Texas Moves to Ban Land Sales to Chinese and Russian Nationals: National Security vs. Property Rights

A controversial legislative initiative is gaining momentum in Texas that could significantly reshape land ownership rules for foreign nationals. Senate Bill 17 (SB 17), already approved by the Texas House of Representatives, would empower Governor Greg Abbott to prohibit land transactions involving citizens of countries deemed a threat to national security, according to Newsweek.

New Restrictions Target China, Russia, Iran, and North Korea

While the formal justification stems from concerns over Chinese firms purchasing land near military bases, the implications of SB 17 go far beyond that. The bill, authored by Republican Senator Lois Kolkhorst, targets individuals and organizations based in countries assessed as hostile by the U.S. Director of National Intelligence. Currently, the list includes China, Russia, Iran, and North Korea. The bill passed the House with a significant margin—185 votes in favor to 60 against—granting the governor the authority to expand the list at will.

The proposed ban would cover all new land purchases by individuals or entities with ties to the restricted countries. Importantly, the law would not apply to U.S. citizens or green card holders. The bill’s wording focuses on the buyer’s country of residence rather than nationality, a nod to federal civil rights laws.

Although the bill has yet to be signed into law, it has already sparked fierce debates about immigration, property rights, and the limits of state power. Supporters argue it’s a proactive measure to safeguard national security. Republican Representative Nate Schatzline emphasized that it enables quick gubernatorial responses without waiting for annual federal intelligence updates. Representative Cole Hefner added that the bill is about protecting Texas land and resources from hostile influence.

Opposition: Xenophobia and Legal Risks

Critics, however, warn that SB 17 could fuel anti-immigrant sentiment and lead to legal discrimination. Democrat Gene Wu called the bill a “dangerous overreach,” while Eileen Huang of the Texas Multicultural Advocacy Coalition expressed concerns about potential hate crimes and harm to the state’s Asian communities.

Joshua Blank of the Texas Politics Project noted that there is little evidence of real threats from foreign landowners. However, the law would increase the governor's authority, removing accountability from lawmakers in an already sensitive political environment.

Florida as a Precedent
Texas is not the first state to propose such restrictions. A similar law went into effect in Florida on July 1, 2023, banning land purchases near critical infrastructure by citizens from seven countries, including China, Russia, Iran, and North Korea. In Florida, Chinese nationals are also barred from acquiring more than two acres of land, and violators face criminal charges.

Legal and real estate professionals have criticized Florida’s law for potentially violating constitutional protections and diminishing the state’s investment appeal. In 2021–2022, Chinese buyers alone invested $6.1 billion in U.S. property, with Florida topping the list of destinations. The U.S. Department of Justice later declared the Florida law unconstitutional, citing the Fair Housing Act.

What’s Next for Texas?

SB 17 is still under review, but if enacted, it could set a precedent for other states. The bill reflects growing national trends toward restricting foreign property ownership as part of broader immigration and security reforms.

Interestingly, while the Biden administration focuses on border enforcement and deportation policies, former President Donald Trump has proposed launching a “golden visa” program to attract wealthy foreign investors—a stark contrast to SB 17.