Plain Language Summary
# PASS Act Summary **What the Bill Does** The Promoting Agriculture Safeguards and Security Act (PASS Act) would prevent foreign individuals and companies from China, Russia, Iran, and North Korea from buying or leasing U.S. agricultural land near military installations or other national security-sensitive locations. It would also block these foreign actors from taking control of U.S. agricultural companies. The bill gives the President authority to allow specific transactions if deemed in the national interest, and would add the Secretary of Agriculture to a committee that reviews foreign investments in the U.S. **Who It Affects** The bill primarily affects foreign investors and entities from the four specified countries, as well as U.S.
agricultural landowners and companies who might otherwise sell to these foreign buyers. Farms and agricultural businesses near military bases would be particularly impacted. **Current Status** The bill is currently in committee in the Senate (S 903, 119th Congress). It was sponsored by Senator Mike Rounds (R-South Dakota). The bill has not yet been voted on or passed.
CRS Official Summary
Promoting Agriculture Safeguards and Security Act or the PASS ActThis bill establishes requirements to address the national security risk to the U.S. agricultural sector.Specifically, the bill prohibits foreign persons (i.e., individuals or entities) who are acting on behalf of China, Russia, Iran, or North Korea from engaging in certain transactions that would result in the person (1) purchasing or leasing U.S. agricultural land near a military installation or another facility or property that is sensitive for national security reasons, or (2) controlling a U.S. agricultural company. The prohibition does not apply if a party to the transaction voluntarily chooses to abandon the transaction. The President may waive this prohibition, on a case-by-case basis, if the waiver is in the national interest. The bill also places the Secretary of Agriculture on the Committee on Foreign Investment in the United States (CFIUS) with respect to transactions (1) related to the purchase of agricultural land or agricultural biotechnology, or (2) otherwise related to the U.S. agricultural industry. The bill also requires CFIUS to review certain transactions involving investments by foreign persons in U.S. agricultural land.The President must direct the issuance of regulations to implement these changes. The regulations must take effect not later than one year after the bill's enactment.Further, the prohibitions and requirements in this bill (1) take effect 30 days after the effective date of the regulations; and (2) apply to any covered transactions that are proposed, pending, or completed on or after the effective date.
Latest Action
Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.