S. 985 · Where this bill is now
In committee
Introduced in the Senate, Mar 12, 2025
What this bill does
In plain words · AI-written from the official summaryBars U.S. companies from foreign sustainability rules
This bill prevents certain U.S. businesses from following foreign laws that require them to report on the environmental and social impacts of their operations. It specifically targets regulations like those from the European Union that ask companies to assess and address impacts across their supply chains. The law covers federal contractors, manufacturers, resource extraction companies, and defense-related businesses.
How it affects you
If you work for or own a company that does business with the federal government, manufactures goods, extracts raw materials, or produces defense products, this could affect how your company operates internationally. The bill protects these companies from penalties if they don't follow certain foreign sustainability reporting rules, though it's unclear how this might change prices, product availability, or environmental practices for everyday consumers.
Read the official summary (Introduced in Senate, Mar 12, 2025)
Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025 or the PROTECT USA Act of 2025
This bill prohibits businesses integral to U.S. national interests from complying with certain foreign sustainability regulations, including the European Union's Corporate Sustainability Due Diligence Directive.
Specifically, any business entity integral to U.S. national interests is barred from complying with any foreign sustainability due diligence regulation (i.e., any foreign law, regulation, or legal instrument that requires a person to assess the environmental or social impacts of its operations or value chain, take actions to address those impacts, and report on those impacts and actions).
Entities covered by this bill include those that do business with any part of the federal government, including by way of federal contracts or leases. Other covered entities include those businesses organized under the laws of the United States that (1) derive at least 25% of their revenue from activities related to the extraction or production of raw materials from the earth, (2) are primarily involved in manufacturing, or (3) produce arms or other products integral to U.S. national defense.
The bill prohibits adverse action against entities that comply with this prohibition and requires the President to take action in the public interest to protect such entities from an adverse action. Affected entities may bring a civil action against persons who have taken an adverse action. Penalties for violators include up to a $1 million fine and three years of ineligibility for federal awards or contracts.
Written by AI (Claude) using only the official summary by the Congressional Research Service, the Library of Congress’s nonpartisan research staff. It can miss nuance, so check the official summary and the bill text for details.
1st SessionS. 985
A BILL
PROTECT USA Act of 2025
Sponsor: Sen. Bill Hagerty (R-TN) · Introduced Mar 12, 2025 · International Affairs · 1 version of the text
Sources: Congress.gov actions and votes · bill text from GovInfo · latest official action Mar 12, 2025: “Read twice and referred to the Committee on Foreign Relations.”