The renewed focus by the Trump Administration and Congress on
enforcement of the Agricultural Foreign Investment Disclosure Act
of 1978 (AFIDA) marks a significant shift for foreign-owned
developers of energy and infrastructure projects. Since its
enactment, few enforcement penalties were imposed under AFIDA. Now,
with increasing scrutiny on foreign investment in agricultural land
as a national security issue—and amid several recent
Congressional proposals to expand oversight and tighten reporting
requirements—AFIDA has re-emerged as a compliance risk for
energy projects, particularly with increased reliance on foreign
capital in the industry.
This renewed enforcement environment raises several legal,
transactional, and compliance considerations for project sponsors,
investors, and counsel.
