US SB985

Prohibits U.S. companies deemed "integral to national interests" from complying with foreign sustainability due diligence regulations, specifically targeting the EU's Corporate Sustainability Due Diligence Directive requiring environmental and social impact assessments

Covers entities that do business with the federal government, derive 25% or more of revenue from extractive industries (agriculture, energy, mining, timber), manufacturing, defense production, or critical mineral processing

Bars U.S. courts from recognizing foreign court judgments related to sustainability due diligence regulations against covered entities

Establishes civil penalties up to $1,000,000 and potential 3-year federal contracting debarment for anyone taking adverse action against covered entities for non-compliance with foreign sustainability regulations

Creates a hardship exemption process allowing companies to petition the President for relief within 30 days, and grants affected entities a private right of action to sue for compensatory and punitive damages