The "Prevent Regulatory Overreach from Turning Essential Companies into Targets Act of 2025," or PROTECT USA Act, aims to safeguard U.S. companies from foreign sustainability due diligence regulations. It specifically prohibits entities deemed integral to the national interests of the United States from complying with such foreign regulations, including the European Union's Corporate Sustainability Due Diligence Directive. This prohibition applies to businesses involved with the federal government, those in extractive or manufacturing sectors, or those producing critical minerals or national defense products.

The Act defines "foreign sustainability due diligence regulation" as any foreign law requiring environmental or social impact assessments, actions, and reporting, explicitly including the EU's directive but excluding those similar to existing U.S. laws. While generally prohibiting compliance, it allows for exceptions for ordinary business activities or adherence to U.S. statutes. Furthermore, the bill establishes a hardship relief process, enabling entities to petition the President for an exemption if compliance would cause significant difficulty.

To protect U.S. entities, the bill prohibits any person from taking adverse action against them for non-compliance with foreign regulations and ensures that foreign judgments related to these regulations will not be recognized in U.S. courts. The President is mandated to take actions in the public interest to protect these entities. Additionally, the Act creates a private right of action, allowing aggrieved entities to sue violators for damages and other relief, with penalties for non-compliance including civil fines up to $1,000,000 and potential ineligibility for federal contracts.