HR 4279119th CongressIn Committee

PROTECT USA Act of 2025

Introduced: Jul 2, 2025

Defense & National Security

Standard Summary

Comprehensive overview in 1-2 paragraphs

The PROTECT USA Act of 2025 (H.R. 4279) would prohibit entities the bill deems “integral to the national interests of the United States” from complying with any foreign sustainability due diligence regulation, explicitly including the European Union’s Corporate Sustainability Due Diligence Directive (CS3D) and its successors. It defines who qualifies as such an entity—primarily certain U.S. and foreign-registered firms with major involvement in extractive industries, manufacturing, arms or defense-related production, or critical minerals—and would empower the President to grant hardship exemptions and the courts to enforce penalties and civil damages for violations. The measure also restricts recognition of foreign court judgments related to these rules and authorizes broad presidential and private remedies to counter perceived foreign regulatory pressure on U.S. entities. In short, the bill seeks to insulate a broad set of U.S. businesses—especially those in energy, mining, manufacturing, and critical mineral sectors—from foreign sustainability due-diligence regimes and to provide strong legal and governmental remedies if these entities are targeted by such foreign rules.

Key Points

1Prohibition on compliance with foreign sustainability due diligence regulations for defined “entity integral to the national interests of the United States.”
2Definition of “foreign sustainability due diligence regulation” includes the EU’s Corporate Sustainability Due Diligence Directive and its successors/precursors, with an exception for U.S.-like laws adopted by Congress.
3Comprehensive eligibility criteria for “entity integral to the national interests” (revenue thresholds, sector codes, and defense/critical mineral involvement), plus a presidentially designated category.
4Hardship relief process allowing entities to petition the President for exemptions, with a 30-day decision timeline and factors such as impact on domestic value chains, employment, and national interest.
5Enforcement framework including a private right of action, civil penalties up to $1,000,000, potential three-year ineligibility for federal awards/contracts, and presidential action to protect affected entities; also limits recognition of foreign judgments in U.S. courts.

Impact Areas

Primary group/area affected- Entities “integral to the national interests” (as defined by the bill), including:- Firms in extractive sectors (mining, fossil fuels, biomass) and those processing raw materials.- Manufacturers with primary NAICS codes tied to manufacturing or material transformation.- Entities involved in arms/defense production or critical minerals.- U.S. or foreign subsidiaries meeting the revenue thresholds (25% of revenue from described activities) or other criteria listed.- U.S. federal contractors and entities doing business with the federal government.Secondary group/area affected- Foreign sustainability due diligence regimes and foreign governments (e.g., EU) whose regulations would be affected or targeted.- U.S. suppliers, customers, and supply chains relying on import/export of materials and products tied to critical minerals or defense-related industries.- U.S. courts and businesses considering cross-border regulatory compliance or potential conflicts with foreign laws.Additional impacts- Legal and regulatory uncertainty for companies with mixed or international operations, given the potential for hardship exemptions and private lawsuits.- Potential shifts in international trade dynamics and foreign-policy considerations due to actions the President may take to protect entities.- Compliance costs and strategic business decisions around whether to engage with or avoid foreign sustainability regimes, particularly for sectors identified as “integral” to national interests.

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