HR 9385: PROTECT USA Act of 2026

HR 9385 in plain English: This bill establishes civil penalties for violations of its provisions, with penalties of up to $1,000,000 per violation. The full scope of the bill's requirements and enforcement mechanisms are not detailed in the available source material.

Stated purpose

The bill aims to prohibit U.S. companies considered important to national interests from complying with foreign sustainability due diligence laws, such as the European Union's Corporate Sustainability Due Diligence Directive, which require businesses to assess and report on the environmental and social impacts of their operations.

Key points

• Imposes civil penalties of up to $1,000,000 for violations of the bill's provisions.

Arguments supporters make

• Foreign rules like the EU's directive unfairly extend their reach over American companies and force U.S. businesses to follow standards that U.S. Congress never approved, undermining American sovereignty.
• Compliance with complex foreign sustainability mandates raises costs and burdens on U.S. energy, mining, and manufacturing companies, threatening jobs, competitiveness, and the supply of critical materials.
• Protecting key U.S. industries from unilateral foreign regulations helps ensure stable energy supplies and supports the infrastructure needed for advanced technologies like data centers.

Arguments opponents make

• U.S. companies that do business in the EU may still be legally required to meet EU rules within EU territory, so this law could put them in an impossible conflict between U.S. law and foreign law, harming their ability to operate abroad.
• Blocking sustainability due diligence could expose U.S. companies' supply chains to unchecked environmental and social harms, creating reputational and legal risks and ignoring the concerns of investors and trading partners.
• The bill's broad definition of covered companies and foreign regulations could sweep in a wide range of legitimate international business standards, isolating U.S. firms from global norms and trading relationships.

Tradeoffs

Shielding U.S. companies from foreign regulatory burdens may protect their competitiveness and sovereignty at home, but could limit their access to foreign markets that require sustainability compliance and create legal conflicts for companies operating internationally.

Current status in Congress: In committee.

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