S.903 - Promoting Agriculture Safeguards and Security Act; PASS Act (119th Congress)
Summary
The PASS Act (S.903) aims to amend the Defense Production Act of 1950. It seeks to enhance the review and prohibition of certain foreign investments in the United States' agricultural sector by the Committee on Foreign Investment in the United States (CFIUS). The bill focuses on transactions involving agricultural land and businesses, particularly those involving covered foreign persons from countries deemed as foreign adversaries.
Expected Effects
The primary effect of this bill would be increased scrutiny and potential prohibition of foreign investments in US agriculture, especially those linked to adversarial nations. This could lead to a shift in investment patterns and potentially impact the availability of capital for agricultural businesses. The bill also mandates increased coordination between the Secretary of Agriculture and CFIUS.
Potential Benefits
- Enhanced national security by preventing foreign adversaries from controlling critical agricultural resources.
- Protection of sensitive US military installations and government facilities near agricultural land.
- Support for domestic farmers and agricultural businesses by limiting foreign competition.
- Increased transparency and oversight of foreign investments in the agricultural sector.
- Mitigation of potential risks to the US food supply chain.
Potential Disadvantages
- Potential reduction in foreign investment in the US agricultural sector, which could limit access to capital and innovation.
- Increased regulatory burden for agricultural businesses, potentially slowing down transactions and investments.
- Possible retaliatory measures from foreign countries, impacting international trade relations.
- Difficulty in defining and enforcing the terms "close proximity" and "sensitive" in relation to military installations.
- Potential for political misuse of the waiver provision, undermining the intended security measures.
Constitutional Alignment
The bill's focus on national security aligns with the Constitution's emphasis on providing for the common defense. Congress's power to regulate commerce with foreign nations, as outlined in Article I, Section 8, supports the bill's provisions regarding foreign investment. The bill also includes a waiver provision, allowing the President flexibility in cases of national interest, which aligns with the executive branch's authority in foreign affairs. However, the delegation of authority to CFIUS and the President must be balanced with due process considerations to ensure fair treatment of foreign investors.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).