What does Preamble of PROTECT USA Act of 2026 do?

This bill aims to prohibit entities 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.

What does SHORT TITLE. of PROTECT USA Act of 2026 do?

This bill is formally titled the Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2026.

What does FINDINGS. of PROTECT USA Act of 2026 do?

This section outlines findings related to international commerce and its importance to the United States. It recognizes the significant contribution of extractive and manufacturing sectors to both the U.S. and global economies. Access to supplies and materials from these sectors is deemed crucial for economic development and human progress. Restrictions hindering U.S. entities' commercial activities, especially those differing from U.S. practices, are identified as potentially harmful. Maintaining a robust U.S. energy supply is considered essential for supporting advanced technologies and mitigating risks from foreign sustainability regimes.

What does DEFINITIONS. of PROTECT USA Act of 2026 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 organized under U.S. laws and conducting substantial business operations within the U.S., or one identified as such by the President. 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 the definition of 'foreign sustainability due diligence regulation' if they are substantially similar to U.S. laws. The Corporate Sustainability Due Diligence Directive adopted by the European Union, its successors, and precursors are specifically included as 'foreign sustainability due diligence regulations'.

What does PROHIBITION ON COMPLIANCE WITH FOREIGN SUSTAINABILITY DUE of PROTECT USA Act of 2026 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, such as responding to consumer or investor information requests. Entities facing hardship due to the prohibition can petition the President for an exemption. The President generally must grant exemption petitions but can deny them within 30 days if doing so aligns with national interests. If denying a petition, the President must provide a written explanation and describe conditions that would lead to approval. The President will consider factors like the impact on domestic value chains, the economy, the United States, and the entity's ability to divest from businesses subject to foreign regulations when deciding on petitions.

What does PROHIBITION AGAINST ADVERSE ACTION FOR COMPLIANCE WITH THIS of PROTECT USA Act of 2026 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 provided for by an Act of Congress. The President is authorized to take actions deemed in the public interest to protect such entities from adverse actions. The President's determination of public interest considers the impact on consumers, businesses, economic/energy/environmental security, and foreign relations. Violations of this section or related regulations are subject to a civil penalty of up to $1,000,000.

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PROTECT USA Act of 2026

Last updated: 6/22/2026 · Introduced: 6/22/2026

Author: Scott Fitzgerald (R-WI)

TL;DR (AI)

This bill prohibits U.S. businesses deemed integral to national interests from complying with foreign sustainability due diligence regulations, such as the European Union’s Corporate Sustainability Due Diligence Directive.
The bill prevents U.S. courts from recognizing judgments from foreign courts based on foreign sustainability due diligence regulations, unless specifically authorized by U.S. law.
Entities integral to national interests can petition the President for exemptions from the compliance prohibition, with the President having the authority to grant or deny such petitions based on national interest considerations.

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

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Includes provisions on preamble, short title., and 4 more.

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