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.

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 expresses concern about restrictions, especially unilateral foreign actions, that impede U.S. entities' commercial activities. Such restrictions are identified as potentially harming employment, economic stability, scientific progress, and international trade, and 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, is organized under U.S. laws, and meets certain revenue or activity criteria related to raw material extraction, manufacturing, national defense, or critical minerals. The revenue criteria for raw material extraction or material transformation requires deriving at least 25% of revenue from those activities. ’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 foreign government’s 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 or regulations. The Corporate Sustainability Due Diligence Directive adopted by the European Union, along with its successors and precursors, is specifically included as a 'foreign sustainability due diligence regulation'.

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 rationale and any conditions. The President's decision will consider factors such as the 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. Foreign court judgments against such entities related to these regulations are not recognized in U.S. courts unless otherwise provided by an Act of Congress. The President is authorized to 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 equitable relief, punitive damages, attorney fees, and compensatory damages. Violators of this section or related regulations are subject to civil penalties up to $1,000,000. The President may deem violators ineligible for federal awards or contracts for up to three years.

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PROTECT USA Act of 2025

Last updated: 3/12/2025 · Introduced: 3/12/2025

Author: Bill Hagerty (R-TN)

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 EU'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 foreign court judgments against these entities related to foreign sustainability due diligence regulations, and authorizes the President to protect them from adverse actions.
Entities violating the prohibition against adverse actions may face civil penalties, ineligibility for federal contracts, and are eligible for relief through civil actions in federal court.

119th Congressin committeeOfficial page

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