In a significant move aimed at regulating land ownership in Illinois, the state Senate has introduced SB1364, a bill that seeks to restrict foreign entities from acquiring public and private land. Introduced on January 30, 2025, the legislation is designed to address growing concerns about foreign influence in local real estate markets and its potential impact on community resources.

The bill specifically targets "prohibited foreign-party-controlled businesses," which are defined as entities that are primarily owned or controlled by foreign interests. Under SB1364, these businesses would be barred from acquiring any interest in land within Illinois, whether through purchase, grant, or inheritance. If such entities currently hold land, they would be required to divest within two years. Failure to comply would result in legal action initiated by the Attorney General, potentially leading to judicial foreclosure and sale of the property.

Supporters of the bill argue that it is essential for protecting local economies and ensuring that land remains in the hands of residents rather than foreign investors. They contend that unchecked foreign ownership could lead to inflated property values and reduced availability of land for local development. Critics, however, warn that the bill could deter foreign investment in Illinois, which may have broader economic implications, including job creation and infrastructure development.

The bill has sparked notable debate among lawmakers, with some expressing concerns about its potential to infringe on property rights and the implications for international relations. Amendments may be proposed to address these issues, but the core objective remains focused on limiting foreign control over local land.

As the legislative process unfolds, the implications of SB1364 will be closely monitored by community members and stakeholders alike. If passed, the bill could reshape the landscape of land ownership in Illinois, reflecting a growing trend among states to scrutinize foreign investments in critical sectors. The outcome of this legislation may not only influence real estate dynamics but also signal a shift in how states approach foreign investment in the future.