American Business for American Companies Act of 2026

Prohibition on Inverted Domestic Corporations: The bill stops heads of executive agencies from awarding contracts for property or services to foreign incorporated entities determined to be inverted domestic corporations or their subsidiaries. (Section 2(a)(1)(A))

Joint Venture Restrictions: The bill prevents the award of contracts to joint ventures where more than s10 percent of the venture is held by an inverted domestic corporation or its subsidiary. (Section 2(a)(1)(B))

Subcontracting Limitations: For contracts exceeding $10,000,000, prime contractors are prohibited from awarding first-tier subcontracts greater than 10 percent of the total contract value to an inverted domestic corporation or its subsidiary. (Section 2(a)(2)(A)(i))

Prevention of Tiered Subcontracting Avoidance: The bill prevents prime contractors from structuring subcontract tiers to allow an inverted domestic corporation to perform more than 10 percent of the total contract value through lower-tier subcontracts. (Section 2(a)(2)(A)(ii))

Contract Termination Risks: Prime contractors that violate the subcontracting rules may face contract termination for default. (Section 2(a)(2)(B)(i))

Suspension and Debarment: Violations of the subcontracting requirements may result in the matter being referred to a suspension or debarment official, which could lead to the suspension or debarment of the prime contractor. (Section 2(a)(2)(B)(ii))