A federal appeals court upheld a Florida law on Tuesday that restricts Chinese nationals and entities affiliated with the Chinese Communist Party (CCP) from purchasing land in the state. The 11th Circuit Court of Appeals ruled 2-1 that the plaintiffs challenging the law did not have standing to pursue their case.
The court's decision follows a district court's denial of a preliminary injunction that would have blocked the enforcement of the statute, known as SB 264. The majority opinion stated, "After careful review, and with the benefit of oral argument, we affirm the denial of the plaintiffs’ preliminary injunction motion as to the registration and affidavit requirements. But we reverse and remand for the district court to deny the preliminary injunction motion without prejudice as to the purchase restriction because none of the plaintiffs have shown they have standing to challenge that provision of SB 264."
Judges Robert Luck and Barbara Lagoa, both appointed by former President Donald Trump, formed the majority, while Judge Charles Wilson, appointed by former President Bill Clinton, dissented.
SB 264 prohibits most Chinese citizens from purchasing Florida real estate and mandates reporting of existing holdings near critical infrastructure. The law received broad bipartisan support amid growing concerns about CCP-affiliated individuals acquiring agricultural land or property near sensitive installations.
Florida Governor Ron DeSantis praised the ruling, calling it a "Great victory for our law keeping the CCP out of Florida!" Florida Attorney General James Uthmeier also expressed approval, labeling the decision a "huge win" for the state.
The issue of CCP-affiliated land purchases has raised significant national security concerns in recent years, particularly regarding properties located near U.S. military bases. A June 2024 analysis by the New York Post identified 19 military bases across the U.S. that are in close proximity to land acquired by Chinese entities, raising fears of espionage.
Chuck DeVore, a Federalist Senior Contributor, previously highlighted the strategic risks associated with these purchases, stating, "The FBI’s ongoing counterintelligence investigations and warnings from experts underscore the urgency of addressing the national security risks posed by Chinese-owned real estate."
According to a Congressional Research Service report from August 2024, at least 22 states enacted legislation regulating foreign ownership of real property between January 2023 and July 2024. This trend reflects a growing recognition of the potential threats posed by foreign entities in the U.S. real estate market.
Why it matters
- Legal or policy outcomes depend on hearings, rulemaking, and potential court challenges.
- The 11th Circuit's ruling reinforces Florida's SB 264, aimed at limiting CCP-affiliated land purchases, amid rising national security concerns.
- The decision highlights bipartisan support for measures against foreign ownership of U.S. real estate, particularly near military bases.
- Governor DeSantis and Attorney General Uthmeier's endorsements signal strong state backing for the law, emphasizing its perceived importance.
What’s next
- The district court will now address the preliminary injunction motion regarding the purchase restriction of SB 264.
- Further legislative actions may arise as other states observe Florida's approach to foreign real estate ownership.
- Ongoing investigations into CCP-affiliated land purchases could lead to additional federal scrutiny and regulations.