King-Hinds urges US Treasury to oversee foreign investments in NMI

U.S. Congresswoman Kimberlyn King-Hinds is asking the U.S. Department of the Treasury to oversee foreign investments in the CNMI to prevent potential national security risks, saying that “our national security decisions must be based on facts, not fear.”

In her letter on Feb. 3, 2025, King-Hinds urged Treasury Secretary Scott Bessent to take further action to safeguard national economic and security interests in the CNMI, saying that “it is imperative that we ensure foreign investments in the CNMI align with U.S. national security priorities.”

She noted that the Treasury Department chairs the Committee on Foreign Investment in the U.S. or CFIUS, which has unique authority to review private foreign investments in the country and determine whether they present threats to U.S. national security.

King-Hinds specifically asked Bessent to expand oversight and review of foreign investments in the CNMI to prevent potential national security risks.

“Ensuring our national security is the responsibility of the federal government, not local businesses or policymakers acting without the necessary authority,” she said. “The federal government already has the tools to investigate and, when necessary, block foreign investments that pose a threat to our security. It is time those tools are applied to the CNMI to ensure that any investment decisions made here align with U.S. national security interests while also allowing legitimate and beneficial investments to proceed without harmful and uninformed speculation,” King-Hinds told Bessent.

She noted that CFIUS can also review real estate transactions near military installations.

However, she said, its scope has not been clearly defined for the CNMI, despite the region’s growing strategic importance. The CNMI is home to key U.S. military assets, including a long-term lease of two-thirds of Tinian for defense purposes and ongoing military infrastructure developments vital to U.S. Indo-Pacific strategy, the congresswoman said.

She informed Bessent that the U.S. government’s long-term lease on Tinian “is anticipated to support expanded training operations and additional installations in the region, including the ongoing construction of a divert airfield for the U.S. Air Force — a project critical to ensuring operational flexibility should Andersen Air Force Base in Guam become unavailable.”

Given these developments, King-Hinds said it is essential that federal agencies take a proactive approach in assessing the security risks associated with foreign investments in the CNMI.

“In recent years, there has been a growing debate over foreign investments in the CNMI, with some calling for local policies that have had a negative impact on our tourism industry,” King-Hinds said.

“Rather than relying on speculation and economically damaging restrictions, we should ensure that CFIUS — the federal body responsible for assessing national security risks — has a process to conduct the necessary reviews. The CNMI does not have access to the intelligence or security expertise to make these determinations, but the federal government does,” she added.

She cited Section 104 of the Covenant, which states: “The United States will have complete responsibility for and authority with respect to matters relating to foreign affairs and defense affecting the Northern Mariana Islands.”

This responsibility, King-Hinds said, “does not fall on local airlines, hotel operators, or our local government.”

In a statement, she said: “If a foreign investment in the CNMI presents a legitimate national security risk, the federal government has the authority and the responsibility to address it. My request to Secretary Bessent is about ensuring that responsibility is upheld. Our national security decisions must be based on facts, not fear.”

She added, “As we continue to push for compliance with Annex VI and resume air service from China, we need to be honest about the distinction between national security concerns on the Chinese government and tourists that are directly benefiting workers and families in our economy. Let’s just focus on bringing jobs, income, and stability back to the CNMI now while we still can. [It's] what’s right and what the people elected us to do.”