S. 1388: Providing Rigorous Oversight Through Evaluation of Concerning Transactions Act of 2025

This bill, known as the Providing Rigorous Oversight Through Evaluation of Concerning Transactions Act of 2025 (or PROTECT Act of 2025), aims to enhance the scrutiny over foreign investments in the United States, particularly those from foreign countries deemed "of concern." Here’s a breakdown of its key provisions:

Purpose of the Bill

The primary purpose of the bill is to require additional evaluations of certain types of foreign investments to ensure they do not pose a threat to national security or economic stability. It specifically addresses two types of investments known as greenfield and brownfield investments.

Definition of Investments

• Greenfield Investments: These involve the establishment of new business operations in the U.S., such as building a factory or facility on U.S. land.
• Brownfield Investments: These involve the purchase or lease of existing facilities or operations, with plans to develop or improve them.

Review Process

The bill amends a part of the Defense Production Act that governs the review process for foreign investments. Under the proposed changes:

• The definition of covered transactions will be expanded to include specific types of real estate investments combined with the establishment of a business that may come under foreign governmental control.

Mandatory Declarations

Entities involved in transactions that fall under the new definitions described above will be required to file mandatory declarations. This ensures that all parties provide necessary information regarding their investments and the potential implications tied to national security.

Entities Subject to Oversight

The investments that will attract scrutiny include those:

• Involving the purchase or lease of private or public real estate in the U.S. by a foreign person.
• Where a foreign entity may gain control of a U.S.-based business, either directly or indirectly, through the establishment of operations on that real estate.

Regulations on Foreign Governments

Particular attention is given to whether the foreign investments might facilitate control or influence by a foreign government or entities associated with it, especially those classified under the bill as foreign countries of concern.

Impact on Investments

This legislation represents a significant tightening of regulations surrounding foreign investments in U.S. infrastructure and businesses, with a clear focus on safeguarding national interests.

Relevant Companies

• BA (Boeing): Boeing could see increased scrutiny in its dealings with foreign investors, particularly from nations designated as concerning, affecting its investment strategies and partnerships.
• GS (Goldman Sachs): As a major player in banking and financial services, Goldman Sachs may be impacted as this bill could affect foreign investment transactions they help facilitate.
• AMT (American Tower Corporation): The telecommunications real estate sector, where American Tower operates, may face additional vetting processes for foreign investments involving crucial infrastructure.