Sponsors (4)
The bill aims to strengthen national security and clarify enforcement by restricting certain PRC-linked property purchases and tightening AFIDA penalties, but it does so through nationality-based bans, compulsory divestitures, and higher penalties that could depress local property markets, impose financial pain on owners and small farmers, create administrative burdens, and risk diplomatic or discrimination concerns.
Taxpayers and communities near strategic sites: reduces the risk of PRC-linked control of sensitive real estate near military, infrastructure, or other strategic sites, strengthening U.S. national security.
Homeowners who are U.S. citizens or lawful permanent residents: preserves personal-use homes from forced-sale requirements by exempting citizens and LPRs, protecting family housing and property stability.
State and federal enforcement entities: creates a clearer federal legal framework to limit foreign influence through property ownership and to support disclosure and enforcement actions.
Homeowners, local real estate markets, and taxpayers: barring PRC citizens lawfully present (except refugees/asylees) from buying U.S. real estate shrinks the buyer pool and could depress property values in affected markets.
Immigrants, targeted individuals, and U.S. diplomatic/economic interests: nationality-based prohibitions risk discrimination claims and diplomatic retaliation that could harm broader U.S. interests and trade.
Small-business owners, investors, and property owners: owners subject to forced sale may be compelled to divest within one year, creating rushed sales and potential financial losses.
Based on analysis of 3 sections of legislative text.
Bars certain Chinese citizens, covered foreign entities, and related foreign persons from buying U.S. real estate and allows one-year forced divestiture for national security risks; sets AFIDA penalty between 10%–25%.
Introduced January 22, 2025 by Thomas Bryant Cotton · Last progress January 22, 2025
Prohibits citizens of the People’s Republic of China, specified foreign entities, and foreign persons acting for or on behalf of those actors from purchasing public or private real estate in the United States as of enactment, and authorizes the President to require divestiture within one year for existing U.S. real estate holdings that the President determines pose a national security risk. Provides limited exceptions for individuals who entered the U.S. as refugees or who were granted asylum or withholding of removal, and exempts personal-use real estate owned by U.S. citizens or lawful permanent residents from the sale requirement. The bill also changes a penalty provision in the Agricultural Foreign Investment Disclosure Act to specify a penalty floor and ceiling (not less than 10 percent and not greater than 25 percent).