PROTECT USA Act of 2025
Sponsored By: Representative Fitzgerald, Scott [R-WI-5]
Introduced
Summary
Blocks certain U.S. companies deemed "integral to national interests" from complying with foreign sustainability due diligence laws like the EU Corporate Sustainability Due Diligence Directive. It would also set up legal shields, a presidential exemption process, and penalties for parties that retaliate against covered firms.
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- Businesses and producers: Companies that get at least 25% of revenue from extraction or from turning raw materials into new products, or that make defense-related goods or critical minerals, would be covered. This includes firms in agriculture, energy, mining, timber, processing, and related manufacturing.
- Workers and local communities: Covered entities can petition the President for hardship relief, and the President must decide within 30 days while weighing effects on employment and local economies.
- Legal and contracting effects: Foreign judgments tied to these foreign sustainability rules would not be recognized, covered entities could sue for damages and fees, and violators can face civil fines up to $1,000,000 and up to three years of ineligibility for federal contracts.
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Bill Overview
Analyzed Economic Effects
3 provisions identified: 1 benefits, 1 costs, 1 mixed.
30-day hardship waivers for companies
Covered companies could ask the President for a hardship waiver from the ban. The President would have 30 days to issue a written decision. Any approval could include conditions. The decision would weigh supply chains, local jobs, U.S. interests, and whether denial would block divestment.
Ban on covered companies following foreign rules
This bill would define which companies count as "integral to U.S. interests." It would also define which foreign sustainability rules count, including the EU’s Corporate Sustainability Due Diligence Directive. Covered companies would be barred from complying with those foreign rules. It would not stop actions required by U.S. law. It would not block steps taken in the ordinary course of business.
Legal shields and penalties for companies
Covered companies would be able to sue in U.S. court over unlawful adverse actions tied to foreign due‑diligence rules. Courts could order relief, pay damages and fees, and add up to $1,000,000 in punitive damages. Violators could face a civil penalty up to $1,000,000 and be barred from federal contracts for up to 3 years. U.S. courts would not enforce foreign court judgments tied to those foreign rules, unless Congress says otherwise. The President could act to protect covered companies when it serves the public interest.
Sponsors & CoSponsors
Sponsor
Fitzgerald, Scott [R-WI-5]
WI • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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