US HB7424

Prohibits executive agencies from awarding federal contracts to inverted domestic corporations (foreign-incorporated entities that acquired U.S. companies after May 8, 2014, where former U.S. shareholders hold more than 50% of the new entity)

Bars contracts to joint ventures where more than 10% is held by an inverted domestic corporation or its subsidiaries

Requires contracts exceeding $10,000,000 to include clauses prohibiting prime contractors from awarding first-tier subcontracts worth more than 10% of contract value to inverted domestic corporations, with violations resulting in contract termination or debarment

Provides exceptions for corporations with substantial business activities in their foreign country of organization, and allows agency heads to waive restrictions for national security or administration of federal health benefit programs (with 14-day congressional notification required)

Applies to both civilian contracts (Title 41) and defense contracts (Title 10), covering task and delivery orders issued after enactment regardless of when the underlying contract was signed