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Congress·In Committee·S. 985

Sen. Hagerty Introduces PROTECT USA Act to Block Foreign Environmental Rules for American Companies

PROTECT USA Act of 2025

about 1 year ago·View on Congress.gov

Legislative Progress

Senate
House
President
Law

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.

    From policy text

    “no entity integral to the national interests of the United States may comply with any foreign sustainability due diligence regulation”
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  • 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.

    From policy text

    “does business with any part of the Federal Government, including Federal contract awards or leases”
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  • 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.

    From policy text

    “Restrictions, particularly restrictions adopted unilaterally by foreign countries that are substantially different from restrictions applied by the United States, that unreasonably hinder the ability of entities integral to the national interests of the United States to pursue their commercial activities can have serious adverse effects on employment, economic stability, scientific progress, and international trade”
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  • 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.

    From policy text

    “No judgment by a foreign court brought against an entity integral to the national interests of the United States in relation to any foreign sustainability due diligence regulation shall be recognized in the courts of the United States or of the States”
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  • 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.

    From policy text

    “Any entity integral to the national interests of the United States that believes it will experience particular hardship in connection with the prohibition described in subsection (a) may petition the President for an exemption from such prohibition”
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Economy FinanceEnergy EnvironmentNational Security Foreign Policy

Impact Analysis

Personal Impact

Scores: 1 = low, 5 = highSentiment: -5 to +5 (net benefit)

Milestones

2 milestones2 actions
Mar 12, 2025Senate

Read twice and referred to the Committee on Foreign Relations.

Mar 12, 2025

Introduced in Senate

Related Bills

1 bill
H.R. 4279Related bill

PROTECT USA Act of 2025

Jul 2 — Referred to the Committee on Energy and Commerce, and in addition to the Committee on the Judiciary, 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.

Source Information

Document Type

Congressional Bill

Official Title

PROTECT USA Act of 2025

Bill NumberS 985
Congress119th Congress
ChamberSenate
Latest ActionRead twice and referred to the Committee on Foreign Relations.

Sponsor

Cosponsors

(1)
R: 1

Analysis generated by AI. Always verify with official sources.