Sponsor
Joshua David Hawley
Senator · R-MO
Senator · R-MO
Official title: Prohibit the acquisition and ownership of agricultural land and residential real property by certain foreign entities, and for other purposes.
Introduced July 10, 2025 by Joshua David Hawley · Last progress July 10, 2025
The bill strengthens protection of U.S. agricultural land and residential real estate from certain foreign influence and improves enforcement and oversight, but it does so with broad definitions, rapid divestment deadlines, and severe penalties that risk ensnaring legitimate parties, disrupting farms and housing markets, and imposing substantial compliance and fiscal costs.
Farmers and rural communities face reduced foreign control of U.S. agricultural land, helping preserve local ownership and decision-making for farms and rural economies.
Taxpayers and national security interests gain stronger deterrence against foreign influence through new civil fines, criminal penalties, and forfeiture authorities for violations.
State, territorial, and federal administrators get clearer statutory definitions (e.g., of 'State', 'territory', protected agricultural land, and 'noncompete agreement'), improving the ability to apply and administer the law.
A broad and vague definition of 'covered foreign entity' (including entities with Chinese ties, Hong Kong/Macau firms, and entities acting 'on behalf of' the PRC) risks ensnaring U.S. businesses, universities, investors, and partners, creating heavy compliance burdens and chilling legitimate investment.
Covered foreign owners are required to divest holdings within one year, risking abrupt sales that can cause significant asset-value losses and disrupt farm operations, employment, and local housing markets.
High per-unit and per-acre fines plus criminal penalties and forfeiture exposure (e.g., $100/acre/day; $1,000/unit/day) create large financial liabilities, increase litigation risk, and may result in loss of property for owners and creditors.
Based on analysis of 4 sections of legislative text.
Bars PRC‑linked entities from buying/leasing U.S. agricultural land and from buying residential real estate during a temporary covered period; requires divestment and imposes fines and criminal penalties.
Prohibits companies, entities, or individuals defined as "covered foreign entities" tied to the People’s Republic of China from buying or leasing U.S. agricultural land and from purchasing most residential real estate for a temporary covered period. It requires existing covered foreign owners or lessees of U.S. agricultural or residential property to sign intent-to-divest letters and complete divestment on set timetables, creates civil and criminal penalties for violations (including fines, imprisonment, forfeiture, and public auction), and directs USDA and Commerce to establish offices, guidance, monitoring, enforcement, and reporting functions to implement the law.