DPA Modernization Act of 2026

Amends DPA Section 101(b) to limit the President's powers for controlling civilian market distribution to national emergencies, natural disasters (Stafford Act), or public health emergencies (Public Health Service Act Section 319). It also limits the control period to one year, with a possible 180-day extension requiring a non-delegable report to Congress.

Amends DPA Section 101(d) to allow the President, in consultation with the DPA Committee, to waive or revise relevant regulations to expedite the procurement of critical technologies or critical minerals.

Amends DPA Section 201(d)(1) (formerly 301(d)(1)) to increase the threshold for certain loan guarantees from $50,000,000 to $100,000,000, and shifts the determination authority from the President to the Fund manager of the Defense Production Act Fund. It also removes specific conditions related to private financing.

Establishes the Critical Minerals Resilience Initiative under DPA Section 203(b) (formerly 303). This initiative allows a DPA Committee member, in consultation with the Executive Director and Fund Manager, to make grants, purchases, and commitments to purchase involving entities in the US, NATO countries, or major non-NATO allies. The purpose is to prevent foreign adversary dominance in critical mineral mining/processing and ensure viability through off-take agreements, price floors, or incentives.

Adds a new DPA Section 203(i) allowing the President to waive or revise regulations to expedite the procurement of critical technologies or critical minerals, and the permitting of critical infrastructure needed to produce or refine them, when exercising authorities under DPA Sections 201, 202, or 203.

Adds a new DPA Section 203(j) requiring federal agencies delegated DPA authority to identify workforce and skills gaps in the domestic industrial base. It also allows agencies to direct a portion of financial assistance to recruit, train, place, or retain workers in defense-critical occupations, with performance standards. Agencies must report on these efforts annually.

Amends DPA Section 206 (formerly 706) to require annual DPA strategy reports from agencies, including assessments of industrial base needs, detailed strategies, spending plans, and results of a new 5-year "table-top exercise" simulation. It also mandates a "Strategy on Securing Supply Chains Essential to National Defense" in the first report, focusing on medical materials, critical minerals, and naval shipbuilding capacity, including vulnerability analysis and use of DPA authorities against foreign adversaries.

Adds a new DPA Section 208, prohibiting the President from denying financial support under DPA Title II (Expansion of Productive Capacity and Supply) for the production of energy (other than energy production itself) based on the energy source involved (exploration, development, production, utilization, transportation, or sale).

Adds a new DPA Section 209, making "covered entities" ineligible for DPA Title II assistance. A "covered entity" is one in which a "covered individual" directly or indirectly holds a "significant interest" (20% or more equity). "Covered individuals" include the President, Vice President, DPA Committee members, and their spouses, children, sons-in-law, or daughters-in-law.

Amends DPA Section 303 (formerly 703) to allow the FEMA Administrator, in consultation with HHS, to designate an "Outreach Representative" during a public health emergency. This individual, with experience in medical supply production/distribution, acts as a government-wide single point of contact for outreach to manufacturers and suppliers, encouraging partnerships.

Adds a new DPA Section 314 establishing a National Defense Executive Reserve. Its purpose is to improve federal preparedness for national defense emergencies by allowing private sector experts to volunteer, be trained, and temporarily employed in federal positions within agencies like Commerce, Defense, and Homeland Security during emergencies. The Director of OPM, in consultation with relevant Secretaries, must issue rules for its operation, including criteria for positions, selection, compensation, training, security clearances, and ethics.

Amends DPA Section 316(b)(1) (formerly 721) to include the consideration of certain agricultural land transactions by the Committee on Foreign Investment in the United States (CFIUS). Specifically, CFIUS must determine if a "reportable agricultural land transaction" (acquisition of agricultural land by a foreign person from China, DPRK, Russia, or Iran, based on intelligence community info, and requiring disclosure under AFIDA) is a covered transaction and if a review is needed. The requirement sunsets when the respective country is removed from the list of foreign adversaries. It also adds the Secretary of Agriculture as a CFIUS member for transactions involving agricultural land, biotechnology, or the agriculture industry.

Amends DPA Section 317 (formerly 722) to restructure the Defense Production Act Committee. It adds the Fund Manager of the DPA Fund and the Director of OMB as members, designates the Assistant to the President for National Security Affairs as non-voting Chairperson, and the Director of OMB as the Executive Director. It also significantly expands the annual report requirements to include agency effectiveness evaluations, fraud risk assessments, and National Defense Executive Reserve activities.

Adds new subsections to DPA Section 317. It mandates a "Defense Production Act Dashboard" for real-time tracking of actions, a "Toolkit and Online Resources Site" (one-stop shop) for agencies and businesses, and requires the Committee to establish fraud risk management processes and designate a point of contact. It also mandates testimony from the Executive Director and agency heads to Congress after annual reports.