A federal judge has temporarily blocked enforcement of Arkansas laws prohibiting land ownership by prohibited foreign parties, concluding that they’re probably unconstitutional.
The plaintiff, owner of a cryptocurrency mine near Dewitt, Arkansas, “has presented arguments that Act 636 and Act 174 are unconstitutional and has established — at least at this stage of the litigation — that it is likely to succeed on the merits,” Christine Baker, Chief U.S. District Judge of the Eastern District of Arkansas, said in her temporary restraining order.
Act 636 is targeted at prohibited foreign parties that own agricultural land, and has been used earlier to order Syngenta to divest itself of 160 acres of land in the state. Act 174’s prohibition says “prohibited foreign-party-controlled businesses” cannot acquire any interest in any public or private real property.
"The challenged statutes represent an interference with private contract and property rights and, in the case of Act 636, carry the threat of a felony conviction and imprisonment as well," Baker wrote.
The owner of the company, Jones Eagle LLC, said he’s an immigrant from China who became a U.S. citizen.
Gov. Sarah Huckabee Sanders protested the ruling in a post on X, saying “Arkansas has the only law in the country that’s successfully kicked a Communist Chinese company off our farmland – and a judge just blocked it. Our foreign adversaries have no right to American land. We will appeal this ruling and protect our state.”
Technically, Baker has not gutted the state laws, but has temporarily stopped Arkansas from enforcing them against Jones Eagle.
“Granting the temporary restraining order will cause no appreciable harm to [the state] defendants,” she said. “At most, the Attorney General faces a delay of two weeks in taking formal legal action against Jones Eagle under Act 636 or Act 174, whereas the ongoing cloud of investigation and the constant threat of legal action have caused Jones Eagle to suffer real, ongoing harm.”
The judge also noted that the state had yet to submit “any written response to the motion for temporary restraining order and preliminary injunction.”
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