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US SB3811
Bill
AI Summary
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Prohibits federal agencies from awarding contracts to inverted domestic corporations (U.S. companies that reincorporated abroad after May 8, 2014, while maintaining more than 50% ownership by former U.S. shareholders) or joint ventures where such entities hold more than 10% interest
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Requires contracts exceeding $10,000,000 to include clauses barring prime contractors from awarding first-tier subcontracts worth more than 10% of total contract value to inverted domestic corporations, with violations potentially resulting in contract termination and debarment
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Defines "significant domestic business activities" as having at least 25% of employees, employee compensation, assets, or income based in the United States, which triggers the prohibition if combined with U.S.-based management and control
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Provides exemptions for corporations with substantial business activities in their foreign country of incorporation and allows agency heads to waive restrictions for national security or health program administration purposes
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Applies to both civilian contracts (Title 41) and defense contracts (Title 10), covering task and delivery orders issued after enactment even under pre-existing contracts
Legislative Description
American Business for American Companies Act of 2026
Government operations and politics
Last Action
Read twice and referred to the Committee on Homeland Security and Governmental Affairs. (text: CR S535-537)
2/9/2026