# 119-hr-7424: American Business for American Companies Act of 2026

119-hr-7424, American Business for American Companies Act of 2026, is a 119th Congress bill sponsored by Rep. DeLauro, Rosa L. [D-CT-3] (D-CT); status introduced; PRIA reads it as touching household money (as of 2026-04-25).

- Canonical: https://policyrisk.com/legislation/119-hr-7424
- As of: 2026-04-25
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-7424
- Congress: 119
- Title: American Business for American Companies Act of 2026
- Status: introduced
- Introduced: 2026-02-09
- Sponsor: Rep. DeLauro, Rosa L. [D-CT-3] (D-CT)
- Cosponsors: 0
- Policy area: Government Operations and Politics
- Touches household money: yes
- Last recorded action: 2026-04-25

## Summary

**Blocks inverted domestic corporations from winning federal contracts.** This bill would bar foreign‑incorporated firms that qualify as inverted domestic corporations from receiving most civilian and defense contracts and would add subcontract limits, penalties, and narrow waivers for security and health needs. - Federal agencies would be prohibited from awarding contracts to foreign entities deemed inverted or to joint ventures that are more than 10% owned by such entities. For prime contracts over $10 million the agency must include a clause limiting first‑tier subcontracts to 10% of the contract value and banning tiering to evade that limit. - Contractors and subcontractors would face tougher rules and penalties. Violations can lead to termination for default and referral for suspension or debarment. - Treasury would write rules to decide when an expanded affiliated group is primarily U.S. controlled, use a 25% test for significant domestic activity, and allow agency waivers for national security or health programs with a 14‑day notice to Congress.

## Provisions PRIA read

- Limits on subcontracts for big contracts: mixed, medium. This bill would stop agencies from awarding FAR-covered contracts to foreign entities the agency determines are "inverted domestic corporations" or their subsidiaries. Joint ventures would be barred when more than 10% of the venture (by vote or value) is owned by such an inverted entity or its subs…
- Waivers for national security and health: mixed, medium. This bill would let an agency head grant a waiver to the ban only when required for national security or when necessary to run federal or federally funded health-benefit or public-health programs. Any waiver must be reported in writing within 14 days. Defense waivers would be reported to congressio…
- Which companies count as inverted: mixed, medium. This bill would say a foreign company is an "inverted domestic corporation" if, after a plan or related deal completed on or after May 8, 2014, it bought substantially all of a U.S. firm's assets and then either (A) the old U.S. owners hold more than 50% of its stock, or (B) management and control…

## Related bills

- 119-hr-5450: Continuing Appropriations and Extensions and Other Matters Act, 2026
- 119-hr-6900: American Affordability Act of 2025
- 119-hr-7481: Department of Homeland Security Appropriations Act, 2026
- 119-hr-7973: Momnibus Act
- 119-hr-6976: Duty Status Reform Act
- 119-hr-3971: Domestic Workers Bill of Rights Act

## Sources
- [119-hr-7424 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/7424)

## Related
- [119-hr-5450: Continuing Appropriations and Extensions and Other Matters Act, 2026](https://policyrisk.com/legislation/119-hr-5450)
- [119-hr-6900: American Affordability Act of 2025](https://policyrisk.com/legislation/119-hr-6900)
- [119-hr-7481: Department of Homeland Security Appropriations Act, 2026](https://policyrisk.com/legislation/119-hr-7481)
- [119-hr-7973: Momnibus Act](https://policyrisk.com/legislation/119-hr-7973)
- [119-hr-6976: Duty Status Reform Act](https://policyrisk.com/legislation/119-hr-6976)
- [119-hr-3971: Domestic Workers Bill of Rights Act](https://policyrisk.com/legislation/119-hr-3971)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-7424 (as of 2026-04-25).