The "Procurement Protection Act of 2025" aims to enhance state procurement processes by establishing strict eligibility criteria for companies bidding on contracts with state agencies or political subdivisions. Under the new law, companies that are state-owned enterprises of foreign adversaries, foreign adversary companies, or federally banned corporations will be ineligible to submit bids. Additionally, companies must certify that they do not fall under these categories, and those found to have submitted false certifications will face significant penalties, including civil fines and a ban from bidding on state contracts for 60 months.

The bill also introduces definitions for key terms such as "foreign adversary," "foreign adversary company," and "federally banned corporation," which are crucial for determining eligibility. It allows for exceptions in cases where no reasonable alternatives exist for procuring goods from ineligible companies, provided that such contracts receive pre-approval from the appropriate authorities. Furthermore, the act mandates disclosure of any business operations with foreign adversaries within the past 24 months, ensuring transparency in the procurement process. An emergency clause is included, allowing the act to take effect immediately upon passage and approval.