Legislation Introduced by Congresswoman DeLauro

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108th Congress

The Wellstone Memorial Stop Corporate Expatriates Act, H.R. 1355 Back to Legislation

Studies have shown that in just one year, 11 companies which incorporated in foreign countries in order to avoid paying U.S. taxes secured $1 billion in federal contracts for defense or homeland security. These companies have abdicated their responsibility to our country, and they should not continue to benefit from government contracts -- particularly from contracts with the Department of Homeland Security, the very agency charged with securing our national defense.

In July 2002, the House of Representatives overwhelmingly passed a motion offered by Congresswoman DeLauro to prohibit the Department of Homeland Security from providing contracts to these corporate expatriates. However, the provision was significantly watered down before it was signed into law. On March 19, 2003, DeLauro introduced the Wellstone Stop Corporate Expatriates Act (HR 1355) to close those loopholes and honor the late Senator Paul Wellstone, who championed this effort in the Senate. The bill would:

Specify that the government can not contract with a shell corporation in Bermuda or its subsidiary.

Remove a provision that allows companies who have already incorporated overseas to continue to receive government contracts, to ensure that the ban applies to all corporate expatriates.

Narrow the overly broad waiver added by Republicans to waiver only in the interest of national security.

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