Defending American Property Abroad Act of 2026
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Would let the President bar ships from U.S. ports if they have called at a port, harbor, or marine terminal that a Western Hemisphere free-trade partner nationalized or seized from an American owner.
The measure targets disputes where a foreign government has expropriated U.S.-owned port property, giving the President a trade-pressure tool while carving out exceptions for vessel emergencies and owner-authorized access.
What this bill would do
What it would do
The bill would amend the vessel-entry provisions of title 46 of the U.S. Code to let the President designate a port, harbor, or marine terminal as off-limits to U.S. entry if it is located in a Western Hemisphere country with a free trade agreement in force with the United States, is reachable only through land controlled by a U.S. person, and has been nationalized or expropriated by that country's government. Vessels that transited a designated facility would then be barred from entering or operating in U.S. waters or transferring cargo at U.S. ports. The President would have to lift a designation once the foreign country restores ownership, pays adequate compensation, the underlying conditions no longer apply, or the dispute is otherwise resolved to the President's satisfaction. The bill would also exempt vessels facing an emergency and vessels the U.S. property owner has separately authorized to use the facility, and it does not apply to disputes already in arbitration under the relevant trade agreement.
Key provisions
- 1Would authorize the President to designate a foreign port, harbor, or marine terminal as barred if it was nationalized or expropriated from a U.S. owner by a Western Hemisphere free-trade partner
- 2Would prohibit vessels that transited a designated facility from entering U.S. waters, operating there, or transferring cargo at U.S. ports
- 3Would require the President to remove a designation once ownership is restored, compensation is paid, conditions no longer apply, or the dispute is otherwise resolved
- 4Would exempt vessels experiencing an emergency and vessels authorized by the U.S. property owner to access the facility
Who would be affected
Ship owners and operators whose vessels call at ports, harbors, or marine terminals in Western Hemisphere free-trade-agreement countries; U.S. individuals or companies whose port or land property has been nationalized or expropriated abroad; the President, who would exercise the designation and removal authority; and shippers relying on affected foreign ports.
Why it matters
If enacted, the threat of losing U.S. port access could pressure foreign governments to reverse seizures of American-owned port property or negotiate compensation, giving U.S. property owners abroad new diplomatic leverage. Shipping companies using designated facilities could face sudden entry bans, and the emergency and owner-authorization exceptions would limit but not eliminate disruption to vessel traffic.
What would change
Changes to existing law
Amends 46 U.S.C. § 70022 (Sec. 2)
Adds a new category of prohibited vessels tied to nationalized/expropriated foreign port property and new emergency and owner-authorization exceptions to entry restrictions
Funding and costs
Congressional Budget Office estimate
CBO estimates that enacting H.R. 7084 would affect revenues and discretionary spending by less than $500,000 each over the 2026–2036 period, with no significant effect on the federal deficit.
CBO estimates that changes in civil penalty revenues resulting from H.R. 7084 would total less than $500,000 over the 2026–2036 period. The bill amends rules governing which vessels may enter U.S. waters or ports, adding an emergency exemption and prohibiting vessels that have used foreign ports or terminals previously owned by U.S. citizens and later seized by certain foreign governments. Implementing the bill's administrative requirements at the Coast Guard and the Department of State would cost less than $500,000 over the 2026–2031 period, subject to the availability of appropriated funds (discretionary spending approved annually by Congress). CBO did not identify any intergovernmental or private-sector mandates in the bill.
How implementation would work
The President would designate specific ports, harbors, or marine terminals meeting the statutory criteria, triggering an automatic entry bar on vessels that transited them. The President would monitor conditions in the foreign country and must remove a designation once restoration, compensation, or resolution occurs. Vessel operators or owners could seek the emergency or owner-authorization exceptions to obtain entry despite an active designation, without a separate agency rulemaking process specified in the text.
Legislative status & sources
Latest action
Received in the Senate.
Official CRS summary
Show the CRS summaryHide the CRS summary
This bill authorizes the President to prohibit the entry of a vessel into the United States if the vessel has transited any U.S. port, harbor, or marine terminal that has been nationalized or expropriated (e.g., seized) by a Western Hemisphere country that has a free trade agreement with the United States.
Under the bill, the President may prohibit the entry and operation of a vessel if it has called at any port, harbor, or marine terminal that was owned, held, or controlled by a U.S. entity or individual, but has been nationalized or expropriated by the government of a country that is located in the Western Hemisphere and has a free trade agreement in effect with the United States.
The prohibition ends when the President determines that (1) the applicable country has restored ownership of the property that had been nationalized or expropriated, (2) the applicable country has provided mutually acceptable compensation for the nationalized or expropriated property, (3) the conditions for the prohibition are no longer satisfied, or (4) the dispute has been otherwise resolved to the satisfaction of the President.
The bill permits certain foreign vessels that are otherwise prohibited from entering the United States under this bill or current law to enter if the vessel is experiencing an emergency (involving the vessel or an individual on the vessel) and in certain instances where access to a covered facility was granted by a U.S. property owner.
Legislative subjects
Free trade and trade barriers; Marine and inland water transportation; Navigation, waterways, harbors; Presidents and presidential powers, Vice Presidents; Property rights; Transportation and Public Works
Committee report
H. Rept. 119-563