PROTECT USA Act of 2026
Sponsored By: Representative Fitzgerald, Scott [R-WI-5]
In Committee
Summary
Prevents U.S. companies deemed vital to national interests from following foreign sustainability due diligence rules. The bill would define which entities are covered and what counts as a foreign sustainability due diligence regulation, explicitly naming the EU Corporate Sustainability Due Diligence Directive and its successors and precursors.
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- Covered entities would be barred from complying with foreign sustainability due diligence laws, but they could petition the President for hardship exemptions. The hardship process lists factors the President must consider, including effects on domestic value chains, regional economies, and employment, and a petition denial can be issued within 30 days.
- Ordinary U.S. business activities and routine responses to information requests are carved out so normal operations can continue while the compliance ban applies to foreign rules.
- U.S. courts would not recognize foreign judgments tied to these foreign sustainability due diligence rules without congressional authorization, and the President would have enforcement authority with civil penalties capped at $1.0 million for violations or regulations issued under the bill.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
Ban on foreign sustainability rules
If enacted, the bill would bar covered U.S. entities from complying with foreign sustainability due diligence regulations. The ban would not stop actions needed to follow U.S. law or normal business tasks like answering investor or customer information requests. Covered entities could petition the President for hardship exemptions; petitions would be presumptively granted unless the President denies within 30 days with a written reason and possible conditions. The bill would also bar adverse actions against covered entities for following or not following foreign rules, prevent U.S. courts from recognizing related foreign judgments unless Congress allows it, and let the President take actions to protect covered entities. Violators could face civil penalties up to $1,000,000 per violation.
Which U.S. companies are covered
If enacted, the bill would define which U.S. business entities count as "integral to the national interests of the United States." It would cover partnerships, corporations, LLCs, and other business entities organized under State, territory, or DC law that do substantial business in the United States. The President could also designate other businesses as covered. The bill would also define what counts as a "foreign sustainability due diligence regulation," including foreign laws that require assessing harms, taking action, and reporting. The definition would explicitly include the EU Corporate Sustainability Due Diligence Directive and similar successor or precursor rules.
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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