S. 985 — PROTECT USA Act of 2025

This section states congressional findings that (1) the ability of U.S. citizens to engage in international commerce is a fundamental U.S. policy concern; (2) entities in the extractive and manufacturing sectors contribute significantly to U.S. prosperity and world economic growth; (3) maintaining or increasing access to supplies from the extractive sector—including agriculture, energy, mining, and timber—and to manufacturing materials is critically important for economic development and human progress in the United States and worldwide; and (4) unilateral foreign restrictions substantially different from those of the United States that hinder such U.S. entities can adversely affect employment, economic stability, scientific progress, and international trade.

This section defines three terms for purposes of the Act. (1) "Entity integral to the national interests of the United States" means any U.S.-organized business entity (or foreign subsidiary) that does business with the federal government; derives at least 25% of revenue from extraction or production of raw materials (e.g., biomass, fossil fuels, mining), manufacturing, or critical mineral activities; or is otherwise identified by the President. (2) "Critical mineral" includes any mineral designated as critical under section 7002(a) of the Energy Act of 2020 (30 U.S.C. 1606(a)) or any fuel mineral (including fossil fuels and byproducts), expanding beyond the existing statutory exclusion of fuel minerals. (3) "Foreign sustainability due diligence regulation" means a foreign law requiring assessment, mitigation, and reporting of environmental or social impacts (except if substantively similar to U.S. law), expressly including the EU Corporate Sustainability Due Diligence Directive and successors or precursors.

This section prohibits any entity integral to the national interests of the United States from complying with foreign sustainability due diligence regulations (i.e., foreign laws requiring due diligence on environmental, human rights, or other sustainability issues in supply chains), except for actions taken to comply with a U.S. statute or in the ordinary course of business. It establishes a hardship relief process allowing such entities to petition the President for an exemption, which the President must grant or deny in writing within 30 days—including a statement of basis and any conditions—with consideration of factors such as (1) impacts on participation in essential domestic value chains, (2) adverse effects on U.S. localities, regions, or employment, (3) effects on U.S. interests, and (4) barriers to divestment from affected foreign jurisdictions.

This section prohibits any person from taking adverse action against an entity integral to the national interests of the United States for action or inaction related to a foreign sustainability due diligence regulation and bars U.S. and state courts from recognizing related foreign court judgments unless authorized by an Act of Congress. It directs the President to take actions in the public interest to protect such entities from related adverse actions, considering impacts on U.S. consumers and businesses, economic, energy, and environmental security, and foreign relations. It establishes a private right of action for aggrieved entities in federal district court, with prevailing plaintiffs eligible for equitable or declaratory relief, punitive damages up to $1 million, attorney fees and costs, compensatory damages (including amounts paid under the foreign regulation), and other appropriate relief; violators are subject to civil penalties up to $1 million and potential ineligibility for federal awards or contracts for up to three years at the President's discretion.