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ARTICLE · 03 APRIL 2025

Will Texas Become The First State To Enact A "Mini-CFIUS" Review Process?

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On March 13, 2025, the Texas Legislature introduced HB 5007, which, if enacted, could establish the first US state regime tasked with screening foreign investments on national security grounds.

United StatesGovernment, Public Sector
Jonathan Rotenberg
Jonathan Rotenberg
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On March 13, 2025, the Texas Legislature introduced HB 5007, which, if enacted, could establish the first US state regime tasked with screening foreign investments on national security grounds.1

To be sure, this is not the first attempt by Texas to regulate acquisitions by foreign buyers within the state. The Lone Star Infrastructure Protection Act2 (LIPA), which took effect in June 2021, prohibits Texas businesses from contracting with entities owned or controlled by individuals from China, Russia, North Korea and Iran if the contracting relates to critical infrastructure.3 In addition, many other states have passed legislation limiting certain foreign investments into agricultural land within their borders.4 Others are debating similar legislation.

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