Sponsor
Scott Fitzgerald
Representative · R-WI
Representative · R-WI
Official title: To prohibit entities integral to the national interests of the United States from participating in any foreign sustainability due diligence regulation, including the Corporate Sustainability Due Diligence Directive of the European Union, and for other purposes.
Introduced June 22, 2026 by Scott Fitzgerald · Last progress June 22, 2026
The bill strengthens protection for U.S. extractive and strategically important firms and speeds exemptions from foreign sustainability rules—supporting jobs and energy/infrastructure resilience—but raises significant risks of higher consumer costs, trade retaliation, regulatory uncertainty, and setbacks to environmental and global sustainability goals.
Domestic extractive, energy, timber, manufacturing firms and their workers gain stronger U.S. policy support and protection from foreign sustainability rules, helping preserve jobs and local economies.
Energy and utility companies and communities reliant on them receive support for a robust domestic energy supply, reducing the risk of infrastructure disruption and helping attract investment for data centers and advanced technologies.
U.S.-organized businesses (especially exporters and multinationals) get clearer notice about which foreign sustainability rules are treated as 'foreign,' reducing some legal uncertainty for international operations.
Communities and the climate risk increased pollution and slower emissions reductions because the bill prioritizes expanded access to extractive resources and may divert focus from the clean energy transition.
Consumers, taxpayers, and many U.S. firms could face higher costs, lost contracts, or market exclusion if foreign governments retaliate or enforce incompatible sustainability rules, creating trade tensions and revenue risks.
Businesses nationwide face increased regulatory uncertainty because the President has broad unilateral authority to designate entities 'integral' or act 'as deemed in the public interest,' producing sudden obligations or policy shifts.
Based on analysis of 5 sections of legislative text.
Bars designated U.S. businesses from complying with specified foreign sustainability due diligence laws, shields them from related foreign judgments, and creates a presidential exemption process.
Prohibits certain U.S. businesses the bill calls “entities integral to the national interests of the United States” from complying with foreign sustainability due diligence laws (for example, the EU Corporate Sustainability Due Diligence Directive). It bars adverse actions and foreign-court judgments tied to compliance with those foreign rules, creates a presidential exemption/petition process with a 30‑day denial window, directs the President to take protective actions as needed, and authorizes civil penalties for violations of the new prohibitions.