H.R.7424

Prohibits federal contracts to inverted domestic corporations and requires certain subcontract clauses.

The American Business for American Companies Act of 2026 prohibits federal agencies from awarding contracts to inverted domestic corporations. An inverted domestic corporation is defined as a foreign entity that acquires a U.S. corporation or partnership and whose management and control primarily occur in the U.S. with significant domestic business activities. The act also mandates that contracts over $10 million include clauses prohibiting prime contractors from awarding more than 10% of the contract value to entities or joint ventures that are inverted domestic corporations.