By Vanguard Staff
AUSTIN, Texas — The ACLU is denouncing a controversial Texas bill that bars residents of certain countries from purchasing or leasing property in the state, calling it unconstitutional and discriminatory.
SB 17, which passed the Texas legislature on Friday and now awaits Governor Greg Abbott’s signature, would prohibit individuals and entities from countries deemed “hostile” — including China, Iran, North Korea, and Russia — from acquiring real estate in Texas.
According to the ACLU, the bill “violates the First Amendment and the Equal Protection Clause by banning individuals from participating in the Texas economy and building a life in our state — based solely on their nationality or political associations.”
The legislation allows the governor to expand the list of restricted countries beyond those named in U.S. intelligence threat assessments. It also permits the attorney general to initiate in rem legal proceedings (against the property itself) to force the divestment of properties held in violation of the statute. The bill defines real property broadly to include agricultural land, homes, businesses, mineral rights, and water rights.
The law would also allow the state to appoint a receiver to sell such properties, with proceeds returned only after liens and enforcement costs are recovered. Leases of 100 years or more are treated similarly to ownership and therefore fall under the ban. There is an exemption for U.S. citizens and lawful permanent residents, even if they are also citizens of a targeted country.
Critics say these provisions will inevitably lead to racial profiling, housing discrimination, and state overreach.
“S.B. 17 denies people meaningful access to housing and business opportunities,” said Sarah Cruz, policy and advocacy strategist for immigrants’ rights at the ACLU. “The bill would promote racial profiling against citizens and non-citizens wanting to purchase or lease property, as well as cause sellers to discriminate against potential buyers.”
Cruz added, “The bill also gives the governor and attorney general the unconstitutional power to dictate foreign policy and target countries and residents on a whim. Texas already has tools to protect public safety while upholding an individual’s right to basic needs and a fair legal process. Instead of fanning the flames of anti-immigrant hate, Texas politicians should focus on funding our public schools and increasing access to health care.”
While the bill’s authors claim it is intended to guard against foreign influence and protect critical resources, immigrant rights organizations see S.B. 17 as a revival of earlier efforts like 2023’s S.B. 147, which sparked backlash over fears it would target Chinese Americans and other Asian communities.
S.B. 17 is scheduled to take effect September 1, 2025, if signed into law. The ACLU has not ruled out a legal challenge.
