American Business for American Companies Act of 2026

Key Points

• This bill stops the federal government from giving contracts to "inverted" companies. These are businesses that move their legal address to a foreign country, often to pay lower taxes, even though they still do most of their business or have most of their owners in the United States.
• The rule would apply to both regular government agencies and the Department of Defense. It also prevents large contractors from hiring these overseas-based companies as major subcontractors on projects worth more than $10 million.
• A company is considered "inverted" if more than 50% of its stock is still held by the original American owners or if its top bosses are still based in the U.S. and at least 25% of its employees, assets, or income are tied to America.
• Government leaders could only ignore this rule if it is necessary for national security or to keep important health programs running. If they do grant a waiver, they must tell Congress within 14 days.
• Companies that break these rules could have their government contracts canceled and might be banned from doing business with the government in the future.