Nebraska limits foreign real estate ownership under new National Security Act

The Nebraska State Legislature convened on April 8, 2025, to introduce Legislature Bill 7, a significant piece of legislation aimed at regulating foreign ownership of real estate and natural resources within the state. The bill seeks to address national security concerns by restricting certain foreign entities from acquiring real estate and hydrocarbon leases in Nebraska.

Key provisions of the bill include a prohibition on nonresident aliens, foreign corporations, and governments from purchasing or acquiring real estate or leasehold interests exceeding five years, effective January 1, 2025. This restriction extends to entities identified on U.S. sanctions lists and those deemed a threat to national security by the Secretary of Commerce. The bill also outlines compliance requirements with the Agricultural Foreign Investment Disclosure Act for any foreign real estate transactions.

Debate surrounding the bill has been notable, with proponents arguing that it is essential for protecting Nebraska's resources and ensuring that foreign entities do not undermine national security. Critics, however, have raised concerns about potential economic repercussions, including the impact on foreign investment and the agricultural sector, which relies on international partnerships.

The bill's implications are significant, as it not only restricts foreign ownership but also establishes a framework for divestment of properties acquired in violation of the act. Experts suggest that while the bill may bolster state security, it could also deter foreign investment, which has historically contributed to Nebraska's economic growth.

As the legislative process continues, stakeholders are closely monitoring the bill's progress, anticipating further discussions and potential amendments that could shape its final form. The outcome of Legislature Bill 7 may set a precedent for how states regulate foreign investment in critical sectors, reflecting broader national security priorities.