Texas has officially enacted a ban on foreign entities or individuals perceived as threats from acquiring land and property. Over the weekend, Governor Greg Abbott introduced Senate Bill 17, which prohibits the purchasing of “real estate” classified as a security risk in the Intelligence Reports Agency’s 2025 annual assessment. This notably includes nations like China, Russia, Iran, and North Korea, and the definition of “real estate” covers agricultural, commercial, industrial properties, residential spaces, and resources like water.
As concerns about global tensions rise, there’s an increasing push to safeguard U.S. assets from foreign acquisition. Still, some critics argue that such measures may be overly broad, potentially leading to arbitrary or discriminatory practices.
In light of Abbott’s move, the nonprofit organization Asian Americans Advancing Justice expressed their outrage, warning that the legislation creates a vast scope that could lead to racial profiling of innocent foreign nationals. In Arizona, Governor Katie Hobbs cited similar claims when she vetoed a bill aimed at preventing the purchase of Chinese-controlled properties. Moreover, she mentioned that the Texas bill lacks a clear plan for implementation, which could result in uneven enforcement. Following backlash, Hobbs called the previous proposal a “weak” bill but has since proposed her own version to address the issue.
The Texas law exempts U.S. citizens and lawful permanent residents, including those looking to purchase a major home after less than a year of renting. It also grants the Texas Attorney General authority to investigate potential breaches of the law, which could potentially lead to felony charges. This legislation is scheduled to take effect on September 1.
Supporters of such initiatives often point to China’s efforts to acquire land near key U.S. military installations. It’s not just about land but valuable assets too; China has a notable presence in the U.S. drone market, with many law enforcement agencies relying on DJI drones. There’s also increasing scrutiny over Chinese espionage and investments in essential U.S. infrastructure.
This Texas legislation comes on the heels of a recent incident involving the arrest of two Chinese nationals for attempting to smuggle dangerous biological materials into the U.S. Advocates for these restrictions argue that while Chinese investments might not directly encroach on sensitive military sites, there’s a concern about espionage. They believe actions like Abbott’s are essential to prevent foreign adversaries from acquiring valuable assets.
On a related note, as of June 23, 2025, 25 states have now enacted laws limiting foreign property ownership, a notable rise from 22 in March. Additionally, 15 related bills are being debated at the federal level. Earlier this week, Congressional Republicans presented a bill aimed at ensuring stricter oversight of foreign farmland purchases in the U.S., mandating the USDA to inform CFIUS about acquisitions that could pose national security risks. States like New Hampshire and North Carolina are also expected to introduce similar laws soon.
