HR4279-119

1. Short title This Act may be cited as the Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025 or the PROTECT USA Act of 2025.

2. Findings Congress makes the following findings: The ability of citizens of the United States to engage in international commerce is a fundamental concern of the policy of the United States. Entities in the extractive and manufacturing sectors contribute significantly to the prosperity of the United States and the growth of the world economy. Maintaining and, in some cases, increasing access to certain supplies and materials from the extractive sector, including agriculture, energy, mining, and timber, and access to materials from the manufacturing sector, are critically important for promoting economic development and human progress in the United States and around the world. Restrictions, particularly restrictions adopted unilaterally by foreign countries that are substantially different from restrictions applied by the United States, that unreasonably hinder the ability of entities integral to the national interests of the United States to pursue their commercial activities can have serious adverse effects on employment, economic stability, scientific progress, and international trade, with the potential to impede domestic and foreign policy goals.

3. Definitions In this Act: The term entity integral to the national interests of the United States means any partnership, corporation, limited liability company, or other business entity that— does business with any part of the Federal Government, including Federal contract awards or leases; is organized under the laws of any State or territory within the United States, or of the District of Columbia, or under any Act of Congress or a foreign subsidiary of any such entity that— derives not less than 25 percent of its revenue from activities related to the extraction or production of raw materials from the earth, including— cultivating biomass (whether or not for human consumption); exploring or producing fossil fuels; mining; and processing any material derived from an activity described in subclause (I), (II), or (III) for human use or benefit; has a primary North American Industry Classification System code or foreign equivalent associated with the manufacturing sector; derives not less than 25 percent of its revenue from activities related to the mechanical, physical, or chemical transformation of materials, substances, or components into new products; and is engaged in— the production of arms or other products integral to the national defense of the United States; or the production, mining, or processing of any critical mineral; or the President otherwise identifies as integral to the national interests of the United States. The term critical mineral includes— any mineral identified as a critical mineral in section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)); or any fuel mineral, including fossil fuels and any fraction, distillate, or other by-product of a fuel mineral. Except as provided in subparagraph (B), the term foreign sustainability due diligence regulation means any law, regulation, or other legal instrument adopted by a foreign government that requires any person to undertake— an assessment of the environmental or social impacts of its operations or value chain; action to address any impacts identified in the assessment described in clause (i); and reporting of the impacts and actions described in clauses (i) and (ii). The term foreign sustainability due diligence regulation does not apply to any law, regulation, or other legal instrument that is substantively similar to a law, regulation, or other legal instrument that has been adopted or approved by an Act of Congress. The term foreign sustainability due diligence regulation includes— the entirety of the Corporate Sustainability Due Diligence Directive adopted by the European Union; any successor directive adopted by the European Union or any member country of the European Union; and any precursor directive adopted by any member country of the European Union.

4. Prohibition on compliance with foreign sustainability due diligence regulations Except as provided in subsection (b), no entity integral to the national interests of the United States may comply with any foreign sustainability due diligence regulation. Subsection (a) does not prohibit an entity from undertaking actions that it may lawfully take— to comply with a statute of the United States; or in the ordinary course of business. Any entity integral to the national interests of the United States that believes it will experience particular hardship in connection with the prohibition described in subsection (a) may petition the President for an exemption from such prohibition. Not later than 30 days after the date on which the President receives a petition from an entity submitted under paragraph (1), the President shall provide a written decision to the entity that— grants or denies the requested exemption; contains a statement setting forth the basis for the decision; and in the case of a granted exemption, describes any condition that the exemption is subject to, as determined by the President. In making the decision required by paragraph (2), the President shall consider— the extent to which the denial of a petition submitted under paragraph (1) by an entity would result in the inability of the entity to participate in value chains associated with products essential for domestic use in the United States; possible adverse effects on the economy in any locality or region of the United States, including adverse effects on employment; the degree to which granting the petition would impact, directly or indirectly, the United States; and the extent to which denial of the petition would prevent the entity from divesting in a business formed under the laws of a jurisdiction subject to a foreign sustainability due diligence regulation.