S 2258

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IN THE SENATE OF THE UNITED STATES

July 10, 2025

Mr. Hawley introduced the following bill; which was read twice and referred to the Committee on Agriculture, Nutrition, and Forestry

A BILL

To prohibit the acquisition and ownership of agricultural land and residential real property by certain foreign entities, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Protecting Our Farms and Homes from China Act”.

SEC. 2. DEFINITIONS.

In this Act:

(1) Agricultural land.—

(A) In general.—The term “agricultural land” means—

(i) land used for farming, ranching, or timber production;

(ii) land used for food processing; and

(iii) land that—

(I) is currently idle; and

(II) was used within the previous 5 years for farming, ranching, or timber production.

(B) Related definitions.—In subparagraph (A):

(i) Farming, ranching, or timber production.—The term “farming, ranching, or timber production” includes activities set forth in the Standard Industrial Classification Manual (1987), Division A.

(ii) Food processing.—The term “food processing” includes activities set forth in the Standard Industrial Classification Manual (1987), Division D, Major Group 20.

(2) Covered foreign entity.—The term “covered foreign entity” means—

(A) a corporation that is incorporated in the People’s Republic of China, including the Special Administrative Regions of China, including Hong Kong and Macau;

(B) a person, business trust, business association, company, institution, government agency, university, partnership, limited liability company, corporation, or any other individual or organization that can legally enter into contracts, own properties, or pay taxes on behalf of the Government of the People’s Republic of China;

(C) an individual or organization affiliated with the Chinese Communist Party;

(D) an entity owned or controlled by, or that performs activities on behalf of, an individual, organization, or person described in subparagraph (A),

(B), or (C); and

(E) an individual that is a member of the board of directors, an executive officer, or a senior official of a corporation or organization described in subparagraph (A), (B), (C), or (D).

(3) Noncompete agreement.—The term “noncompete agreement” means an agreement entered into between an employer and an employee that restricts that employee from performing, after the employment relationship between the employer and the employee terminates, any of the following:

(A) Any work for another employer for a specified period of time.

(B) Any work in a specified geographical area.

(C) Any work for another employer that is similar to that employee’s work for the employer that is a party to that agreement.

(4) Secretary.—The term “Secretary” means the Secretary of Agriculture.

(5) State.—The term “State” means each of the several States of the United States.

(6) Territory.—The term “territory” means—

(A) the District of Columbia;

(B) the Commonwealth of Puerto Rico;

(C) the United States Virgin Islands;

(D) Guam;

(E) the Commonwealth of the Northern Mariana Islands; and

(F) American Samoa.

(7) United states agricultural land.—The term “United States agricultural land” means agricultural land located in a State or territory.

SEC. 3. PROHIBITION OF ACQUISITION, LEASING, OR OWNERSHIP OF UNITED STATES AGRICULTURAL LAND BY COVERED FOREIGN ENTITIES.

(a) Prohibition of Acquisition of Agricultural Land.—It shall be unlawful for a covered foreign entity—

(1) to acquire any interest in United States agricultural land; or

(2) to lease any interest in United States agricultural land.

(b) Divestment Requirement.—

(1) In general.—Not later than 1 year after the date of enactment of this Act, a covered foreign entity that owns or leases an interest in United States agricultural land shall divest itself from any ownership or lease interests in United States agricultural land.

(2) Letters of intent.—Not later than 180 days after the date of enactment of this Act, a covered foreign entity that owns or leases an interest in United States agricultural land shall sign a letter of intent to divest itself from any ownership or lease interests in United States agricultural land.

(c) Penalty.—The Secretary shall fine a covered foreign entity that owns or leases an interest in United States agricultural land in violation of subsection (a) or (b) in an amount equal to $100 per acre per day that the covered entity owns or leases the interest in violation of subsection (a) or (b).

(d) Criminal Enforcement.—

(1) Penalties.—A covered foreign entity that violates subsection (a) or (b) shall be fined under title 18, United States Code, imprisoned for not more than 5 years, or both.

(2) Forfeiture.—

(A) In general.—In an action brought by the Attorney General, any United States agricultural land owned in violation of subsection (a) or (b) shall be subject to forfeiture to the United States in accordance with chapter 46 of title 18, United States Code.

(B) Public auction of forfeited land.— Notwithstanding section 981(e) of title 18, United States Code, the Attorney General shall sell through a public auction any United States agricultural land that is forfeited to the United States under this paragraph.

(e) Nullification of Agreements.—Notwithstanding any other provision of law, any noncompete agreement entered into between a covered foreign entity that owns or leases an interest in United States agricultural land and an employee of the covered foreign entity shall have no force or effect.

(f) Implementation.—

(1) In general.—Not later than 180 days after the date of enactment of this Act, the Secretary, in coordination with the Attorney General, shall issue guidance and regulations to implement this Act.

(2) Office.—Not later than 180 days after the date of enactment of this Act, the Secretary shall establish an office within the Department of Agriculture for the purpose of—

(A) monitoring compliance with this Act; and

(B) imposing fines under subsection (c).

(g) Investigative Actions.—The Secretary may carry out such actions as the Secretary determines to be necessary to monitor compliance with this Act.

SEC. 4. TEMPORARY PROHIBITION ON PURCHASING RESIDENTIAL REAL ESTATE.

(a) Definitions.—In this section:

(1) Covered period.—The term “covered period” means the period—

(A) beginning on the date of enactment of this Act; and

(B) ending on—

(i) the date that is 2 years after the date of enactment of this Act; or

(ii) if the President makes an extension under subsection (f), the date on which the extension expires under that subsection.

(2) Residential real estate.—The term “residential real estate” means—

(A) a single-family home;

(B) a unit in a condominium or a condominium;

(C) a townhouse;

(D) a unit in a cooperative or a cooperative;

(E) a unit in a duplex or a duplex;

(F) a unit in a triplex or a triplex;

(G) a unit in a fourplex or a fourplex; and

(H) a parcel of land that a local government has zoned for development of a type of housing described in this paragraph.

(3) Secretary.—The term “Secretary” means the Secretary of Commerce.

(b) Prohibition.—A covered foreign entity may not purchase a unit of residential real estate in the United States during the covered period.

(c) Divestment Requirement.—Not later than 1 year after the date of enactment of this Act, a covered foreign entity shall divest itself from any ownership of units of residential real estate in the United States.

(d) Penalty.—With respect to each unit of residential real estate owned by a covered foreign entity in violation of subsection (b) or

(c), the Secretary shall fine the covered foreign entity in an amount equal to $1,000 for each day the covered foreign entity owns the unit of residential real estate in violation of either of those subsections.

(e) Enforcement.—The Attorney General may enforce the provisions of this Act, including by seizing assets and seeking appropriate injunctive relief.

(f) Presidential Extensions.—On the date that is 2 years after the date of enactment of this Act, and every 2 years thereafter, the President may extend the covered period for an additional 2 years.

(g) Implementation.—

(1) In general.—The Secretary, in coordination with the Attorney General, shall issue guidance and regulations for the implementation of this Act.

(2) Office.—The Secretary shall establish an office within the Department of Commerce for the purpose of—

(A) monitoring compliance with this Act; and

(B) imposing fines under subsection (d).

(h) Report.—Not later than 540 days after the date of enactment of this Act, the Secretary shall submit to Congress a report that details the impact of the prohibition under subsection (b) on the residential real estate market and housing affordability in the United States. <all>