American Business for American Companies Act of 2026

The American Business for American Companies Act of 2026 prohibits U.S. government agencies from awarding contracts to "inverted domestic corporations" - foreign companies that acquired U.S. businesses after 2014 and are now controlled by former U.S. shareholders. The bill applies to contracts over $10 million (except for commercial items), banning prime contractors from subcontracting more than 10% of a contract's value to such entities or structuring subcontracts to bypass this limit. Exceptions exist for national security needs or health benefit programs, with penalties including contract termination and potential debarment for violations. The law affects government procurement across civilian and defense sectors, with definitions based on U.S. business activities (requiring at least 25% of employees, compensation, assets, or income in the U.S.) to determine which foreign entities qualify as "inverted domestic corporations."