S. 1456: Military Installation Retail Security Act of 2025

This bill, titled the Military Installation Retail Security Act of 2025, seeks to regulate relationships between the U.S. Department of Defense (DoD) and certain retailers operating on military bases. Here’s a summary of its main points:

Prohibition on Long-Term Contracts

The bill prohibits the Secretary of Defense from renewing or entering into long-term agreements with retailers that are controlled by countries considered "covered nations." A covered nation is defined according to existing law and typically includes nations that pose security concerns to the United States.

There are two exceptions to this prohibition:

• If the Secretary grants a waiver.
• If a specific U.S. government committee determines that the retailer's presence does not harm U.S. national security.

Review of Existing Contracts

The Secretary of Defense is required to review current long-term contracts with retailers controlled by covered nations within 180 days of the bill's enactment. This review includes:

• Assessing relationships between the retailer and its parent or subsidiary companies with covered nations.
• Determining if the retailer is indeed controlled by a covered nation.

If it is determined that a retailer is controlled by a covered nation, the Secretary must terminate the contract within 30 days, unless a waiver is granted or the security committee provides a favorable assessment.

Conditions for Waivers

The Secretary may waive the prohibitions if it is concluded that the retailer provides essential goods or services vital to military personnel and that there are no reasonable alternatives available. In such cases, adequate measures must be in place to address any potential security risks.

Additionally, any use of the waiver must be reported to the appropriate congressional committees within 30 days, including reasons for the waiver and any risk mitigations undertaken.

Committee on Foreign Investment in the United States

The bill requires that retailer controlled by covered nations submit a notice detailing their relationships to these nations within 30 days of enactment. This committee will undertake investigations about the potential national security risks posed by these retailers on military installations. They are to provide a determination within 180 days that will shape whether such retailers can continue operations at military sites.

Retailers determined as safe must continue to report any changes in ownership that could affect their classification as controlled by covered nations.

Definitions

The bill includes specific definitions to clarify key terms such as:

• Controlled by a covered nation: Indicates ownership or control criteria by a covered nation over the retailer.
• Covered military installation: Refers to any military base located within the United States.
• Long-term concessions agreement: Encompasses various forms of agreements that allow retailers to operate on military installations.

Termination of Contracts

Contracts must be terminated if a retailer fails to provide required information or misrepresents their ownership in avoiding compliance with the bill.

Implementation Timeline

The legislation sets specific deadlines for reviews and reports to ensure timely compliance with the new regulations.

Relevant Companies

• WMT - Walmart Inc.: This company operates retail locations on military installations and could be affected by restrictions relating to foreign ownership.
• CVS - CVS Health Corporation: As a provider of pharmacy and healthcare services on military bases, this company may face operational impacts due to foreign ownership questions.