology, or the broader agriculture industry in the United States, ensuring specialized expertise in these reviews. Crucially, the Act mandates the President to prohibit transactions where a "covered foreign person" acquires agricultural land in close proximity to sensitive U.S. military installations or other government facilities, or gains control of a U.S. business engaged in agriculture. A "covered foreign person" is defined as a foreign entity acting at the direction or control of a government from a "covered country," specifically listing China Russia Iran North Korea as foreign adversaries. The President retains the ability to waive this prohibition on a case-by-case basis if it is determined to be in the national interest, with a report to Congress. The bill also directs the President to issue implementing regulations within one year, with the amendments taking effect 30 days after these regulations are finalized.