Defending American Property Abroad Act of 2026

The bill grants the President authority to ban vessels from entering U.S. ports if those vessels have docked at any port, harbor, or marine terminal in a Western Hemisphere country that has a free trade agreement with the United States, where that facility was previously owned by an American entity or person but has been nationalized or seized by that country's government. The ban remains in effect until the President determines that the country has restored the property to its owner, provided acceptable compensation, no longer meets the conditions for the ban, or resolved the dispute to the President's satisfaction. The law includes exceptions allowing certain foreign vessels to enter U.S. ports during emergencies or when a U.S. property owner has granted access to the seized facility.

The prohibition operates by preventing vessels that have called at expropriated American-owned ports from docking at any U.S. port or marine terminal. This would effectively restrict maritime commerce involving those vessels and the United States. The President has discretion to lift the ban once any of four conditions is met: property restoration, compensation acceptance, changed circumstances, or dispute resolution. Emergency situations and cases where the American property owner consents to vessel access would allow limited exceptions to the general prohibition.