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The American Business for American Companies Act of 2026 prohibits federal agencies from awarding contracts to inverted domestic corporations—foreign-incorporated entities that acquired substantially all assets of a U.S. company but retained significant U.S. ownership or control. The bill applies to both civilian and defense contracts exceeding $10 million and requires prime contractors to prevent inverted corporations from receiving more than 10 percent of subcontract value. Violations can result in contract termination or suspension/debarment of the contractor. The bill includes narrow waivers for national security and certain health programs.
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