The Texas Legislature has approved final language for Senate Bill 17, sending the long-debated measure to Gov. Greg Abbott for his signature.
The bill, designed to restrict foreign adversaries from acquiring land in Texas, has undergone significant changes since it was first filed, culminating in a version that its supporters say finally closes key loopholes.
Authored by State Sen. Lois Kolkhorst and carried in the House by State Rep. Cole Hefner, the legislation prohibits governments, companies, and individuals from countries designated as national security threats—currently China, Iran, North Korea, and Russia—from acquiring any interest in real property in the state. That includes residential homes, agricultural land, industrial sites, groundwater, and other critical assets.
“Senate Bill 17 is the strongest, most comprehensive and broad law in the nation that protects us from hostile foreign ownership of our land,” said Hefner while presenting the bill on the House floor. He described it as a careful balance between state authority and constitutional protections.
One of the most controversial components during debate was an amendment offered on the House floor by State Rep. Matt Shaheen that would have allowed foreign nationals from adversarial nations to purchase land as long as they were lawfully present in the United States.
That language was ultimately removed in the final version of the bill approved by the conference committee, a move that was met with approval from the Republican Party of Texas and grassroots activists who had previously withheld support over the loophole.
Another issue that drew sharp criticism was a provision in earlier versions of the bill that would have allowed 99-year lease agreements—arrangements that critics argued would let foreign entities exert long-term control over Texas land without technically owning it.
The final version only allows an exemption for leaseholds lasting less than one year, effectively eliminating the concern that long-term leasing could be used to bypass the law.
Under the final bill, individuals are prohibited from purchasing or acquiring property in Texas if they are citizens of a designated country and are domiciled outside of the United States. The law does not apply to U.S. citizens, lawful permanent residents, or companies owned or controlled entirely by individuals who fall into those categories.
Additionally, the bill authorizes the governor to add countries to the list of designated adversaries, in consultation with the Department of Public Safety and the Homeland Security Council.
Enforcement of the law will fall under the jurisdiction of the attorney general, who is empowered to investigate suspected violations, file legal action to compel divestment, and pursue penalties.
During a final debate in the House, State Rep. Tony Tinderholt praised the revised version, calling it “the most amazing bill of its type in the country” and thanking Hefner and Senate negotiators for their work to strengthen the legislation.
If signed into law as expected, the law would mark one of the most sweeping state-level efforts in the nation to restrict foreign land ownership tied to national security threats.
