Protecting Our Farms and Homes from China Act
The Protecting Our Farms and Homes from China Act would sharply restrict foreign ownership of U.S. land by defining a broad category of "covered foreign entities" (primarily Chinese-affiliated groups and individuals) and prohibiting them from acquiring or leasing U.S. agricultural land. It also imposes a mandatory divestment timeline and penalties for noncompliance, including fines, criminal penalties, and potential forfeiture. In addition, the bill temporarily bars covered foreign entities from purchasing residential real estate in the United States for a renewable two-year period, with automatic divestment requirements and daily fines for violations. The act also establishes implementation offices in relevant agencies (Department of Agriculture and Department of Commerce) to monitor compliance, issue guidance, and enforce penalties, and requires a Congress-facing report on the residential real estate impact within about 18 months. Overall, the bill aims to shield U.S. farmland and housing from foreign ownership by those deemed aligned with the Chinese government, at the cost of potential disruption to current owners and foreign investment patterns and with substantial regulatory and enforcement mechanisms.
Key Points
- 1Prohibition of acquisition or leasing of United States agricultural land by covered foreign entities, with a one-year divestment deadline and a 180-day requirement to sign a divestment letter of intent; penalties include $100 per acre per day, plus potential criminal penalties (up to 5 years’ imprisonment) and forfeiture of land via public auction.
- 2Broad definition of covered foreign entity, including entities incorporated in the PRC (including Hong Kong and Macau), organizations that can legally contract or pay taxes for the PRC, CCP-affiliated individuals, and entities/individuals linked to them (including board members or senior officials).
- 3Nullification of noncompete agreements between covered foreign entities and their employees for purposes of this act.
- 4Implementation provisions: the Secretary of Agriculture (in coordination with the Attorney General) would issue guidance and regulations within 180 days and create an USDA office to monitor compliance and impose fines; the Attorney General could enforce penalties and seize assets as needed.
- 5Temporary prohibition on purchasing residential real estate by covered foreign entities for a "covered period" of up to two years from enactment, with a possible two-year renewal by the President; divestment within one year and a $1,000-per-day per unit penalty for violations; enforcement by the Attorney General, including potential asset seizure and injunctive relief; a Commerce Department office would monitor compliance and impose fines.
- 6A two-stage implementation and reporting framework: guidance and regulatory actions in 180 days (Agriculture and Commerce departments), and a congressional report within 540 days detailing the impact on the residential real estate market and housing affordability.