Legislation designed to protect American companies operating abroad passed the U.S. House on Friday. Authored by Republican U.S. Rep. August Pfluger of Texas, the measure will penalize foreign countries—notably, Mexico—if they nationalize or expropriate property from a U.S. owner.
At issue has been the threatened seizure of a deep-water port owned by U.S.-based Vulcan Materials Company. Pfluger’s legislation, the Defending American Property Abroad Act of 2026, would allow the president to designate the United States off-limits to any vessel that passes through a seized U.S. property. This would have the effect of redirecting shipping lines that want continued access to U.S. ports.
“When countries violate trade agreements and illegally seize assets from U.S. companies, it puts American job security, economic security, and national security at risk,” said Pfluger. “This legislation is critical because it ensures there are enforceable consequences for those actions. It sends a clear message to any foreign government that the United States will not tolerate this behavior and that we will defend our economic interests, uphold the rule of law, and stand firmly behind American companies operating abroad.”
The legislation passed 246 to 164, with 41 Democrats breaking ranks to join Republicans in support.
“U.S. investments abroad have long been essential to both our economic development and national security, and this legislation takes a crucial step to protect and defend U.S. business interests globally,” said House Speaker Mike Johnson (R–LA).
The legislation now goes to the U.S. Senate for consideration.
