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Banning Federal Contracts for Companies That Moved Headquarters Abroad

This law aims to ensure that taxpayer money spent on government contracts goes to companies genuinely managed and operating significantly within the United States. It prohibits federal agencies from awarding public contracts (both civilian and defense) to corporations that moved their legal domicile abroad primarily to avoid US taxes while maintaining strong US ties. This measure is intended to protect US jobs and the tax base by limiting lucrative government contracts to companies committed to operating domestically.
Key points
The Federal Government is prohibited from entering into contracts with companies that reincorporated abroad after May 8, 2014, if they are still majority-controlled by former US owners or primarily managed from the US.
Major government contracts (over $10 million) will require prime contractors to avoid using these 'inverted' companies as first-tier subcontractors.
Waivers to the ban are allowed only for national security interests or for the efficient administration of federal health programs.
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Expired
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Additional Information
Print number: 118_HR_8727
Sponsor: Rep. DeLauro, Rosa L. [D-CT-3]
Process start date: 2024-06-13
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash-preview-09-2025
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

American Business for American Companies Act of 2024

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 118_HR_8727.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2024-06-13.

What are the main provisions?

Key points include:

  • The Federal Government is prohibited from entering into contracts with companies that reincorporated abroad after May 8, 2014, if they are still majority-controlled by former US owners or primarily managed from the US.
  • Major government contracts (over $10 million) will require prime contractors to avoid using these 'inverted' companies as first-tier subcontractors.
  • Waivers to the ban are allowed only for national security interests or for the efficient administration of federal health programs.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. DeLauro, Rosa L. [D-CT-3].

What is the latest detailed status?

The latest detailed status is: Introduced in House

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-25.

CATEGORIES

Economy Public Investments Security