In a significant move to bolster its agricultural and natural resource security, the Idaho state legislature has enacted two pivotal bills during the 2025 legislative session. House Bill 356 (H356) and Senate Bill 1149 (S1149) collectively tighten the state’s restrictions on foreign investments in land, with a particular focus on entities from adversarial countries.
The legislative actions come as an amendment to Idaho’s existing foreign ownership law, which was enacted in 2023. The original law, codified under Idaho Code § 55-103, prohibited foreign governments and state-controlled enterprises from acquiring or holding agricultural land, as well as mineral and water rights within the state. However, the law lacked a clear enforcement mechanism, leaving a gap in its effectiveness.
S1149, signed into law by Governor Brad Little on April 3, 2025, addresses this enforcement gap. The bill empowers the Idaho Office of Attorney General (IOAG) to investigate potential violations and bring divestment actions against foreign investors found to be in breach of the state’s restrictions. If a court determines that land, mineral, or water rights are held in violation of the law, a receiver will be appointed to sell the assets, ensuring compliance with Idaho’s foreign ownership restrictions.
Following the enactment of S1149, the legislature passed H356 to further strengthen the state’s foreign ownership laws. The bill extends the restrictions to a broader set of foreign investors, specifically targeting “foreign principals from a foreign adversary” country. This includes both governmental and non-governmental entities from countries identified by the U.S. Secretary of Commerce as adversaries, such as China, Russia, and Iran.
One of the most notable aspects of H356 is its requirement for foreign principals to divest their interests in Idaho land, water rights, mining claims, or mineral rights by December 28, 2025. Additionally, foreign principals must register their interests with the appropriate state agencies within 60 days of the law’s effective date or the date of acquisition.
H356 also introduces a whistleblower provision, allowing individuals to report suspected violations to the IOAG. Whistleblowers who provide information leading to a divestiture action are entitled to 30% of the proceeds from the sale of the assets resulting from the violation. This provision is expected to enhance the enforcement of Idaho’s foreign ownership laws by encouraging public vigilance.
The new legislation also establishes exceptions to the restrictions. Foreign principals can hold a de minimis ownership interest (5% or less) in registered equities or classes of registered equities that hold interests in Idaho land, forestland, or water, mineral, or mining claims. Furthermore, foreign principals with a national security agreement with the Committee on Foreign Investment in the U.S. (CFIUS) are exempt from the restrictions, provided they maintain the agreement.
In addition to amending § 55-103, H356 enacts a new section to the state’s code (§ 55-115) that restricts foreign adversaries from purchasing or leasing land within specified coordinates near military bases or installations in Idaho. This provision aims to protect critical infrastructure and national security interests.
The enactment of H356 and S1149 marks a significant step in Idaho’s efforts to safeguard its agricultural and natural resources from foreign investments that could potentially pose risks to the state’s security and economy. By strengthening its foreign ownership laws and providing clear enforcement mechanisms, Idaho is taking proactive measures to protect its critical assets and ensure the long-term sustainability of its agricultural and natural resource sectors.