Governor Katie Hobbs vetoed a bill that aimed to prohibit the Chinese government and its entities from owning land in Arizona. In her veto letter dated June 2, 2025, she acknowledged the importance of protecting infrastructure but expressed concerns about the bill’s effectiveness and implementation. She stated that the legislation was “ineffective at counter-espionage and does not directly protect our military assets.” Furthermore, she criticized the bill for lacking clear implementation criteria, which could lead to arbitrary enforcement .

The bill, known as Senate Bill 1109, sought to ban the People’s Republic of China—including enterprises wholly owned by the Chinese government and its subdivisions—from holding a substantial interest (defined as a 30% or greater stake) in Arizona property. It passed the Arizona House of Representatives on May 7 with a 41-17 vote and received final approval from the Arizona Senate on May 28 with a 17-11 vote along party lines .

Proponents of the bill argued that it would protect Arizona’s military, commercial, and agricultural assets from foreign espionage and sabotage. However, Governor Hobbs contended that the legislation did not effectively address these concerns and could result in enforcement issues due to its vague criteria.