S.985 - Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025; PROTECT USA Act of 2025 (119th Congress)
Summary
The "PROTECT USA Act of 2025" aims to shield U.S. entities integral to national interests from foreign sustainability regulations, particularly the European Union's Corporate Sustainability Due Diligence Directive. It prohibits these entities from complying with such regulations, defining 'entities integral to the national interests' broadly to include those involved in extraction, manufacturing, and defense. The bill includes provisions for hardship relief and protection against adverse actions for non-compliance.
Expected Effects
The bill's enactment would likely lead to reduced compliance costs for U.S. companies operating internationally, particularly in sectors like energy, mining, and manufacturing. This could also strain relationships with countries that have stricter sustainability regulations, potentially impacting international trade and cooperation on environmental issues.
Potential Benefits
- Reduced Regulatory Burden: Eases compliance costs for U.S. companies.
- Protection of Key Industries: Safeguards industries deemed vital to national interests.
- Economic Stability: Aims to prevent adverse effects on employment and economic stability.
- Promotes Domestic Policy Goals: Supports U.S. economic and foreign policy objectives.
- Hardship Relief: Provides a process for companies facing particular hardship.
Potential Disadvantages
- Potential Trade Conflicts: Could strain relationships with countries enforcing sustainability regulations.
- Environmental Concerns: May hinder global efforts to address climate change and environmental protection.
- Reputational Risks: U.S. companies might face criticism for non-compliance with international standards.
- Limited Scope of Exception: The 'ordinary course of business' exception may not cover all necessary compliance activities.
- Risk of Regulatory Fragmentation: Could lead to a fragmented approach to sustainability regulations globally.
Most Disadvantaged Areas:
Constitutional Alignment
The bill's alignment with the U.S. Constitution is complex. Congress has the power to regulate commerce with foreign nations (Article I, Section 8, Clause 3). However, the bill's potential impact on international relations and environmental concerns could raise questions about its consistency with the general welfare clause of the Constitution's preamble. The bill also includes provisions that could be seen as infringing on the President's power to conduct foreign policy.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).