Nashville Standard

United States Senator Bill Hagerty has introduced the Prevent Regulatory Overreach from Turning Essential Companies into Targets (PROTECT USA) Act of 2025. This legislation aims to protect U.S. businesses from regulations imposed by the European Union's Corporate Sustainability Due Diligence Directive (CSDDD), which was adopted in May 2024.

The CSDDD enforces international conventions as binding laws on American companies, requiring them to meet the EU’s “net zero” carbon emissions target and other standards that exceed U.S. legal requirements. The directive also imposes financial penalties for non-compliance and affects small and medium-sized businesses by mandating large companies to ensure their suppliers adhere to environmental, social, and governance (ESG) standards.

Senator Hagerty stated, “American companies should be governed by U.S. laws, not unaccountable lawmakers in foreign capitals.” He described the EU's regulatory actions as an "affront to U.S. sovereignty" and expressed his commitment to opposing it.

The PROTECT USA Act seeks to prevent certain U.S. entities from being compelled to comply with foreign sustainability regulations and prohibits any adverse actions against them related to these regulations. It also provides a private right of action for affected entities to pursue civil cases when necessary.

This legislative move is part of Senator Hagerty’s ongoing efforts against the CSDDD. In September 2024, he collaborated with Representative Andy Barr in urging the Biden-Harris Administration to oppose the directive through a bicameral letter. Following this, he co-authored an op-ed with Representative French Hill in the Wall Street Journal addressing concerns over EU regulatory measures. Most recently, he participated in another bicameral letter advocating for intervention by the Secretary of the Treasury and Director of the National Economic Council regarding the CSDDD.