Bipartisan legislation led by Congressman August Pfluger (R) and Rep. Salud Carabajal (D-CA) advanced this week through the House Transportation and Infrastructure Committee, marking a significant step toward strengthening protections for American companies operating overseas.
The Defending American Property Abroad Act of 2025 aims to reinforce U.S. maritime security law by addressing the unlawful seizure of U.S.-owned property by foreign governments.
The bill is designed to ensure American businesses are not unfairly targeted, nationalized, or stripped of assets while operating abroad.
"Thrilled to see this critical legislation move one step closer to becoming law," said Pfluger. "American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights."
Pfluger emphasized that protecting U.S. investments overseas is vital for both economic growth and national security, adding that the legislation "sends a clear message" that the United States will hold foreign governments accountable when trade agreements or property rights are violated.
The bill ensures that the President would gain authority to deny entry into U.S. ports to vessels that use ports or terminals in the Western Hemisphere where U.S. property has been seized or nationalized. The provisions apply to ports located in countries with free trade agreements with the United States that were accessible only through U.S.-owned land and later expropriated by foreign governments.
The legislation also outlines conditions for lifting restrictions, including the return of seized property, termination of seizure measures, adequate compensation, or other resolutions satisfactory to the president. However, exceptions are included for emergencies and limited circumstances to ensure maritime safety is not compromised.
The legislation is rooted in concerns that trace back to May 2022, when then-Mexican president Andres Manuel Lopez Obrador shut down a deep-water port owned by U.S.-based Vulcan Materials Company. According to supporters of the bill, the actions violate the United States-Mexico-Canada Agreement and threaten American Jobs and economic interests.
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