Legislation Launched to Protect U.S. Assets from Foreign Seizures

Senator Bill Hagerty (R-TN) and a group of bipartisan senators have put forth new legislation aimed at preventing foreign governments, particularly Mexico, from seizing assets owned by U.S. entities.

As a member of the Senate Foreign Relations Committee, Hagerty is spearheading this initiative. The proposed Defense Property Overseas Act intends to prohibit retaliation against any Western Hemisphere country that unlawfully confiscates American assets, enforcing penalties for such actions.

This move comes in response to the Mexican government’s decision to attempt seizing deep-sea ports owned by Vulcan Materials Company, a U.S.-based firm. Such actions are in direct violation of the US-Mexico-Canada Agreement (USMCA), which outlines trade regulations between the U.S. and its southern neighbors.

“I strongly condemn the Mexican government’s threat against Vulcan Materials Company, and I appreciate the bipartisan commitment from the U.S. Senate,” Hagerty mentioned in a statement.

He elaborated, “With the leadership of previous Mexican president Andrés Manuel López Obrador and the current administration under President Claudia Sheinbaum, Mexico has consistently undertaken acts of theft against major American enterprises. They’re seizing U.S. assets for reasons related to nationalization and more.”

The Defense Facilities Overseas Act would grant the Department of Homeland Security (DHS) the ability to restrict access to U.S. ports from foreign countries that have seized infrastructure from American businesses. In addition, U.S. trade representatives would be empowered to investigate and address situations where foreign nations deny American companies fair treatment or seize their resources unfairly.

This legislation has garnered support from senators including Tim Kane (D-VA), Katie Britt (R-AL), Tommy Tuberville (R-AL), Roger Wicker (R-MS), Ted Budd (R-NC), Marsha Blackburn (R-TN), and Angela Blacklooks (D-MD).

In a statement, Pfluger expressed, “American companies abroad shouldn’t have to fear arbitrary government actions that violate property rights. The enforcement of U.S. property laws is crucial to ensuring protection against unjust appropriation. Safeguarding American property rights overseas is vital for fostering economic growth and ensuring national security. I encourage my colleagues in Congress to back this significant legislation, sending a clear message that the U.S. won’t tolerate unfair practices against American businesses.”

Back in May 2022, then-Mexican president López Obrador initiated legal action against Vulcan Materials, claiming breaches of contract and issuing military presence at the company’s facilities.

By August 2024, López Obrador sought to designate the Balkan port and nearby mining areas as “protected natural zones.”

In April 2025, Senator Hagerty, alongside Kane, sent a letter to the Mexican Minister of Economy, Ebrard Casaubon, urging him to address the unjust treatment experienced by Vulcan Materials, which has been operating in Mexico for many years and employs thousands.

Kane commented, “The Mexican government’s undue targeting of Vulcan Materials, which provides jobs for over 1,000 people in Virginia, is detrimental to U.S.-Mexico relations and severely undermines investor confidence. This is exactly why we are collaborating with our colleagues to introduce this bipartisan measure to halt illegal asset confiscation.”