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S985119th CongressWALLET

PROTECT USA Act of 2025

Sponsored By: Senator Bill Hagerty

Introduced

Summary

Prohibits U.S. companies deemed integral to national interests from complying with foreign sustainability due diligence laws. The bill would block covered entities from following laws like the European Union’s Corporate Sustainability Due Diligence Directive and sets rules for exemptions and enforcement.

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Bill Overview

Analyzed Economic Effects

3 provisions identified: 3 benefits, 0 costs, 0 mixed.

Ban on following foreign sustainability rules

If enacted, the bill would bar businesses the Act calls "integral to the national interests" from complying with foreign sustainability due diligence rules. An entity could be covered if it has federal contracts, is organized under U.S. law (or a foreign subsidiary), or meets tests like at least 25% revenue from extraction or transformation, a primary manufacturing NAICS code, defense production, or President designation. The bill defines foreign sustainability rules as those that require assessment, action, and reporting, and explicitly includes the EU Corporate Sustainability Due Diligence Directive. It also defines "critical minerals" to include the Energy Act list and fuel minerals like fossil fuels and their fractions.

President can protect covered businesses

If enacted, the bill would let the President take any action he finds in the public interest to protect covered entities from adverse actions tied to foreign sustainability rules. The President must weigh effects on consumers, economic, energy, and environmental security, and on foreign relations. Covered entities could petition the President for a hardship exemption. The President must decide in writing within 30 days and say the basis and any conditions if relief is granted.

Protections and penalties for covered businesses

If enacted, the bill would forbid anyone from taking adverse action against a covered entity for acts or omissions tied to foreign sustainability due diligence rules. U.S. courts would not recognize foreign judgments on those matters unless Congress says so. Violators could face civil penalties up to $1,000,000 and the President could bar them from federal contracts for up to three years. Covered entities could sue in U.S. court for equitable relief, compensatory and punitive damages, and attorney fees.

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Sponsors & CoSponsors

Sponsor

Bill Hagerty

TN • R

Cosponsors

  • Sen. Ricketts, Pete [R-NE]

    NE • R

    Sponsored 6/10/2025

Roll Call Votes

No roll call votes available for this bill.

View on Congress.gov
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