Texas lawmakers have introduced House Bill 2034 (HB2034), aimed at regulating groundwater permits for foreign individuals and entities. Proposed by Representative Gerdes on January 23, 2025, the bill seeks to restrict the issuance of these permits to individuals and organizations from countries deemed a national security risk by the U.S. Intelligence Community.

The bill defines "designated countries" as those identified in the three most recent Annual Threat Assessments. It outlines that permits cannot be issued to foreign entities if there is a likelihood of them engaging in activities that could harm public health, safety, or welfare, including criminal acts or corporate espionage.

Notably, the bill exempts U.S. citizens and lawful permanent residents, allowing them to obtain permits regardless of their country of origin. This provision aims to balance national security concerns with the rights of individuals and businesses operating within Texas.

Debate surrounding HB2034 has already begun, with proponents arguing it is essential for protecting Texas resources and national security. Critics, however, express concerns that the bill could unfairly target foreign investors and hinder economic growth, particularly in sectors reliant on water resources.

The implications of HB2034 could be significant, as Texas grapples with ongoing water scarcity issues. By limiting foreign access to groundwater permits, the bill may impact agricultural and industrial sectors that depend on these resources. Experts suggest that while the bill addresses legitimate security concerns, it could also lead to unintended consequences for the state's economy.

As the legislative process unfolds, stakeholders from various sectors will be closely monitoring the discussions and potential amendments to HB2034, which could shape the future of water management and foreign investment in Texas.