§4664 — Title 10 Armed Forces | U.S. Code

Summary

The Secretary of Defense cannot sign, renew, or extend long-term contracts that let a retailer controlled by a covered nation run a physical store on a U.S. military base. The Secretary can waive that ban only if the goods or services are essential for troop welfare, there are no reasonable alternatives, and the Secretary puts in place steps to reduce any national security risk. When a waiver is used, the Secretary must tell the House and Senate Armed Services Committees why and explain the risk-reduction steps within 30 days. The rule does not apply if the Committee on Foreign Investment in the United States (CFIUS) has cleared the retailer and finished any action under section 721 of the Defense Production Act of 1950 (50 U.S.C. 4565), or if the retailer is organized and run under U.S. law by U.S. citizens and the items sold on the base are not made in a covered nation. Definitions: “controlled by a covered nation” means being organized under that nation’s laws, having 50 percent or more government ownership or other controlling interest, or being directly controlled by that government. “Covered military installation” means a U.S. military base. “Covered nation” is defined in section 4872. “Long-term concessions agreement” means a contract (including leases or licenses) to run a business on a base. “Retailer” means a person who operates or seeks to operate such a business.

Title 10, §4664

Armed Forces — Source: USLM XML via OLRC

(a)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)(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

(B)the Secretary has implemented adequate measures to mitigate any potential national security risks of the retailer.

(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)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)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.

(2)The term “covered military installation” means a military installation (as defined in section 2801 of this title) located in the United States.

(3)The term “covered nation” has the meaning given in section 4872 of this title.

(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—

(A)the Secretary of Defense or a Secretary of a military department and a person; or

(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;

(B)the Secretary of Defense; or

(C)a Secretary of a military department.

Notes & Related Subsidiaries

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: “(a) Assessment of Established Agreements.—“(1) 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. “(2) Termination of certain concessions agreements.—“(A) 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. “(B) Determinations described.—The determinations described in this subparagraph are, with respect to a long-term concessions agreement—“(i) 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 “(ii) 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. “(3) 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. “(4) 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.”

§4664 Requirements Relating to Long-term Concessions Agreements with Certain Retailers

Summary

Title 10, §4664

Notes & Related Subsidiaries

Statutory Notes and Related Subsidiaries

Citations & Metadata