Texas Scorecard By Travis Morgan September 12, 2025
The lawsuit was brought by three Chinese nationals who are in the U.S. on visas.Texas’ foreign land ban is being challenged in a federal court of appeals. The lawsuit was filed by the Chinese American Legal Defense Alliance, a New Jersey-based nonprofit.
The ban, also known as Senate Bill 17, prohibits foreign adversaries—such as China, Russia, Iran, and North Korea—and entities from those nations from acquiring real estate in Texas. It also includes provisions to allow the attorney general to investigate violations and initiate divestment actions in court.
In its 2025 annual threat assessment, the U.S. Office of the Director of National Intelligence designated the above countries as national security threats.
State Rep. Cole Hefner (R–Mount Pleasant) explained the purpose of the measure when introducing it in the House.
“Senate Bill 17 is the strongest, most comprehensive, and broad law in the nation that protects us from hostile foreign ownership of our land,” he said. “Senate Bill 17 thoughtfully strikes a balance by exercising appropriate police powers reserved for the state within the bounds of the Texas and United States constitutions.”
Gov. Greg Abbott signed SB 17 into law on June 20. It took effect on September 1.
The Lawsuit
On July 3, a lawsuit was filed against Attorney General Ken Paxton challenging SB 17 in a federal district court in Houston. The Chinese American Legal Defense Alliance (CALDA) hoped to convince the court to prohibit the law’s enforcement before it took effect.
Plaintiffs include Peng Wang, Qinlin Li, and Yisi Wang. They are all citizens of China who are in the U.S. on visas.
More:
https://texasscorecard.com/state/lawsuit-against-texas-foreign-land-ban-pending-in-federal-court-of-appeals/
