Military Installation Retail Security Act of 2025

This bill prohibits the Secretary of Defense from entering into, renewing, or extending long-term concessions agreements with retailers controlled by covered nations to operate on U.S. military installations, unless a waiver is granted or the Committee on Foreign Investment in the United States (CFIUS) determines no detrimental national security effect. It also requires review and potential termination of existing agreements with such retailers.

Sec. 2, Prohibition on long-term concessions agreements with retailers controlled by covered nations: The Secretary of Defense cannot renew, extend, or enter into a long-term concessions agreement with a retailer controlled by a covered nation for a physical location on a covered military installation, unless the Secretary waives the prohibition or CFIUS determines no detrimental national security effect. Within 180 days of enactment, the Secretary must review existing agreements with covered retailers to assess relationships with covered nations and determine control. If a covered retailer is controlled by a covered nation, the Secretary must terminate the agreement within 30 days, unless a waiver is granted or CFIUS makes a favorable determination. The Secretary may waive the prohibition or termination requirement if the retailer's goods or services are vital for military welfare and morale with no reasonable alternatives, and adequate risk mitigation measures are implemented. A report to Congress is required within 30 days of each waiver. Covered retailers must submit a notice to CFIUS within 30 days of enactment describing relationships with covered nations. CFIUS must investigate each covered retailer and submit a determination on national security effects within 180 days. Retailers receiving a favorable determination must annually disclose ownership changes. The Secretary must terminate an agreement if the retailer fails to comply with CFIUS requirements or misrepresents ownership to evade the prohibition. Definitions: 'controlled by a covered nation' includes being organized under a covered nation's laws, 20% or more equity owned by a covered nation, or subject to its direction. 'Covered military installation' means a U.S. military installation. 'Covered nation' is defined in section 4872 of title 10. 'Covered retailer' means a retailer performing a long-term concessions agreement on or before enactment. 'Long-term concessions agreement' includes contracts, subcontracts, leases, or licensing agreements to operate a business on a covered military installation. 'Nonappropriated fund instrumentality' is defined in section 2488. 'Retailer' includes nonappropriated fund instrumentalities and other persons operating under agreements with such instrumentalities or the Secretary of Defense.