PROTECT USA Act of 2025

Key Points

• The bill would ban many American companies from following 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 similar regulations from other countries.
• The ban covers a very broad set of companies: any business that works with the federal government, gets at least 25% of its revenue from extractive industries (farming, fossil fuels, mining), has a manufacturing classification, or is involved in defense production or critical minerals.
• Congress argues that foreign environmental and social regulations could hurt American jobs, the economy, and access to critical materials. The bill frames foreign sustainability rules as an overreach that interferes with U.S. commercial interests.
• U.S. courts would be barred from enforcing any foreign court judgments related to sustainability regulations against covered companies. Anyone who takes adverse action against a company for following this U.S. law could face up to $1 million in penalties and lose eligibility for federal contracts.
• Companies facing major hardship from the ban can petition the President for an exemption, which must be decided within 30 days. The President weighs factors like impacts on local economies, value chains for essential products, and whether denial would trap companies in foreign jurisdictions.