PROTECT USA Act of 2026

This bill prohibits U.S. entities that are integral to national interests from complying with foreign sustainability due diligence regulations, such as the European Union's Corporate Sustainability Due Diligence Directive, and establishes related protections and enforcement mechanisms.

Sec. 3, Definitions: Defines "entity integral to the national interests of the United States" as a business entity organized under U.S. law with substantial U.S. operations, or one identified by the President. Defines "foreign sustainability due diligence regulation" as any foreign law requiring assessment, action, or reporting on environmental or social impacts, excluding laws substantively similar to U.S. statutes. Explicitly includes the EU's Corporate Sustainability Due Diligence Directive and its successors or precursors.

Sec. 4, Prohibition on compliance with foreign sustainability due diligence regulations: Prohibits covered entities from complying with such regulations, except for actions required by U.S. law or ordinary business activities like responding to consumer or investor requests. Allows entities to petition the President for a hardship exemption, which must be granted unless the President denies it within 30 days with a written explanation, considering factors like effects on domestic supply chains, local employment, U.S. interests, and divestment needs.

Sec. 5, Prohibition against adverse action for compliance with this Act: Prohibits any person from taking adverse action against a covered entity for actions related to foreign sustainability due diligence regulations. Bars U.S. courts from recognizing foreign judgments against such entities for those regulations unless Congress provides otherwise. Requires the President to take public interest actions to protect covered entities from adverse actions, considering impacts on U.S. consumers, businesses, economic/energy/environmental security, and foreign relations. Violators face civil penalties up to $1,000,000.