H.R. 2551: Military Installation Retail Security Act of 2025

The Military Installation Retail Security Act of 2025 seeks to establish new rules regarding long-term concessions agreements between the Secretary of Defense and certain retailers that operate on U.S. military installations. Here is a breakdown of the key provisions of the bill:

Prohibition on Certain Retailers

The bill prohibits the Secretary of Defense from renewing or entering into long-term agreements with retailers that are controlled by countries classified as "covered nations." This means that if a retailer is owned or significantly influenced by these nations, they cannot have a physical location on U.S. military installations.

Waiver Conditions

The Secretary of Defense can waive this prohibition under specific circumstances. A waiver can be issued if:

• The goods or services provided by the retailer are deemed essential for the welfare of military personnel and no other options are available.
• There are sufficient measures in place to address potential national security risks associated with allowing the retailer to operate.

If a waiver is used, the Secretary must report to Congress within 30 days with justification and details on risk mitigation strategies.

Termination of Agreements

The Secretary of Defense has the authority to terminate agreements with retailers that have misrepresented their ownership structure during the contracting process.

Approval Process for Covered Retailers

Retailers that are classified as "covered retailers" (those potentially controlled by a covered nation) must submit a notice to the Committee on Foreign Investment in the United States (CFIUS) within 30 days of the law's enactment. This notice must outline any connections to covered nations. They cannot operate on military installations until they receive an approval determination from CFIUS.

Investigations and Assessments

Once a notice is submitted, CFIUS will investigate the retailer's connections to covered nations to determine the impact on U.S. national security. CFIUS has 180 days to respond with an approval or disapproval of the notice.

If a covered retailer is approved to operate, they must provide annual disclosures regarding any changes in their ownership that might affect their status as a controlled entity.

Review of Existing Agreements

The Secretary of Defense is required to review all existing concessions agreements with covered retailers within 180 days of the bill's enactment to assess their national security implications. If a retailer is found to be controlled by a covered nation, the Secretary must terminate the agreement.

Definitions

Key terms used in the bill are defined as follows:

• Covered nation: A nation that has been designated under relevant sections of U.S. law.
• Controlled by a covered nation: This includes retailers organized under the laws of a covered nation, having a significant percentage of ownership (20% or more) from a covered nation, or being subject to direct control from a covered nation.
• Covered military installation: Any U.S. military installation as defined by existing law.
• Long-term concessions agreement: A contract allowing a retailer to operate on a military installation.

Compliance and Consequences

Failure to comply with the new requirements will result in immediate termination of agreements with the Secretary of Defense.

Relevant Companies

None found