10 U.S.C. § 4664
(a)
Prohibition on Contracting With Certain Retailers.— Except as provided by subsections
(b) and
(c), the
Secretary of Defense may not renew, extend, or enter into a long-term concessions agreement with a retailer that is controlled by a covered nation to permit such retailer to operate or conduct business through a physical location on a covered
military installation.
(b)
Waiver.—
(1)
The
Secretary may waive the requirements of
subsection (a) with respect to a long-term concessions agreement with a retailer if the
Secretary determines
that—
(A)
the goods or services to be provided by the retailer under such long-term concessions agreement are vital for the welfare and morale of members of the
Armed Forces and no reasonable alternatives exist; and
(2)
Not later than 30 days after each use of the waiver authority under
paragraph (1), the
Secretary shall provide to the Committees on Armed Services of the House of Representatives and Senate a justification for such waiver and a description of any risk mitigation strategies described in
paragraph (1)(B).
(c)
Exceptions.— Subsection (a) does not apply with respect to a long-term concessions agreement with a retailer
if—
(1)
such retailer has received a determination from the Committee on Foreign Investment in the
United States (in this section referred to as the “Committee”) that there are no unresolved
national security concerns with respect to the retailer in connection to a matter submitted to the Committee and which the Committee concluded all action pursuant to section 721 of the Defense Production Act of 1950 (
50 U.S.C. 4565); or
(2)
such retailer is organized under the laws of the
United States or any jurisdiction of the
United States and is operated by citizens of the
United States and the products offered for sale by such retailer on the covered
military installation under such long-term concessions agreement are not produced in a covered nation.
(d)
Definitions.— In this section:
(1)
The term “controlled by a covered nation” means, with respect to a retailer—
(A)
that the retailer is organized under the laws of a covered nation or any jurisdiction within a covered nation;
(B)
that the government of a covered nation—
(i)
owns 50 percent or more of the shares of the retailer; or
(ii)
otherwise owns the controlling interest in such retailer; or
(C)
that the retailer is subject to the direct control of the government of a covered nation.
(4)
The term “long-term concessions agreement” means a contract,
subcontract, or other agreement, including a lease agreement or licensing agreement, to operate a business through a physical location on a covered
military installation entered into
by—
(B)
a
person and a nonappropriated fund instrumentality.
(5)
The term “retailer” means a
person that operates or seeks to operate a business providing goods or services on a covered
military installation under a contract,
subcontract, or other agreement, including a lease agreement or licensing agreement,
with—
(A)
a nonappropriated fund instrumentality;
Notes, amendments, and revision history
(Added Pub. L. 119–60, div. A, title VIII, § 841(b), Dec. 18, 2025, 139 Stat. 972.)
Statutory Notes and Related Subsidiaries
Requirements Relating to Long-Term Concessions Agreements With Certain Retailers
Pub. L. 119–60, div. A, title VIII, § 841(a), Dec. 18, 2025, 139 Stat. 971, provided that:Assessment of Established Agreements.— In general.—Not later than 180 days after the date of the enactment of this section [Dec. 18, 2025], the Secretary of Defense shall review each long-term concessions agreement to identify any such agreements with a retailer that is controlled by a covered nation that permit such retailer to operate or conduct business through a physical location on a covered military installation.Termination of certain concessions agreements.— In general.—Not later than 30 days after making the determinations described in subparagraph (B) with respect to a long-term concessions agreement with a retailer, the Secretary of Defense shall terminate such long-term concessions agreement unless the Secretary waives this paragraph with respect to such retailer in accordance with section 4664(b) of title 10, United States Code, as added by this section. Determinations described.—The determinations described in this subparagraph are, with respect to a long-term concessions agreement— a determination that the retailer that is a party to such long-term concessions agreement is controlled by a covered nation based on an assessment required by paragraph (1); and a determination that an exception under section 4664(c) of title 10, United States Code, as added by this section, would not apply with respect to such long-term concessions agreement with such retailer if such retailer entered into such long-term concessions agreement on or after the date of the enactment of this section. Briefing.—Upon completing the review required by paragraph (1), the Secretary of Defense shall provide the Committees on Armed Services of the House of Representatives and Senate a briefing on the findings of such review and a summary of the actions taken to implement the requirements of section 4664 of title 10, United States Code, as added by this section. Controlled by a covered nation; covered military installation; long-term concessions agreement; retailer defined.—The terms ‘controlled by a covered nation’, ‘covered military installation’, ‘long-term concessions agreement’, and ‘retailer’ have the meanings given such terms, respectively, in section 4664 of title 10, United States Code, as added by this section.”