Comprehensive Policy for Banning Foreign Ownership of U.S. Land
- Scope of the Ban
Entities Covered:
The ban would apply to all foreign-owned companies, sovereign wealth funds, and entities controlled (directly or indirectly) by foreign governments or individuals.
It would include companies with more than 25% foreign ownership to prevent domestic entities from serving as fronts for foreign interests.
Types of Land Covered:
Agricultural Land: Ban foreign ownership of farmland to protect U.S. food supply chains and prevent monopolization of agricultural resources.
Land Near Critical Infrastructure: Restrict foreign ownership within certain proximities to military bases, power plants, water sources, and technology hubs.
Public and Nationally Sensitive Land: Include forests, protected lands, and properties with natural resources, such as oil and minerals, which may have national security implications.
- Exemptions and Special Cases
Limited Exemptions for Certain Non-Sensitive Real Estate:
Residential properties purchased by individuals (not corporations) for personal use, under strict limits (e.g., a cap of one property per foreign individual) and oversight.
Foreign businesses leasing commercial real estate for operational use without ownership rights.
Special Approval Process for Unique Cases:
A Foreign Investment Review Committee could evaluate rare cases where foreign land purchase is deemed beneficial to U.S. interests (e.g., substantial job creation), with transparency and public reporting.
- Enforcement and Oversight Mechanisms
Foreign Investment Review Committee (FIRC):
Establish a FIRC under the Department of Commerce or Treasury, tasked with reviewing all foreign land purchases and monitoring compliance with the ban.
The committee would be responsible for maintaining a public registry of foreign-owned properties, with annual reporting on compliance and enforcement actions.
Land Ownership Database:
Create a centralized, publicly accessible database of land ownership, listing properties owned by foreign entities and individuals. This would improve transparency and allow citizens to monitor foreign ownership trends.
Strict Penalties for Non-Compliance:
Foreign entities or individuals found violating the ban would face:
Forced Divestiture: Immediate sale of the land to U.S. citizens or companies within a set period.
Hefty Fines: Penalties proportional to the value of the property.
Criminal Charges for Willful Evasion: If entities intentionally circumvent the ban (e.g., using domestic front companies), they could face criminal prosecution.
- Retroactive Application and Existing Foreign-Owned Land
Review of Current Holdings:
Conduct a comprehensive review of foreign-owned land in the U.S. as of the policy’s enactment. Properties deemed to pose a risk to national security or critical resources would be subject to forced divestiture.
Gradual Divestiture for Sensitive Areas:
Foreign entities with holdings in sensitive areas (e.g., near military bases) would be required to divest within five years, with priority given to U.S.-owned buyers.
National Security-Based Seizure Rights:
For properties deemed critical to national security, the U.S. government would reserve the right to acquire these assets through eminent domain with fair compensation to the foreign owners.
- Economic and National Security Justifications
Protecting Food Security and Resources:
Foreign ownership of U.S. farmland could allow overseas entities to control or limit access to food supplies. Preventing this would protect U.S. food independence.
Safeguarding Critical Infrastructure:
Prohibiting foreign ownership near sensitive areas would reduce the risk of espionage, cyber-attacks, and other threats to national security.
Stabilizing Real Estate Prices for Americans:
Reducing foreign competition in the real estate market would help stabilize prices, making land and housing more accessible to U.S. citizens.
- Public Transparency and Accountability Measures
Public Access to Foreign Land Ownership Data:
The centralized ownership database would be updated regularly, and all transactions involving foreign entities would be documented and publicly accessible to ensure transparency.
Annual Reporting to Congress:
The FIRC would submit an annual report to Congress summarizing the number of foreign land purchases reviewed, properties held by foreign entities, and any enforcement actions taken.
- Regular Policy Review and Adjustment Mechanism
Five-Year Policy Review:
Every five years, Congress would review the policy to assess its effectiveness, economic impact, and national security benefits. Adjustments could be made based on findings and changing circumstances.
Public Input and Stakeholder Feedback:
Solicit feedback from farmers, local communities, and industry stakeholders to assess the policy’s impact on the domestic economy and ensure it is serving public interests