IndianaSB 256Second Regular Session 124th General Assembly (2026)SenateWALLET

Foreign agent registration, foreign terrorist organizations, and foreign adversaries.

Sponsored By: Chris Garten (Republican)

Signed by Governor

Summary

Provides that contracts entered into, amended, or renewed by a qualified entity for the provision of a technological product or service must contain a provision requiring the contractor to confirm that the contractor and any subcontractors working under the contract for the contractor are not prohibited persons. Requires certain persons acting on behalf of a hostile foreign country to register with the attorney general. Establishes a procedure to deny state benefits to persons who aid a foreign terrorist organization. Requires a state educational institution to meet certain requirements regarding the admission and enrollment of a foreign student into qualifying programs at state educational institutions. Requires an approved postsecondary educational institution to provide to the commission for higher education the number of foreign students currently enrolled in a qualifying program and the number of foreign students enrolled in a qualifying program for each academic year for the preceding 10 years. Prohibits certain individuals and business entities from acquiring real property located in Indiana. Provides that an agreement or cooperative agreement between a unit and a prohibited person is contrary to public policy and is void and unenforceable. Repeals existing statutes regarding foreign ownership of agricultural land.

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Bill Overview

Analyzed Economic Effects

12 provisions identified: 2 benefits, 9 costs, 1 mixed.

Prohibited landowners risk forced sales and penalties

Beginning July 1, 2026, prohibited owners holding property on that date cannot act as foreign-adversary agents. For these existing owners, forced divestiture requires clear and convincing evidence of agency; owners then must show ownership poses no specified risk. The owner’s burden is to show this is more likely than not, and courts must issue written findings before ordering divestiture. For covered land violations, the attorney general must pursue receivership and sale when received information leads to a belief that a violation occurred. Starting receivership makes the prohibited person personally liable for 10% of the property’s market value; the owner receives no sale proceeds. Sale proceeds pay lienholders by priority and costs, including attorney and expert fees; the balance goes to the state general fund.

Some visa holders keep homebuying access

Beginning July 1, 2026, a limited exception lets otherwise prohibited individuals with valid, unexpired nonimmigrant visas buy Indiana property. The visa must remain valid for more than 12 months after purchase. The property must be zoned for single-family residential use and cover no more than one-half acre. The buyer must also have been determined not to be an agent of a foreign adversary.

Foreign students face funding and disclosure limits

Covered foreign students admitted after a security review must attest before enrollment that they have not accepted foreign-adversary funding. They must also promise not to accept such direct or indirect support in the future. State colleges must immediately unenroll students when they learn the students accepted that support. Foreign students in covered programs must immediately report specified changes involving family, foreign-government, or military ties. They must also immediately report any contact with an agent of a foreign adversary.

Some foreign students face admission checks

Beginning August 15, 2026, Indiana state colleges must review covered foreign students for foreign influence and research security before admission. Covered students are foreign-adversary citizens who are not U.S. citizens, lawful permanent residents, or people granted U.S. asylum. Covered fields include chemical, electrical, industrial, and mechanical engineering; artificial intelligence; computer science; microbiology; and virology. Reviews examine affiliations, outside funding, agreements, family and political ties, and work or service history; schools must reject agents and students withholding required information. The higher education commissioner can add fields, with at least six months’ notice to affected schools before the next academic term. Schools must report foreign-student enrollment counts and a ten-year enrollment history by November 1, 2026; some reporting requirements expire July 1, 2027.

Property lenders and third parties gain protections

Beginning July 1, 2026, non-prohibited people and businesses face no civil or criminal liability for failing to check another party’s status. Forced divestiture generally preserves genuine mortgages, liens, and other property interests. However, interests created after an effective notice of the pending property case become void when a court orders a sale. Lienholders can bid at the receivership sale using the debt owed to them, up to that amount.

Designated terrorist affiliates lose state benefits

Beginning July 1, 2026, the governor’s designation of a foreign terrorist organization affiliate triggers bans on state support. Designated people and entities cannot receive state funding, employment, tax benefits, other state benefits or privileges, or state contracts. State-funded universities, community colleges, school districts, and other recipients cannot knowingly give them financial benefits. These include grants, contracts, loans, tax credits, and tax exemptions. The designation process includes attorney general investigation, notice, and an opportunity to respond.

Foreign political agents must register and pay

Beginning January 1, 2027, covered foreign agents doing political work in Indiana must register with the attorney general. Coverage requires acting for a covered foreign principal, receiving its direct or indirect financing, and doing political work on its behalf. Agents must file before starting or within 30 calendar days, and report material changes within 90 calendar days. Filings disclose identity, business activities, the foreign principal, and their relationship. The initial filing costs $500, each supplemental filing costs $100, and the attorney general can set additional fees.

Foreign-agent filing violations bring civil penalties

For violations after December 31, 2026, foreign agents and foreign-supported political groups face civil penalties for covered filing failures. These include missing filings, materially incorrect statements made without reasonable care, and failing to correct or report after an attorney general request. The attorney general can seek a penalty up to $500, or up to $10,000 per intentional or repeat violation. The attorney general can also seek court orders and lawsuit costs; collected penalties go to the state general fund.

