S. 2258 — Protecting Our Farms and Homes from China Act

This section defines terms used in the Act, including (1) agricultural land, meaning land used for farming, ranching, timber production (per Standard Industrial Classification Manual Division A), food processing (Major Group 20), or currently idle land used for the former within the previous five years; (2) covered foreign entity, including corporations incorporated in China (including Hong Kong and Macau), entities acting on behalf of the Chinese government, Chinese Communist Party affiliates, related controlled entities, and certain senior individuals; (3) noncompete agreement, meaning an employer-employee agreement restricting post-termination work by time period, geographic area, or type of work; and (4) standard terms for Secretary (of Agriculture), State (each of the 50 states), territory (District of Columbia and specified insular areas), and United States agricultural land (agricultural land in a state or territory).

This section prohibits covered foreign entities from acquiring or leasing any interest in U.S. agricultural land and requires divestment of any existing ownership or lease interests within one year of enactment (with a letter of intent due within 180 days). Violations incur civil penalties of $100 per acre per day imposed by the Secretary of Agriculture and criminal penalties including fines under title 18, United States Code, imprisonment for up to five years, or both, plus forfeiture of the land to the United States for public auction by the Attorney General. This section nullifies noncompete agreements between covered foreign entities and their employees; directs the Secretary, in coordination with the Attorney General, to issue implementing guidance and regulations within 180 days; requires the Secretary to establish a compliance monitoring and enforcement office within the Department of Agriculture within 180 days; and authorizes the Secretary to conduct necessary investigative actions.

This section establishes a temporary prohibition, during a covered period beginning on the date of enactment and lasting two years (extendable by the President in two-year increments), on covered foreign entities purchasing residential real estate in the United States (i.e., single-family homes, condominium or cooperative units, townhouses, units in duplexes, triplexes, or fourplexes, or land zoned for such housing). It requires covered foreign entities to divest any such ownership within one year of enactment; imposes a penalty of $1,000 per day per unit for violations; authorizes the Attorney General to enforce the prohibition, including through asset seizures and injunctive relief; directs the Secretary of Commerce, in coordination with the Attorney General, to issue implementing guidance and regulations and to establish a compliance monitoring office; and requires the Secretary to submit a report to Congress within 540 days of enactment assessing the prohibition's impact on the residential real estate market and housing affordability.