PROTECT USA Act of 2026

Key Points

• The bill would ban U.S. companies from complying with foreign laws that require them to assess and report on their environmental and social impacts. It specifically targets the EU's Corporate Sustainability Due Diligence Directive and any similar rules from foreign governments.
• The ban covers any U.S.-organized business that does substantial work in the United States, plus any company the President designates as important to national interests. This gives it a very broad reach across American industry.
• Companies can still answer questions from customers or investors and follow any existing U.S. laws. The bill also lets companies petition the President for an exemption if the ban causes them serious financial hardship.
• Foreign court judgments against American companies for not following sustainability rules would not be recognized in U.S. courts. Anyone who punishes an American company for following this law could face civil penalties of up to $1 million.
• Supporters argue that foreign sustainability regulations threaten U.S. energy supply and the growth of advanced technologies like data centers. They frame the bill as protecting American jobs and competitiveness against overreach by other countries.