WASHINGTON, D.C. — Communities struggling with the economic fallout of closed military bases could gain expanded access to private redevelopment investment under bipartisan legislation introduced by Dave McCormick and Brian Schatz.
What This Means for You
- Former military bases could become eligible for new federal investment incentives.
- States would gain additional flexibility to designate closed base areas as Opportunity Zones.
- Supporters say the proposal could help attract manufacturing, logistics, and energy development projects to struggling communities.
The Increasing Opportunity for Reindustrialization Act would expand eligibility for Qualified Opportunity Zone designation to include former military installations closed through the federal Base Realignment and Closure process, commonly known as BRAC.
Opportunity Zones are federally designated areas where investors can receive tax advantages for making long-term investments in economically distressed communities.
The BRAC process is the federal government’s system for closing or consolidating military installations. Since 1988, multiple rounds of BRAC have resulted in hundreds of military facilities being shuttered or downsized nationwide.
Lawmakers backing the bill argued many former bases continue facing long-term economic challenges years after closure, including lost jobs, shrinking tax bases, and expensive infrastructure redevelopment needs.
“Former military installations have the potential to become engines of economic growth, manufacturing, and job creation,” McCormick said. “This bipartisan legislation will give Pennsylvania communities the tools they need to attract private investment, support reindustrialization, and revitalize properties that have long served our national security interests.”
How the Proposal Would Work
Under current federal law, states face limits on how many census tracts they can nominate for Qualified Opportunity Zone status.
The legislation would create a separate pathway allowing states to nominate BRAC sites for Opportunity Zone designation without counting those areas against existing state caps.
Supporters of the proposal contend former military properties are uniquely positioned for redevelopment because many already contain transportation infrastructure, utility systems, industrial facilities, and large amounts of developable land.
The senators said those characteristics could make former bases attractive for advanced manufacturing, logistics operations, energy production, and other industrial development.
Schatz said the legislation is intended to address the unique redevelopment barriers former military communities often face after closures.
“Former military installations face unique challenges in redevelopment, and our bill will help states attract investment and spur growth in these areas once again,” Schatz said.
Philadelphia Navy Yard Highlighted
Supporters of the legislation pointed to the redevelopment of the Philadelphia Navy Yard as an example of both the opportunities and challenges associated with repurposing former military sites.
Pennsylvania Military Community Enhancement Commission Executive Director Dr. Anette Nance described the proposal as a strategic investment in communities affected by military base closures.
Meanwhile, PIDC President Jodie Harris said former base redevelopment projects often require decades of public investment before attracting large-scale private financing.
Harris noted thousands of jobs disappeared when the Philadelphia Navy Yard closed and argued Opportunity Zone incentives could help finance difficult redevelopment projects that traditional lending markets often avoid.
Next Steps
The legislation would still require approval from Congress before becoming law.
If enacted, states would retain authority to nominate former BRAC sites for Qualified Opportunity Zone designation while gaining additional flexibility beyond current federal Opportunity Zone limits.
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