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A new Texas law takes effect on Sept. 1 that will ban certain people and countries from buying land in the Lone Star State.
The Texas Legislature has passed Senate Bill 17, a sweeping new law that prohibits the sale of land and other property in the state to individuals and companies from China, Iran, North Korea, Russia, and any other country designated by the governor. The measure also restricts some people from leasing homes or apartments for longer than a year.
Gov. Greg Abbott celebrated the bill’s passage, saying the intent is to safeguard Texas from foreign influence.
“It is very simple. Hostile foreign adversaries like China, Russia, Iran, and North Korea, as well as foreign terrorist organizations like Tren de Aragua, must not be allowed to own land in Texas,” Abbott, a Republican, said in a press release.
“They should not be allowed access to our critical infrastructure, and they may not be allowed to exploit our border. Stiff, criminal penalties will be inflicted on those who violate these laws.”
Texas has become the nation’s top homebuilding state, accounting for 15% of all new-housing permits in 2023, far above its share of the U.S. population. Builders are constructing not only more homes, but also smaller and more affordable ones, with the median square footage down 5.3% since 2020 and a growing share priced below $350,000.
The state’s housing market has been shaped by a massive population boom, fueled by both international migration and a surge of Californians seeking cheaper housing, jobs, and relief from climate risks.
While affordability has improved, a Realtor.com® report finds that much of Texas’ for-sale inventory is still out of reach for low- and middle-income households, underscoring the need for more entry-level housing.
“As passed, SB 17 is the most comprehensive prohibition on adversarial control of land and natural resources in the U.S. This legislation will ensure that hostile nations do not control Texas’ most precious assets. This is a matter of national security. Texas must act now to protect our land, food sources, water, and natural resources,” said state Sen. Lois Kolkhorst, as reported by KERA News.
Kolkhorst, a Republican, also emphasized the legal framework of the law, saying during a March 19 debate that the bill was designed to withstand constitutional scrutiny.
“This legislation is different, better, and more constitutionally sound and predicated on national security issues. In the interim, I asked my staff to work with the best legal minds to craft a constitutionally sound but strict bill to protect Texas,” she added.
The effort was prompted in part by public outcry over a Chinese company with a connection to the Chinese Communist Party purchasing 140,000 acres near Laughlin Air Force Base in Val Verde County, according to a press release from Kolkhorst’s office.
“It is common sense and good state policy to prohibit our foreign adversaries from purchasing Texas land,” said Lt. Gov. Dan Patrick, a Republican, after the bill was passed. “Preventing private property from being sold to entities from adversarial nations is a basic tenet of national security. Many Texans have been increasingly concerned by this growing practice over the last few years.”
SB17 receives pushback
The law has not gone unchallenged. In July, the Chinese American Legal Defense Alliance, a nonprofit organization, filed a lawsuit on behalf of three visa holders from China, arguing that the law was unconstitutional, according to BBC News. The case was later dismissed, with a judge siding with the state attorney general, who argued that the plaintiffs, as student-visa and work-visa holders, would not be directly affected by the law.
Chinese nationals are the largest group affected. As of 2023, at least 120,000 people born in mainland China were living in Texas.
Jason Yuan, a community activist who works at a car shop, helped organize rallies outside the state capitol and testified at a public hearing. He argued that the bill should be renamed “The Chinese Exclusion Act of 2025.”
Civil rights groups have also raised alarms. In May, the ACLU of Texas issued a statement warning that SB17 would undercut equal protection rights.
“S.B. 17 denies people meaningful access to housing and business opportunities,” said Sarah Cruz, policy and advocacy strategist for immigrants’ rights. “The bill would promote racial profiling against citizens and non-citizens wanting to purchase or lease property, as well as cause sellers to discriminate against potential buyers.
“Instead of fanning the flames of anti-immigrant hate, Texas politicians should focus on funding our public schools and increasing access to health care,” she added.
Texas is not alone in pursuing restrictions on foreign ownership. Since 2021, 26 states—most of them Republican—have passed 50 bills targeting foreign property ownership, with many aimed at China. A significant wave of these laws arrived in 2023, the same year a Chinese surveillance balloon traveled across North American airspace, straining U.S.-China relations.
With SB17 now signed into law, Texas has joined a broader movement that ties land ownership to national security concerns.