Foreign-backed political groups face yearly filings

For political activity after December 31, 2026, covered foreign-supported political groups must file annually before February 1. Coverage includes groups receiving money or other value from a covered foreign principal or agent within the previous three calendar years. Support from genuine arm’s-length business deals and support below 10% of annual revenue are excluded. Filings disclose organizational ties, foreign support, and the previous year’s political spending; material changes must be reported within 90 calendar days. Beginning January 1, 2027, the initial filing costs $500.

Local governments lose foreign-linked agreement options

Beginning July 1, 2026, Indiana local governments cannot enter sister-city or other cooperative agreements with prohibited persons. Any such agreement is void and cannot be enforced.

Foreign-linked technology vendors face contract bans

Beginning July 1, 2026, Indiana state and local governments cannot buy covered technology from prohibited foreign-adversary-linked vendors. Covered technology includes information systems, surveillance, lidar, and artificial intelligence, but not drones. Foreign adversaries include China, Russia, North Korea, Iran, and other countries listed federally or designated by the governor. New contracts after June 30, 2026, must affirm that contractors and subcontractors are not prohibited persons; breaking this promise is a material breach. Existing contracts need this clause when amended or renewed after June 30, 2027.

Foreign-linked buyers face new land limits

Beginning July 1, 2026, Indiana replaces its prior foreign-business agricultural-land law with broader restrictions for prohibited foreign-adversary-linked persons and businesses. The law bars covered acquisitions of property, mineral rights, water or river-related rights, and new leases. Covered ties include citizenship, residence, business location, or control linked to a foreign adversary, subject to specified exemptions. Business control includes at least 51% beneficial ownership, officer or director roles, or power over management or policies. The law preserves an acquisition exception for property used only for residential purposes and permits residential leases lasting 24 months or less.

Sponsors & Cosponsors

Sponsor

  • Chris Garten

    Republican • Senate

Cosponsors

  • Aaron Freeman

    Republican • Senate

  • Andrew Ireland

    Republican • House

  • Blake Doriot

    Republican • Senate

  • Chris Jeter

    Republican • House

  • Chris Judy

    Republican • House

  • Daryl Schmitt

    Republican • Senate

  • Eric Koch

    Republican • Senate

  • Gary Byrne

    Republican • Senate

  • Justin Busch

    Republican • Senate

  • Liz Brown

    Republican • Senate

  • Matt Commons

    Republican • House

  • Randy Maxwell

    Republican • Senate

  • Ron Alting

    Republican • Senate

  • Scott Baldwin

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 268 • No: 14

House vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the House

Yes: 82 • No: 13

Senate vote • 2/27/2026

Rules Suspended. Conference Committee Report 1: adopted by the Senate

Yes: 49 • No: 0

House vote • 2/19/2026

Third reading: passed

Yes: 93 • No: 1

Senate vote • 1/26/2026

Third reading: passed

Yes: 44 • No: 0

Actions Timeline

  1. Public Law 131

    3/5/2026Senate
  2. Signed by the Governor

    3/5/2026Senate
  3. CCR # 1 filed in the House

    2/27/2026House
  4. CCR # 1 filed in the Senate

    2/27/2026Senate
  5. Rules Suspended. Conference Committee Report 1: adopted by the House; Roll Call 412: yeas 82, nays 13

    2/27/2026House
  6. Rules Suspended. Conference Committee Report 1: adopted by the Senate; Roll Call 316: yeas 49, nays 0

    2/27/2026Senate
  7. Signed by the Speaker

    2/27/2026House
  8. Senator Baldwin added as conferee

    2/27/2026Senate
  9. Senator Taylor G removed as conferee

    2/27/2026Senate
  10. Senator Baldwin removed as advisor

    2/27/2026Senate
  11. Senator Alting added as coauthor

    2/27/2026Senate
  12. Signed by the President Pro Tempore

    2/27/2026Senate
  13. Signed by the President of the Senate

    2/27/2026Senate
  14. Representative Judy removed as advisor

    2/26/2026House
  15. Representative Garcia Wilburn removed as conferee

    2/26/2026House
  16. Representative Judy added as conferee

    2/26/2026House
  17. Senate advisors appointed: Randolph Lonnie M, Baldwin, Koch

    2/25/2026Senate
  18. Senate conferees appointed: Garten, Taylor G

    2/25/2026Senate
  19. Senator Brown L added as coauthor

    2/25/2026Senate
  20. Senate dissented from House amendments

    2/24/2026Senate
  21. Motion to dissent filed

    2/24/2026Senate
  22. House advisors appointed: Judy, Jeter, Ireland, Burton

    2/24/2026House
  23. House conferees appointed: Commons, Garcia Wilburn

    2/24/2026House
  24. Senator Maxwell added as coauthor

    2/24/2026Senate
  25. Returned to the Senate with amendments

    2/20/2026House

Bill Text

  • Engrossed Senate Bill (H)

  • Engrossed Senate Bill (S)

  • Enrolled Senate Bill (S)

  • Introduced Senate Bill (S)

  • Senate Bill (H)

  • Senate Bill (S)

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