PROTECT USA Act of 2026
- Sponsor
- Rep. Fitzgerald, Scott [R-WI-5]
- Committees
- Energy and Commerce Committee (primary)
- Last action
- Sep 16, 2026
Bottom line
This bill aims to shield U.S. companies from foreign sustainability regulations deemed to have extraterritorial overreach, asserting U.S. sovereignty and protecting domestic economic interests.
What it actually does
This bill prohibits U.S. entities deemed integral to national interests from complying with foreign sustainability due diligence regulations, specifically including the European Union's Corporate Sustainability Due Diligence Directive. It establishes an exception for ordinary business activities and a process for the President to grant hardship exemptions. Furthermore, it prohibits any adverse action against U.S. entities for non-compliance and prevents foreign judgments related to these regulations from being recognized in U.S. courts.
Proponents argue
Proponents argue that foreign sustainability due diligence regulations, like the EU's CSDDD, impose undue burdens and extraterritorial jurisdiction on U.S. companies, hindering their competitiveness, economic stability, and ability to contribute to national interests, particularly in critical sectors like energy and manufacturing. They contend that such regulations can impede domestic and foreign policy goals by restricting access to essential supplies and materials, and that the PROTECT USA Act is necessary to safeguard U.S. sovereignty and economic security.
Opponents contend
Opponents might argue that this bill could isolate U.S. companies from global supply chains that increasingly demand adherence to international sustainability standards, potentially harming their ability to compete in markets where such regulations are mandatory. They might also contend that it undermines efforts to promote corporate accountability for environmental and social impacts, and could strain diplomatic relations with allies like the European Union by directly challenging their regulatory authority.
The bill is concise and relatively easy to read, allowing a quick understanding of its core intent and mechanisms.
Section 1
Short Title
This section establishes the official short title of the Act as the "Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2026" or the "PROTECT USA Act of 2026." This title clearly communicates the bill's primary objective to protect U.S. entities from perceived foreign regulatory overreach.
Supporters argue
Supporters argue that a clear and assertive short title helps to frame the legislative intent and rally support for protecting U.S. businesses from foreign regulatory burdens.
Critics contend
No specific opposition is typically raised against the short title of a bill, as it is primarily an identification mechanism.
Section 2
Congressional Findings
This section outlines Congress's rationale for the bill, stating that international commerce is a fundamental concern, extractive and manufacturing sectors are vital, and maintaining access to their materials is critical. It asserts that foreign restrictions differing from U.S. ones can harm employment, economic stability, and scientific progress, and that robust U.S. energy supply is essential for advanced technologies, with foreign sustainability regimes posing risks to U.S. competitiveness.
Section 3
Key Definitions
This section defines two critical terms: "entity integral to the national interests of the United States" and "foreign sustainability due diligence regulation." The former includes U.S.-organized entities with substantial U.S. operations, or those identified by the President. The latter covers foreign laws requiring environmental/social impact assessments, actions, and reporting, explicitly including the EU's Corporate Sustainability Due Diligence Directive and its precursors/successors, but excludes regulations substantively similar to U.S. laws.
Section 4(a)
Prohibition on Compliance with Foreign Sustainability Due Diligence Regulations
This provision directly prohibits any "entity integral to the national interests of the United States" from complying with any "foreign sustainability due diligence regulation." This forms the core operative mechanism of the bill, aiming to prevent U.S. companies from adhering to specific foreign laws.
Section 4(b)
Exception for Ordinary Business Activities
This section clarifies that the prohibition on compliance does not prevent an entity from taking actions lawfully required by a U.S. statute or actions taken in the ordinary course of business, such as responding to information requests from consumers or investors. This aims to provide a carve-out for routine business practices and existing U.S. legal obligations.
Section 4(c)
Presidential Hardship Exemption Process
This section establishes a process for U.S. entities facing "particular hardship" due to the compliance prohibition to petition the President for an exemption. Petitions are generally granted unless the President denies it within 30 days, providing a written statement explaining why it's contrary to national interests and any conditions for approval. Factors for denial include inability to participate in essential value chains, adverse economic effects, and impact on the U.S.
Section 5(a)
Protection Against Adverse Actions
This section prohibits any person from taking "adverse action" against a U.S. entity for its compliance or non-compliance with a foreign sustainability due diligence regulation, as dictated by this Act. This aims to shield U.S. companies from retaliation by foreign entities or individuals.
Section 5(b)
Non-Recognition of Foreign Judgments
This section mandates that no judgment from a foreign court against a U.S. entity related to a foreign sustainability due diligence regulation shall be recognized in U.S. federal or state courts, unless explicitly provided by an Act of Congress. This aims to prevent foreign legal enforcement of these regulations within the U.S. legal system.
Section 5(c)
Presidential Enforcement and Civil Penalties
This section empowers the President to take any action in the public interest to protect U.S. entities from adverse actions related to foreign sustainability due diligence regulations, considering impacts on U.S. consumers, businesses, security, and foreign relations. It also imposes a civil penalty of up to $1,000,000 for any person violating the prohibition on adverse actions (Section 5(a)) or any regulation issued under the Act.