Senate Bill 17 aims to prevent certain individuals, businesses, and government bodies from China, Russia, Iran, and North Korea from acquiring property in Texas.
AUSTIN, Texas — A legislative proposal prohibiting land ownership in Texas by individuals from specific countries is now on Governor Greg Abbott’s desk. This follows agreement on amendments to Senate Bill 17 by both the Texas House and Senate.
prohibit citizens from certain nations that are deemed “national security threats” from buying land in Texas.
“We have developed the most robust national security legislation ever crafted by any state,” Kolkhorst declared.
While supporters believe this legislation addresses national security and protects vital resources, critics argue that SB 17 risks creating discrimination against immigrants and communities of color under the pretext of security.
The Senate passed Senate Bill 17 in April, although the version approved by the Texas House differed.
After returning from the House, Sen. Kolkhorst opted not to agree with House amendments and instead initiated a conference committee, where legislators from both chambers deliberated privately to resolve their differences. She noted that House modifications enhanced the bill. The House supported the conference committee report on Thursday, followed closely by the Senate.
Following this, Kolkhorst convened a press conference with Hefner and several other Texas House and Senate members.
“Texas is off-limits to foreign adversaries, and that’s the essence of Senate Bill 17,” Kolkhorst emphasized. “It sends a clear message to our nation and adversaries aiming to harm our state and nation: ‘You will not acquire land or resources in Texas.’
SB 17 would prevent individuals or entities from nations labeled as national security threats from acquiring property in Texas, including governmental bodies and companies directly linked to these nations.
It prohibits “any citizen of a designated country residing outside the United States” or those who “entered the U.S. unlawfully anywhere other than a sanctioned port of entry” from purchasing “real property.”
“Real property” encompasses agricultural land, commercial establishments, mines, quarries, and industrial sites. According to the USDA, roughly 5.7 million acres in Texas are foreign-owned, with China holding about 3.6% of that total.
“We cannot allow oppressive regimes that seek our harm to control our economy, supply chains, daily lives, critical infrastructure, or food supplies,” Rep. Cole Hefner commented.
The ban focuses on countries identified by the Director of National Intelligence. The most recent annual threat assessment names China, Russia, Iran, and North Korea as nations “engaging in competitive behavior threatening U.S. national security.” A “designated country” must appear on “one of the three latest” Annual Threat Assessments.
Individuals and companies from these nations would be barred from obtaining real estate in Texas.
“We’re willing to welcome foreign investment and asset purchases, but land is vital to our security,” remarked State Sen. Juan “Chuy” Hinojosa (D-McAllen). “These are hostile nations. It’s not about targeting a certain population; it’s about addressing governments that threaten our freedoms and democracy.”
Hinojosa described it as a “significant step” toward ensuring Texas’s protection against hostile foreign nations.
“We didn’t include every country—only those identified as threats to our nation. We know who they are,” Hinojosa explained. “It’s not about individuals; it’s about nations that compete with us and disregard our values.”
The governor’s office can add countries or transnational criminal organizations, like the Venezuelan gang Tren de Aragua, to the list.
“The governor is required to consult the public safety director of the Department of Public Safety and the Homeland Security Council to evaluate whether a purchase of real property poses a risk to public national security,” Kolkhorst noted.
The provision allowing Governor Abbott to determine banned countries from purchasing property in the state was added through a House amendment proposed by State Rep. Nate Schatzline (R-Fort Worth).
While proponents assert that this allows for a more rapid response to potential threats, Sarah Cruz, a policy and advocacy strategist for immigrant rights at the American Civil Liberties Union of Texas, cautioned against the risks of a slippery slope.
“The bill grants the governor and attorney general unconstitutional authority to dictate foreign policy and target nations and residents arbitrarily,” Cruz said.
U.S. citizens and lawful permanent residents are exempt. However, any ownership link to a restricted individual or government entity is prohibited.
“If you’re legally present in the U.S., you can purchase a home,” Kolkhorst stated. “However, you’re not allowed to acquire multiple homes, commercial properties, or rights to oil, gas, or water.”
Kolkhorst clarified that those lawfully present or asylum seekers may obtain a homestead of up to ten acres within city limits and 20 acres in rural areas.
There are concerns among some Asian Americans who view the bill as discriminatory and unconstitutional, potentially leading to widespread racial profiling of visa holders, asylees, and refugees.
Cruz warned that it may result in increased scrutiny and unjust denials for those seeking to own or purchase commercial, agricultural, and investment properties.
“S.B. 17 limits individuals’ access to housing and business opportunities,” she stated. “The bill could foster racial profiling against citizens and non-citizens wanting to buy or lease property and may lead sellers to discriminate against potential buyers.”
Cruz argued that the bill infringes upon the First Amendment and the Equal Protection Clause of the 14th Amendment of the U.S. Constitution by prohibiting individuals based solely on nationality or political affiliations. Nevertheless, state lawmakers countered this claim.
“The bill is explicit that it’s not about one’s origin; it’s about actions,” Hefner insisted. “We took care to uphold American values and opportunities for escape from oppressive regimes. Those who suffer under such regimes are their citizens. We wish to preserve a pathway for pursuing the American dream, provided it’s done correctly and with proper vetting.”
Kolkhorst emphasized on Friday that state legislators collaborated with the solicitor general and the Attorney General’s office to draft the bill and ensure its constitutionality.
If Governor Abbott signs the bill into law, it will take effect on September 1 and will only pertain to transactions conducted after that date.
If enacted, the Texas Attorney General’s Office will enforce the law via court actions. Upon evidence of an illegal transaction, a district judge may mandate divestiture from property owners, who could also incur civil penalties or fines amounting to either $250,000 or 50% of the property’s market value, whichever is greater.
“Senate Bill 17 epitomizes Texas’s stance against threats from hostile foreign entities, not foreign individuals,” declared State Sen. Bryan Hughes (R-Mineola). “We welcome all people but will not tolerate hostile foreign governments openly threatening us, and we refuse to let them interfere with Texas.”
During the 88th Legislative Session, Kolkhorst introduced a similar bill, Senate Bill 147. A key distinction was its prohibition against individuals and companies from specific nations buying land. That bill was passed by the Senate but stalled in the House. Nearly two dozen states have implemented similar laws. Kolkhorst told reporters on Friday that the bill now under review by Gov. Abbott, SB 17, is more robust than the legislation previously considered.