- The Texas House passed Senate Bill 17, which would restrict property sales to citizens and entities from China, Iran, North Korea, and Russia.
- The bill empowers the governor to expand the list of prohibited countries and allows the state to seize land owned by targeted foreign entities.
- Critics say the legislation risks inciting discrimination, particularly against Asian Americans, and echoes a similar Florida law currently facing legal challenges.
Texas lawmakers moved closer to banning foreign ownership of property by individuals and entities linked to several foreign governments. On Thursday, the Texas House approved Senate Bill 17, which targets buyers from China, Iran, North Korea, and Russia. The bill now returns to the Senate after House amendments, per Bisnow.
National Security or Xenophobia?
Rep. Cole Hefner, who sponsored the bill, said it protects Texas’ economic and strategic assets. “We must not allow oppressive regimes… to seize control and dictate their terms over our economy,” he stated. The vote passed 85-60, mostly along party lines.
However, critics, including Rep. Gene Wu, voiced strong concerns. Wu warned that the bill could fuel racial profiling and discrimination. “When the attacks come, when the hate crimes start, it will be against all Asians,” he said. He also noted that many people do not distinguish between different Asian nationalities.
Bill Specifics
If Gov. Greg Abbott signs the bill into law, the restrictions on foreign ownership would take effect on September 1. From that date forward, citizens and entities from the named countries would no longer be allowed to buy property in Texas.
Additionally, the bill gives the Texas Attorney General authority to investigate property owned by restricted parties. If a court agrees, the state can seize the land and sell it. The proceeds would then return to the former owner.
Lawmakers chose the four countries based on a 2025 threat report from the US Director of National Intelligence. Notably, a similar bill failed in 2023 after being narrowed to only ban farmland sales.
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Broader Implications
This legislation is part of a broader movement. Several states have recently introduced or passed laws restricting foreign land ownership. Florida enacted a similar law in 2023, but a federal appeals court temporarily blocked it.
Because of this, legal experts are watching Texas closely. The bill could face similar constitutional challenges in the near future.
What’s Next
The Senate must now decide whether to accept the House amendments. If it does, the bill will head to Governor Abbott for final approval. If he signs it, Texas will join other states taking a hard line on foreign real estate ownership.
Why it Matters
Supporters say the bill defends Texas from hostile foreign influence. However, opponents warn that it may encourage xenophobia and racial profiling. With its potential legal and civil rights implications, this bill could significantly impact both Texas policy and national debate.
