Summary of Texas Proposed Bill HB 191 (2025)

Relating to the purchase or acquisition of title to real property by certain foreign entities.

HB 191 is a proposed bill in Texas that seeks to regulate the purchase or acquisition of real property by certain foreign entities, such as foreign governments, corporations, or individuals. The bill would establish restrictions and requirements for the acquisition of real estate within the state of Texas, particularly targeting foreign influence over the state’s land and property market.

Key Provisions of the Bill:

1. Restrictions on Foreign Ownership:
   • The bill proposes to restrict or regulate the ability of certain foreign entities to purchase or acquire real property in Texas.
   • Specifically, the bill focuses on foreign governments, foreign corporations, and other entities controlled by foreign interests that may have interests in acquiring property in Texas.
   • The bill likely aims to address national security concerns or issues related to foreign influence, especially from countries that may have conflicting interests with the United States.
2. Exemptions:
   • The bill may outline exemptions for specific types of foreign entities, such as those engaged in business activities that contribute to the state’s economy, or individuals purchasing property for personal use.
   • Some foreign acquisitions may still be allowed, particularly those that align with business or investmentactivities in Texas, but they would need to meet certain criteria to be eligible.
3. Government Review and Approval:
   • Foreign entities looking to purchase property may be required to go through a review and approval processby state authorities before the transaction can be completed.
   • This review process may involve checks related to national security, economic impact, and whether the acquisition is in the best interests of Texas residents and the state’s economic security.
4. Transparency and Reporting:
   • The bill might require foreign entities to disclose their intent to purchase property in Texas, as well as their ownership structure and any affiliations with foreign governments or interests.
   • Transparency provisions would likely ensure that these transactions are publicly reported and open to scrutiny by both state officials and the public.
5. Land and Property Use Concerns:
   • One of the central concerns driving this bill is the potential for foreign ownership of large tracts of agricultural land, commercial properties, or even land near military bases or critical infrastructure. These concerns focus on issues such as:
     • National security risks related to foreign control over strategic land.
     • Economic dominance by foreign interests, which could undermine local businesses or contribute to rising property prices.
6. Penalties and Enforcement:
   • The bill would likely set out penalties for foreign entities that violate the restrictions or fail to comply with the registration and approval processes.
   • This could include fines or the reversal of property transactions that were deemed illegal or improperly approved.

Potential Impact of the Bill:

Pros:

• National Security: The bill is designed to protect Texas and the United States from potential foreign influence on critical infrastructure, especially regarding land near military or strategic locations.
• Economic Protection: By limiting foreign ownership, the bill could help preserve local control over the state’s land market and prevent the concentration of too much land in foreign hands.
• Transparency: The bill’s focus on transparency would ensure that foreign acquisitions of real estate are subject to review and oversight, making it more difficult for potentially harmful foreign entities to secretly control large amounts of land.

Cons:

• Impact on Foreign Investment: The bill may discourage legitimate foreign investment in Texas, particularly in sectors that provide economic benefits like agriculture, real estate development, and business operations.
• Legal Challenges: The bill could face legal challenges on the grounds of property rights or international trade agreements, especially if it is seen as discriminatory against foreign investors or violates constitutional protections on private property.
• Possible Trade Retaliation: Countries affected by the restrictions may retaliate, which could affect the state’s international relations or lead to trade restrictions.

Context and Rationale:

The bill comes at a time when there is increasing concern in some parts of the U.S. about foreign ownership of land and its potential impact on national security, economic independence, and local communities. This issue has gained attention due to specific instances where foreign entities, particularly from China and other foreign governments, have been purchasing large tracts of land in rural or strategic areas. The bill seeks to balance Texas’ open market system with the need for national security and local control over its resources.