House Bill Would Ban Federal Contracts for Companies That Move Overseas to Dodge U.S. Taxes
This bill is currently sitting in the House Oversight and Government Reform and Armed Services committees. Nothing has happened with this bill since February 2026, so it is considered stalled. A similar bill in the Senate is also not moving forward.
Companion bill: Senate Bill Would Ban Tax-Dodging "Inverted" Companies From Federal Contracts →This bill’s path across every version that has carried it.
Reintroduced
Reintroduced from H.R. 8727 (118th), which died when its Congress ended.
H.R. 8727 (118th) →Scores run from -100 (strongly harmful) to +100 (strongly beneficial) for each group, combining impact, certainty, scope, and duration ratings of 1-5. How impact scoring works
Federal contracting officers and procurement staff across civilian and defense agencies would need to implement new screening procedures to identify inverted domestic corporations before awarding contracts. This adds workload and complexity to an already detailed acquisition process, though it does not change their pay, benefits, or job security. The Treasury Department would also need to write new regulations for determining management and control.
Referred to the Committee on Oversight and Government Reform, and in addition to the Committee on Armed Services, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Democratic lawmakers on February 9 reintroduced the American Business for American Companies Act, which would permanently bar federal agencies from awarding contracts to 'inverted' corporations that shift their legal headquarters abroad to avoid U.S. taxes.
U.S. Senate Democratic Whip Dick Durbin, Senator Jack Reed, and Rep. Rosa DeLauro reintroduced legislation to extend the ban on federal contracts for inverted corporations by moving it into permanent law and closing loopholes used by companies to move tax addresses overseas.
The bill establishes a prohibition against federal contracts being awarded to inverted domestic corporations, defined as foreign entities that have undergone a corporate inversion after May 8, 2014. It also regulates subcontracts for projects over $10 million.
No votes recorded for this bill yet.
Document Type
Congressional Bill
Official Title
American Business for American Companies Act of 2026
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