T
exas Governor Greg Abbott signed three bills—House Bill 128, Senate Bill 17 and Senate Bill 1349—on August 26, creating a law that bars real‑estate purchases by citizens, companies, agencies and other entities from China, Russia, Iran and North Korea. The statute, effective September 1, gives the Texas attorney general authority to investigate and prosecute acquisitions that could threaten public health, safety or welfare. Penalties range from fines to criminal charges, and the law explicitly prohibits these foreign parties from owning land or accessing critical infrastructure.
Abbott explained the measure as a straightforward defense against “hostile foreign adversaries” and terrorist groups such as Tren de Aragua, stating that they must not be allowed to own Texas property or exploit the state’s borders. The four targeted nations were identified by the U.S. Director of National Intelligence as posing national‑security risks.
Texas ranks third among U.S. states for international property buyers, accounting for 10 % of all foreign purchases. China leads the list, with buyers spending $13.7 billion on U.S. real estate between April 2024 and March 2025. The new law has sparked debate. Critics argue it infringes on civil rights and institutionalizes discrimination. In May, the ACLU of Texas labeled SB 17 unconstitutional, claiming it promotes racial profiling and fuels anti‑immigrant sentiment.
The legislation follows Florida’s example. In July 2023, Florida Senate Bill 264 barred organizations and “foreign principals” from China, Russia, Iran, North Korea, Cuba, Venezuela and Syria from owning Florida real estate or securing government contracts. The bill faced legal challenges from a coalition led by the Asian American Legal Defense and Education Fund, which contended that it perpetuates stereotypes portraying Asians—particularly Chinese nationals—as state enemies.
These state‑level restrictions reflect a broader trend of limiting foreign ownership of U.S. property, driven by security concerns but raising significant legal and ethical questions about fairness and equal treatment.
