The House of Representatives passed legislation March 27 aimed at protecting American companies from foreign government seizures of port facilities, sending the bipartisan measure to the Senate in a 247-164 vote .
The Defending American Property Abroad Act (H.R. 7084), sponsored by Rep. August Pfluger, R-Texas, would authorize sanctions against Western Hemisphere countries that seize port facilities owned by U.S. entities . The measure drew support from 41 Democrats alongside Republicans , reflecting growing congressional concern over foreign interference with American business interests overseas.
The legislation would give the President authority to deny entry into U.S. ports for vessels that use ports or terminals in Western Hemisphere countries where American property has been seized or nationalized . The bill would prohibit entry by vessels that have accessed foreign ports or marine terminals previously controlled by U.S. citizens and later nationalized or expropriated by certain foreign governments, as determined by the Department of State .
“American companies operating abroad should not have to fear arbitrary government actions that undermine their property rights,” Pfluger said following the vote. The Texas Republican added that the legislation “sends a clear message… that the United States will not tolerate this behavior.”
House Majority Leader Steve Scalise praised the measure’s passage, saying it “deters foreign nations from unlawfully seizing American property by imposing retaliatory prohibitions on those that commit this blatant theft, protecting the interests of American property owners and mitigating risks for American businesses operating globally.”
However, opposition Democrats raised concerns about potential overreach. 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 legislation addresses a longstanding issue in U.S.-Latin American relations. According to a 1977 U.S. Comptroller General report to Congress, between 1961 and 1975, 260 major expropriation disputes involving U.S. private investments occurred worldwide, with 118 in Latin America . Studies show nationalization rose in the 1960s and 1970s, followed by privatization in the 80s and 90s, then increased nationalization again in the 2000s and 2010s .
The timing reflects heightened concerns over Chinese expansion in Latin American ports. China has moved to acquire specialized ports and terminals in Brazil, with the megaport of Chancay in Peru most emblematic of Beijing’s strategy to control port facilities and resource flows . Chinese company Hutchison Ports owns 53 ports across 24 countries, including seven in the Americas besides operations in Panama .
The House Transportation and Infrastructure Committee advanced the bill in January with a 36-22 vote . The Congressional Budget Office estimates implementation would cost the Coast Guard and State Department less than $500,000 over the 2026-2031 period .
The bill’s goal is to protect American property owners from wrongful seizure by foreign governments, with property rights protection considered crucial for both economic growth and national security . The measure represents the latest congressional effort to counter what lawmakers see as growing economic nationalism targeting U.S. investments abroad.
Pfluger introduced the legislation January 15 with four original cosponsors, including Rep. Salud Carbajal, D-Calif . The bill’s bipartisan nature reflects broad concern about protecting American economic interests, even as lawmakers debate the proper scope of U.S. retaliation against expropriating governments.
The Senate must now consider the measure before it can reach President Trump’s desk. With Congress returning from recess April 13, Pfluger said he will “continue advocating for it until it passes through the Senate and is signed into law” as lawmakers increasingly view protection of overseas U.S. business interests as a national security imperative.
The legislation’s passage signals Congress’s willingness to use America’s maritime leverage to protect private property rights abroad, potentially escalating economic disputes with countries that nationalize U.S. assets. As global supply chains become increasingly critical to U.S. economic security, the measure represents a new front in protecting American commercial interests worldwide.