Newly signed Texas law bans land purchases by nations like Iran, North Korea
Texas has joined the ranks of states enacting legislation to prevent individuals or entities from adversarial nations from acquiring land and property within its borders. Governor Greg Abbott recently signed Senate Bill 17 into law, which prohibits countries identified as security threats in the intelligence community’s 2025 Annual Threat Assessment from purchasing various types of real property in the state. The targeted countries include China, Russia, Iran, and North Korea, with “real property” encompassing agricultural land, commercial or industrial properties, residential properties, and land used for mining or water use.
While the move has been lauded as a necessary step to safeguard against potential security risks posed by foreign acquisitions, it has also sparked controversy. Critics argue that such measures may be overly broad, arbitrary, and even discriminatory. Nonprofit organizations like Asian Americans Advancing Justice have expressed concerns that the legislation could lead to racial profiling and put innocent foreign nationals at risk.
Similar debates have erupted in other states grappling with the issue of foreign land ownership. Arizona Governor Katie Hobbs faced backlash after vetoing a bill aimed at restricting Chinese land purchases in the state, citing vague enforcement criteria and potential loopholes that could undermine the bill’s effectiveness. However, following the criticism, Hobbs introduced her own version of the legislation to address these concerns.
The Texas bill includes exemptions for U.S. citizens, lawful permanent residents, and individuals residing legally in the country who wish to purchase primary residences. Leaseholders with terms of less than a year are also exempt. The state’s attorney general is empowered to investigate violations of the law, with penalties for non-compliance set as felonies. The law is slated to take effect on September 1.
Proponents of such measures point to instances where foreign entities, particularly those from China, have sought to acquire properties near critical U.S. military installations. Concerns have been raised about potential espionage activities and security threats posed by foreign ownership of strategic assets, not just land but also critical infrastructure like solar converters and maritime ports.
The push to curb foreign land ownership extends beyond Texas, with 25 states having already passed similar bills as of the latest count. Efforts are also underway at the federal level, with Congress considering legislation to enhance oversight of foreign farmland purchases and involve the U.S. Department of Agriculture in reporting potential national security risks to the Committee on Foreign Investment in the United States (CFIUS).
As the debate over foreign land ownership continues to unfold, states like New Hampshire and North Carolina are poised to follow Texas’ lead in enacting measures to scrutinize and regulate foreign acquisitions from adversarial nations. The issue remains a complex and evolving one, with policymakers striving to strike a balance between security concerns and potential economic implications.
