PROTECT USA Act of 2025

This bill would bar certain U.S.-based companies that are seen as important to the country’s interests from following foreign “sustainability due diligence” rules, like the European Union’s Corporate Sustainability Due Diligence Directive. It says these companies should not be pushed by other countries’ rules in ways that could harm U.S. jobs, energy and resource access, or trade. There is an exception for actions needed to follow U.S. law or normal business practices. Companies can ask the President for an exemption if not complying would cause unusual hardship; a written decision is required within 30 days, considering impacts on U.S. supply chains, local economies, and national interests .

The bill also protects these companies from being punished for not following foreign sustainability rules. U.S. courts would not recognize foreign court judgments tied to those rules unless Congress allows it. The President can take actions to protect these companies if it’s in the public interest, and companies can sue if someone takes adverse action against them. Violators could face civil penalties up to $1,000,000 and be blocked from federal contracts for up to three years .

Key points

• Who is affected: U.S. companies considered essential to national interests, including those in resource and manufacturing supply chains .
• What changes: These companies are generally barred from complying with foreign sustainability due diligence rules; limited exceptions apply for U.S. law and ordinary business. An exemption process is available through the President .
• Enforcement and remedies: Protection from adverse actions, no recognition of related foreign judgments, presidential actions to protect companies, a right to sue, and penalties for violators up to $1,000,000 plus possible temporary ban from federal contracts .