U.S. Senator Ted Budd (R-N.C.), joined by Senators Tom Cotton (R-Ark.) and Rick Scott (R-Fla.), has introduced the Military Installation Retail Security Act, a bill aimed at preventing companies owned or controlled by adversarial nations from operating retail businesses on U.S. military bases. The legislation seeks to address concerns about potential national security risks and the safeguarding of sensitive personal data.
The bill targets companies with ties to China, Russia, Iran, and North Korea, prohibiting the Department of Defense (DoD) from authorizing, renewing, or extending long-term retail agreements with these entities. It also mandates a nationwide review of all retail stores on military bases to identify and assess any existing foreign connections.
Congressman Pat Harrigan (R-N.C.-10) introduced the companion legislation in the House of Representatives.
“Our military readiness depends upon security and surveillance. Adversarial nations have no place owning and operating businesses on U.S. military bases, all the while gaining personal identification information of American citizens, just to turn a profit,” stated Senator Budd. “That is why I am proud to introduce the Military Installation Retail Security Act, to close this loophole by taking targeted action to prevent malign actors from embedding themselves within our military communities where they can threaten our national security and exploit personal data.”
Senator Cotton echoed these concerns, emphasizing the need to keep Chinese-affiliated companies away from U.S. military installations. “We shouldn’t be allowing Chinese-affiliated companies in the United States, let alone on our military bases. This bill will ensure our adversaries can’t exploit our military,” he said.
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Senator Scott highlighted the potential risks to national security and the personal data of service members and their families. “Allowing companies controlled by our biggest foreign adversaries – like Communist China, Russia, and North Korea – to operate on U.S. military bases is a completely unacceptable threat to our national security that risks an enemy gaining sensitive personal and military data,” he said.
Congressman Harrigan pointed to the specific case of GNC, a supplement retailer now owned by the Chinese state-owned Harbin Pharmaceutical Group, which operates over 80 stores on U.S. military bases, including multiple locations at Fort Bragg in North Carolina. “My team uncovered that GNC is fully owned by the Chinese Communist Party and operating more than 80 stores on U.S. military bases. That’s not just a problem; it’s a direct threat to our national security,” Harrigan said.
The lawmakers emphasized that retail stores on military bases have prolonged and direct access to service members and their families, creating opportunities for surveillance and data collection. The legislation aims to mitigate these risks by ensuring that foreign adversaries cannot exploit these access points.
The Military Installation Retail Security Act is currently under review by the Senate Armed Services Committee. The full bill text outlines the proposed amendments to title 10, United States Code, detailing the requirements for long-term concessions agreements with retailers controlled by covered nations.
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