American Business for American Companies Act of 2026

Ban and limits on inverted companies

This bill would stop federal agencies from awarding contracts to foreign‑incorporated firms that qualify as "inverted domestic corporations." A firm would be treated as inverted if, after an acquisition completed on or after May 8, 2014, former U.S. shareholders hold more than 50% of stock or if management and control and significant business activity are primarily in the United States. "Significant domestic business" is met if at least 25% of employees, pay, assets, or income are in the U.S. For prime contracts over $10,000,000 (not exclusively commercial items), primes could not award a first‑tier subcontract worth more than 10% of the contract to these firms, and agencies could terminate contracts or refer violators for suspension or debarment. Contracts signed before enactment would be exempt, but task or delivery orders issued after enactment would be covered. Agency heads could waive the prohibition for national security or needed health program administration, and agencies would have to notify Congress in writing within 14 days of a waiver.