What does Preamble of PROTECT USA Act of 2025 do?

This bill aims to prohibit entities deemed integral to the national interests of the United States from participating in foreign sustainability due diligence regulations. The bill specifically mentions the Corporate Sustainability Due Diligence Directive of the European Union as an example of such a regulation. The bill was introduced by Mr. Fitzgerald and referred to the Committee on Energy and Commerce and the Committee on the Judiciary.

What does SHORT TITLE. of PROTECT USA Act of 2025 do?

This bill is formally titled the ``Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025'' or the ``PROTECT USA Act of 2025''.

What does FINDINGS. of PROTECT USA Act of 2025 do?

This section outlines findings related to international commerce and its importance to U.S. policy. It recognizes the significant contributions of extractive and manufacturing sectors to both the U.S. and global economies. Access to supplies and materials from these sectors is deemed critical for economic development and human progress. The section identifies potential adverse effects of restrictions on U.S. entities, particularly those acting unilaterally by foreign countries. These restrictions can negatively impact employment, economic stability, scientific progress, and international trade, potentially hindering policy goals.

What does DEFINITIONS. of PROTECT USA Act of 2025 do?

This section defines key terms used within the Act. An 'entity integral to the national interests of the United States' is defined as a business entity that does business with the Federal Government, meets certain revenue and industry criteria related to raw material extraction and manufacturing, or is identified as such by the President. The revenue criteria for such an entity includes deriving at least 25% of revenue from activities related to the extraction or production of raw materials, or from the mechanical transformation of materials. The term 'critical mineral' includes minerals listed in the Energy Act of 2020 and fuel minerals, including fossil fuels. A 'foreign sustainability due diligence regulation' is defined as a law requiring assessments, actions, and reporting related to environmental or social impacts. Regulations are excluded from this definition if they are substantially similar to laws adopted by Congress. The Corporate Sustainability Due Diligence Directive adopted by the European Union, and related directives, are specifically included as 'foreign sustainability due diligence regulations'.

What does PROHIBITION ON COMPLIANCE WITH FOREIGN SUSTAINABILITY DUE of PROTECT USA Act of 2025 do?

This section prohibits entities integral to the national interests of the United States from complying with foreign sustainability due diligence regulations. An exception exists for actions required to comply with U.S. statutes or undertaken in the ordinary course of business. Entities facing hardship due to the prohibition can petition the President for an exemption. The President must decide on a petition within 30 days, providing a written decision with a basis and any conditions. The President's decision will consider factors like impact on domestic value chains, the U.S. economy, and the entity's ability to divest from businesses subject to foreign regulations.

What does PROHIBITION AGAINST ADVERSE ACTION FOR COMPLIANCE WITH THIS of PROTECT USA Act of 2025 do?

This section prohibits adverse actions against entities integral to the national interests of the United States for actions or inactions related to foreign sustainability due diligence regulations. Judgments from foreign courts related to foreign sustainability due diligence regulations are not recognized in U.S. courts unless otherwise provided by an Act of Congress. The President can take actions deemed in the public interest to protect these entities from adverse actions, considering impacts on consumers, businesses, economic security, and foreign relations. Entities aggrieved by a violation of the prohibition against adverse action can bring a civil action in federal court. Successful plaintiffs in civil actions may receive various forms of relief, including writs of mandamus, punitive damages, attorney fees, and compensatory damages. Violators of this section are subject to civil penalties up to $1,000,000 and potential ineligibility for federal contracts or awards.

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PROTECT USA Act of 2025

Last updated: 7/2/2025 · Introduced: 7/2/2025

Author: Scott Fitzgerald (R-WI)

TL;DR (AI)

The PROTECT USA Act of 2025 prohibits U.S. entities deemed integral to national interests from complying with foreign sustainability due diligence regulations, such as the European Union's Corporate Sustainability Due Diligence Directive, unless required by U.S. law or part of ordinary business operations.
The bill prevents U.S. courts from recognizing judgments from foreign courts related to foreign sustainability due diligence regulations, protecting U.S. entities from adverse actions resulting from such regulations.
Entities integral to national interests, defined by criteria including federal government business, revenue thresholds related to raw material extraction/manufacturing, or presidential designation, are protected from adverse actions and can petition the President for exemptions.

119th Congressin committeeS. 985(In Committee)Official page

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