H.R. 4279: Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025

This bill, titled the Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025, aims to prevent companies that are deemed essential to U.S. national interests from complying with specific foreign sustainability regulations. Here’s a breakdown of the bill's main points:

Short Title

The bill may be referred to as the PROTECT USA Act of 2025.

Purpose and Findings

The bill asserts that the ability of U.S. citizens to engage in international commerce is critical. It acknowledges the importance of entities in the extractive and manufacturing sectors to the U.S. economy and warns that foreign regulations differing from U.S. rules can negatively affect employment, economic stability, and international trade.

Definitions

• Entity integral to national interests: This includes businesses that engage with the federal government, derive a significant portion of revenue from extracting or processing raw materials, or have critical national defense activities.
• Foreign sustainability due diligence regulation: Refers to laws from foreign governments requiring businesses to assess their environmental or social impacts and report on them. Specifically, it includes the EU's Corporate Sustainability Due Diligence Directive and any subsequent or predecessor directives.
• Critical mineral: Defined as minerals deemed critical to U.S. interests, including fossil fuels and other important materials.

Main Provisions

• Prohibition of Compliance: The bill prohibits essential U.S. companies from complying with foreign sustainability regulations unless they are similar to U.S. laws.
• Exceptions: Companies can continue actions required by U.S. law or conduct regular business activities.
• Hardship Relief: Companies facing hardship due to this prohibition may petition the President for an exemption, with a decision required within 30 days.

Protection from Adverse Actions

The bill protects essential companies from negative actions related to compliance with foreign regulations:

• No adverse action can be taken against these companies for non-compliance with foreign regulations.
• Judgments from foreign courts regarding these regulations won't be recognized unless specified by U.S. law.

Enforcement

• Presidential Actions: The President can take action to protect these companies from foreign regulatory impacts.
• Right to Action: Affected companies can pursue legal action against anyone violating their rights under this bill.
• Penalties: Violations may incur civil penalties up to $1 million and possible disqualification from federal contracts for up to three years.

The intention of the bill is to safeguard the interests of U.S. companies against foreign regulations that may hinder their operations or competitiveness in international markets.

Relevant Companies

None found.