Texas bans Chinese citizens from owning property

Texas Gov. Greg Abbott has signed Senate Bill 17 into law, preventing citizens from China, Russia, Iran and North Korea from buying and owning property in the state.

About the bill: The law, authored by Sen. Lois Kolkhorst (R-Brenham) — and part of over 300 bills Abbott approved on Saturday — blocks individuals, companies and government entities from the aforementioned countries from buying Texas real estate, effective Sept. 1. The law excludes U.S. citizens and legal permanent residents, while permitting those with valid U.S. visas to buy only homes for personal use, not investment properties. Those who break the law could face felony charges, while courts may assign receivers to oversee and sell properties obtained illegally. The Texas Attorney General will examine possible violations and seek civil fines up to $250,000 or 50% of property value, whichever is larger.

Discrimination concerns: Opponents of the legislation, including several Asian American advocates, have called it discriminatory. Rep. Gene Wu (D-Houston) said last month, “This is a loud and clear message that Asians don’t belong in this country.” Asian Texans for Justice co-founder Alice Yi, who slammed the bill as “racist,” said community groups plan to fight it in federal court, mirroring ongoing legal battles against Florida’s similar law. In 2023, the Department of Justice said that law — which also bans citizens from Cuba, Syria and Venezuela from owning property — breaks the Fair Housing Act and Equal Protection Clause requirements, but it remains in effect pending federal appeal.

Despite the criticism, Kolkhorst has stood by her legislation, stating in February that “Texas is not for sale to any nation deemed a threat to our national security.”