Texas Governor Greg Abbott signed legislation into law Saturday that prohibits individuals and entities from China, Iran, North Korea, and Russia from purchasing land in the state, marking one of the nation’s most restrictive foreign ownership laws.
Senate Bill 17, which takes effect September 1, targets countries designated as national security threats by US intelligence agencies. The law also grants Abbott the authority to add additional nations to the restricted list.
“Texas is not for sale to any nation deemed a threat to our national security,” said State Senator Lois Kolkhorst, the bill’s Republican author, who called it “the strongest national security bill in the nation.”
The measure restricts foreign nationals from the designated countries from acquiring agricultural land, commercial property, and mineral rights. US citizens, legal permanent residents, and individuals legally present in the country who are purchasing a primary residence are exempt.
Abbott had signaled support early, posting on social media in February: “We must get this to my desk this session.”
Flashback: Texas Gov. Greg Abbott To Ban Land Ownership for Entities from ‘Hostile’ Countries
At least 22 other states have enacted similar restrictions since January 2023. However, US Department of Agriculture data show that Chinese investors own approximately 383,000 acres of American farmland — less than 1% of all foreign-held agricultural land — while investors from Russia, Iran, and North Korea collectively hold fewer than 3,000 acres nationwide.
Critics argue the law could lead to racial profiling. The American Civil Liberties Union of Texas called it unconstitutional, saying it “denies people meaningful access to housing and business opportunities.”
A similar law in Florida was recently ruled likely unconstitutional by a federal court, setting up potential legal challenges in Texas. The law applies only to land purchases made on or after its September effective date.
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