PROTECT USA Act of 2026

The PROTECT USA Act of 2026 prohibits U.S. companies from complying with foreign sustainability laws, such as the European Union's Corporate Sustainability Due Diligence Directive, to protect American businesses from extraterritorial regulations. This law defines "entities integral to the national interests of the United States" as domestic corporations operating in key sectors like energy, mining, and manufacturing, and it bans these companies from taking actions required by foreign due diligence rules unless they face specific hardships. The bill includes a process where the President can grant exemptions if a company demonstrates that compliance would cause particular hardship, while also protecting these entities from legal penalties or adverse actions taken by foreign governments for non-compliance. Additionally, the Act prevents U.S. courts from recognizing judgments against American companies based on violations of these foreign sustainability regulations.