Defending American Property Abroad Act of 2026

Protection of Property Rights: The bill establishes a mechanism to address situations where a Western Hemisphere country has nationalized or expropriated property owned, held, or controlled by a United States person (Section 2, subsection (b)(1)(C) and (2)).

Path to Restoring Designation: The President can remove a designation if the Western Hemisphere country restores ownership of the property to the United States person and stops the measures used to seize it (Section 2, subsection (b)(3)(B)).

Ensuring Fair Compensation: The bill provides a way to address property disputes if the foreign country provides adequate and effective compensation for the property in convertible foreign exchange or other mutually acceptable compensation equivalent to the full value (Section 2, subsection (b)(3)(C)).

Emergency Exceptions: The bill includes provisions for vessels experiencing an emergency or vessels authorized by an owner to transit certain facilities (Section 2, subsection (a)(1)(C)(iii)).

Restrictions on Vessel Entry: The bill introduces new conditions that may affect which vessels can enter or operate in United States waters or transfer cargo in United States ports based on their recent transit history (Section 2, subsection (b)(1)(C)).

Presidential Discretionary Power: The President has the authority to designate specific ports, harbors, or marine terminals as subject to these rules based on the actions of foreign governments (Section 2, subsection (b)(2)).