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The American Business for American Companies Act of 2024 prohibits federal agencies from awarding government contracts to companies that have relocated their corporate headquarters abroad while maintaining significant U.S. ownership and operations, known as "inverted domestic corporations." The ban applies to both civilian agency contracts and Department of Defense contracts valued at any amount, and extends to subcontracts worth more than 10 percent of a prime contract's value on contracts exceeding 10 million dollars. Companies that violate these rules through their subcontractors could face contract termination and suspension or debarment from future federal work. The legislation targets corporations that acquired U.S. companies or operations since May 2014 and then incorporated themselves in foreign countries, though it includes exceptions for companies with substantial business activities in their new country of incorporation and allows waivers for national security or essential health program needs. Agencies must report any waivers to Congress within 14 days, and the restrictions apply to all new task and delivery orders issued after the bill's enactment.

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