Stop Corporate Inversions Act of 2026

1) S3847 was introduced on February 11, 2026, by Senator Durbin (D-IL) and referred to the Senate Committee on Finance. It has 9 cosponsors and an identical House companion bill (HR7493). The bill is in the early stages with no hearings yet—both chambers must pass identical text, reconcile differences via conference committee, and then receive presidential approval. Given the current 119th Congress (2025–2027) and divided control (Democratic Senate majority, Republican House majority, likely Republican President), passage probability is low in the near term but rises if there is a unified government after the 2026 midterms. 2) The money trail is purely a tax penalty mechanism—there is no authorized spending or appropriation. The bill increases tax liabilities for inverted corporations by treating them as U.S. domestic corporations for tax purposes. This eliminates the benefit of lower foreign tax rates and reduces deferred tax advantages. The revenue raised goes to the U.S. Treasury, not to specific programs. 3) Structural losers are the four publicly traded inverted companies domiciled in Ireland: Medtronic ($MDT, ~$30B market cap), Perrigo ($PRGO, ~$1.5B), Allegion ($ALLE, ~$3.8B), and CRH ($CRH, ~$20B). Healthcare sector bears the brunt—$MDT and $PRGO are pure-play medical device/pharma companies. $ALLE (security hardware) and $CRH (construction materials) are industrial. Johnson & Johnson ($JNJ) moved to the U.S. in 2023 and is not affected. $PFE, $SYK, and $EL did not invert and are unaffected. The Presidential memorandum on energy infrastructure dated April 20, 2026, is directly relevant to $CRH, which supplies aggregates and building materials for large-scale construction projects—the memorandum's acceleration of energy project timelines could partially offset CRH's tax risk by boosting its U.S. revenue growth. 4) Real market data shows $PRGO at $11.51, near its 52-week low of $9.23, with a 30-day gain of 20.78% likely on unrelated short-covering or operational news. $MDT at $81.90 is near the bottom of its 52-week range ($79.93–$106.33), down 6.01% over 30 days, reflecting broad healthcare-sector weakness. $CRH at $114.44 is 13% off its 52-week high but up 12.48% over 30 days—the energy infrastructure memorandum may be supporting this stock. $ALLE at $137.86 is at its 52-week low, down 4.88% in 7 days and 4.6% in 30 days. The price action for $ALLE and $MDT is consistent with a market starting to price in inversion tax risk, while $PRGO appears to be trading on company-specific factors. 5) Timeline: Next steps include committee hearings (not yet scheduled), committee markup, floor vote in the Senate, and then House consideration of companion bill HR7493. With identical bills introduced in both chambers, legislative momentum exists, but the divided Congress makes passage unlikely before the 2026 midterms. If Democrats retain the Senate and win the House in November 2026, passage probability increases significantly in the 120th Congress (2027–2029). In the near term, the bill introduces headline risk for affected tickers but no immediate financial impact.