The Texas House made a significant decision late Thursday, empowering the governor to identify countries whose residents and entities might be prohibited from purchasing property in the state. This decision was made as an amendment to Senate Bill 17, originally restricting property sales only to nations deemed as threats by the U.S. national director of intelligence, a list which currently includes China, Iran, North Korea, and Russia. By granting the governor additional authority to modify this list of restricted countries, the House subsequently approved the bill in a preliminary vote of 85-60. The proposed legislation will now return to the Senate for further consideration.
State Representative Nate Schatzline from Fort Worth, who proposed the amendment, stressed the importance of allowing the governor to promptly address any potential threats to Texas without waiting for the federal designation. Schatzline explained, “Our governor can act swiftly rather than waiting for a year for that to be added into the director of national intelligence’s designated country list.”
However, the decision was met with criticism from several Democrats. State Representative Gene Wu, leading the House Democratic Caucus, voiced his concerns about the governor having unchecked authority to determine which countries could be restricted, labeling it “the definition of overreach.” Schatzline’s amendment also included the provision that the governor could include “transnational criminal organizations” in the list of entities prohibited from purchasing Texan property, citing the Venezuelan gang, Tren de Aragua, as an example.
During an extensive debate, State Representative Cole Hefner, who sponsored SB 17, emphasized the importance of safeguarding Texas land and natural resources from potentially hostile nations. Democratic lawmakers expressed their apprehension that the bill might be discriminatory, particularly against Asian Americans, and potentially harm the state’s economy. The legislation will need one final approval in the House before returning to the Senate, which had already passed a different version.
The Senate’s initial version included an exemption for anyone or entities leasing property for less than 100 years. However, the House narrowed this exemption to a one-year lease maximum. Representative Mitch Little criticized the original lease allowance, calling it “a loophole that you could drive a Mack truck through.” Additionally, the House had amended the bill to exempt lawful permanent residents, but efforts by Democrats to introduce further exemptions, including those for visa holders, were unsuccessful.
Brenham Republican Senator Lois Kolkhorst, the bill’s author, reaffirmed her commitment to protect Texas’ assets from “hostile nations,” describing the matter as a national security issue. Previously, a similar effort did not pass in the House, but a shift toward more conservative representation has renewed momentum for such legislative initiatives. If passed, the proposed law is slated to become effective September 1, applying to property acquisitions post that date.
While the precise amount of Texas land owned by foreign entities remains unspecified outside agricultural data, it is reported that Chinese investors own less than 1% of the U.S. foreign-held acreage according to 2021 data. This prompted support from members like Rep. Angie Chen Button, who conveyed the importance of the bill in protecting “freedom, liberty and national security.”
Meanwhile, some members of the Asian community, such as Lily Trieu, director of Asian Texans for Justice, fear that the bill could lead to “state-sanctioned racial profiling.” Although the bill doesn’t directly restrict land purchases based on national origin, concerns persist over its potential implications on all Asian communities within Texas. Democrat Gene Wu pointed out the potential misunderstandings regarding immigration status and nationality, warning of simmering racial tensions.
Trieu emphasized the need to discern between individuals and governments, asserting that no individual should be held accountable for the actions or ideologies of their national governments. Her organization aims to increase civic engagement among Asian Texans, a mission that has gained urgency in light of this bill.
Wu believes that the bill could provoke significant political shifts among Asian American voters, possibly moving them toward the Democratic Party in future elections. He remarked on the potential consequences for the Republican Party, stating, “I think the Republicans are heading into gale force winds in 2026 if they want to alienate and make enemies of an entire community who for a large part has stayed out of politics.” Overall, the ongoing debate raises significant questions about state powers, minority rights, and national security.