The House passed bipartisan legislation on March 27 that would authorize President Donald Trump to bar vessels from U.S. ports if they transit facilities seized from American companies by Western Hemisphere governments, marking Congress’s latest effort to protect overseas business interests amid rising geopolitical tensions.
The Defending American Property Abroad Act of 2026 (H.R. 7084) passed by a vote of 247-164, with bipartisan support including Democrat Rep. Salud Carbajal of California as an original cosponsor . The legislation now heads to the Senate, where it faces an uncertain future .
Sponsored by Rep. August Pfluger, R-Texas, the measure directly responds to growing concerns about foreign governments nationalizing or expropriating American-owned port facilities and infrastructure. Under the bill, the President may prohibit vessel entry and operations if ships have called at ports, harbors, or marine terminals that were owned by U.S. entities but have been seized by Western Hemisphere countries with free trade agreements with the United States .
“American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights,” Pfluger said following the House vote. The Texas Republican has championed the legislation since introducing it on January 15 with four original cosponsors.
The timing coincides with heightened tensions over Chinese and foreign control of critical infrastructure in Latin America. Earlier this year, Panamanian maritime authorities took control of two ports on the Panama Canal from Hong Kong-based CK Hutchison after pressure from the United States , while Washington has set its sights on the Chinese-owned Chancay megaport in Peru .
Democratic opposition focused on concerns about overreach and potential retaliation. Rep. Jesus Garcia, D-Ill., argued the bill “limits the ability of foreign governments to adopt measures that protect their communities and their environment, essentially coercing those foreign governments to prioritize the interests of U.S. corporations over their people.”
The final vote was 247-164, with 41 Democrats joining all but 11 Republicans in support . The measure received backing from House Republican leadership, with Majority Leader Steve Scalise calling it essential “to defend the property rights of American companies abroad” and saying it “deters foreign nations from unlawfully seizing American property by imposing retaliatory prohibitions.”
The legislation reflects mounting frustration in Congress over what lawmakers view as increasing foreign seizures of American assets. The bill reflects growing frustration over foreign seizures of American assets—a trend seen not only in Mexico but also in China, Venezuela and other nations. By leveraging U.S. control over global shipping lanes, the legislation could deter future expropriations while avoiding protracted legal battles .
The measure specifically targets countries with free trade agreements with the United States, a provision designed to maximize economic pressure on key trading partners. The bill authorizes the President to prohibit vessel entry if ships have transited facilities that were owned by U.S. entities but have been nationalized or expropriated by Western Hemisphere countries with free trade agreements with the United States .
House Transportation and Infrastructure Committee Chairman Sam Graves, R-Mo., who oversaw the bill’s markup, emphasized the strategic importance of protecting American commercial interests abroad. The committee reported the measure by a vote of 36-22 , indicating continued partisan divisions over the approach.
Industry groups have expressed cautious optimism about the legislation’s potential deterrent effect. For U.S. firms facing property seizures abroad, the legislation offers a potential lifeline, while sending a clear message to foreign governments that violating American property rights may carry a steep price .
Critics warn of unintended consequences, however. Aggressive maritime restrictions could provoke retaliatory measures, potentially destabilizing supply chains, while the bill’s narrow focus on the Western Hemisphere leaves other regions unchecked .
The legislation comes as the Trump administration has prioritized reasserting U.S. influence in the Western Hemisphere. The administration’s strategic focus on stabilizing and securing the Western Hemisphere represents a “Trump Corollary” to the Monroe Doctrine designed to discourage mass migration, combat narcotics trafficking and undercut U.S. adversaries such as China, Iran and Cuba .
Senate prospects remain unclear, though the bipartisan House support may provide momentum. Bipartisan support suggests potential for swift passage, which could reshape U.S. trade policy in dealing with property disputes abroad.
The measure now awaits consideration by the Senate Foreign Relations and Commerce committees, where it will likely face scrutiny over implementation details and potential diplomatic ramifications. With Congress scheduled to return from recess on April 13, Senate action could come within weeks.
If enacted, the legislation would provide Trump with new tools to respond to property seizures without broader sanctions, potentially reshaping how the United States protects American business interests in an increasingly complex global trade environment.