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HB 2389

Relating to prohibiting the purchase of or acquisition of title to real property by and contracts or other agreements with certain aliens or foreign entities.

89th Legislature (2025) Introduced by Daniel Alders and 26 co-sponsors

HB 2389 prohibits certain non-citizens and foreign entities from purchasing Texas real property or entering related contracts, raising constitutional and practical implementation concerns.

Referred to Homeland Security, Public Safety & Veterans' Affairs
#aliens(i0032) #internationalrelations(s0038) #iran(g0378) #northkorea(g65li) #people'srepublicofchina(gn3a2) #politicalsubdivisions(i0588) #propertyinterests--realproperty(i0595) #purchasing--state(i0643) #russia(g0564)
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WeVote Research Nonpartisan
Bill Summary · HB 2389

Legislative bill overview

HB 2389 would prohibit certain aliens and foreign entities from purchasing or acquiring title to real property in Texas, or from entering into contracts related to real property acquisition. The bill restricts property ownership rights based on citizenship and national origin status, affecting both direct purchases and contractual agreements for real estate transactions.

Why is this important

Property ownership restrictions based on foreign status could significantly impact real estate markets, agricultural land sales, and commercial development in Texas. This raises questions about implementation, enforceability, potential constitutional challenges, and reciprocal effects on Texas businesses and citizens operating abroad.

Potential points of contention

  • Constitutional concerns: Restrictions on property ownership by non-citizens may face legal challenges under the Takings Clause, Equal Protection Clause, and Commerce Clause; similar laws in other states have faced litigation
  • Definitional ambiguity: The bill's language regarding "certain aliens" and "foreign entities" lacks specificity—unclear which visa holders, permanent residents, or corporate structures would be affected
  • Economic impacts: Could reduce foreign investment in Texas real estate, agricultural land, and commercial properties; may affect property values and tax revenue while creating enforcement and verification burdens
  • Implementation challenges: Determining citizenship/foreign status in transactions, monitoring contractual agreements, and defining "foreign entities" (subsidiary corporations? partnerships?) would require significant administrative resources

Compiled from official sources — confirm details with the bill’s official record.

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