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I
119th CONGRESS
2d Session
H. R. 7688
IN THE HOUSE OF REPRESENTATIVES

February 25, 2026

Mr. Davidson (for himself, Mrs. Beatty, Mr. Huizenga, Mr. Vargas, and Mr. Nunn of Iowa) introduced the following bill; which was referred to the Committee on Financial Services

A BILL

To modernize and reauthorize the Defense Production Act of 1950, and for other purposes.

Section 1. Short title

This Act may be cited as the DPA Modernization Act of 2026.

Sec. 2. Priorities and allocations

Title I of the Defense Production Act of 1950 (50 U.S.C. 4511 et seq.) is amended—

(1)

in section 101—

(A)

by striking he each place such term appears and inserting the President;

(B)

in subsection (a), by striking or appropriate each place such term appears;

(C)

in subsection (b)—

(i)

by striking The powers and inserting (1) The powers;

(ii)

by striking unless the President finds (1) that such and inserting the following:

unless—

(A)

the President finds that—

(i)

such;

(iii)

by striking defense, and (2) that and inserting the following:

defense; and

(I)

that;

(iv)

by striking the period at the end and inserting ; and; and

(v)

by adding at the end the following:

(B)

the powers are used to address—

(i)

a national emergency declared by the President;

(ii)

a natural disaster declared by the President pursuant to the Robert T. Stafford Disaster Relief and Emergency Assistance Act; or

(iii)

a public health emergency, as determined by the Secretary of Health and Human Services pursuant to section 319 of the Public Health Service Act.

(2)

The powers described in this section may not be used to control the general distribution of any material in the civilian market for a period exceeding 1 year, except that the President may extend such 1-year period for up to 180 days upon reporting to Congress, on a non-delegable basis, that the extension is essential to meet national defense requirements.;

(D)

in subsection (c)—

(i)

in paragraph (1), by striking Notwithstanding any other provision of this Act, the and inserting The; and

(ii)

in paragraph (3), by striking President and inserting Executive Director of the Defense Production Act Committee; and

(E)

in subsection (d)—

(i)

strike section shall and all that follows through issue, and annually review and update and insert the following:

section, in consultation with the Defense Production Act Committee—

(1)

shall—

(A)

issue and;

(ii)

by redesignating paragraph (2) as subparagraph (B), and adjusting the margin of such subparagraph accordingly;

(iii)

in subparagraph (B), as so redesignated, by striking the period at the end and inserting ; and; and

(iv)

by adding at the end the following:

(2)

may waive or revise relevant regulations for the purpose of expediting the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the priorities and allocations.;

(2)

in section 102—

(A)

by striking he each place such term appears and inserting the President; and

(B)

by striking sections 101 and 704 of this Act and inserting sections 101 and 304;

(3)

in section 103, by striking $10,000 and inserting $100,000;

(4)

by redesignating section 107 as section 204 and transferring such section so as to appear after section 303; and

(5)

by redesignating section 108 as section 207 and transferring such section so as to appear after section 305.

Sec. 3. Expansion of productive capacity and supply

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—

(1)

by redesignating title III as title II;

(2)

by redesignating sections 301, 302, 303, 304, and 305 as sections 201, 202, 203, 205, and 206, respectively;

(3)

in section 201, as so redesignated—

(A)

in the heading, by striking PRESIDENTIAL AUTHORIZATION FOR THE NATIONAL DEFENSE and inserting Loan guarantees;

(B)

in subsection (a)—

(i)

in paragraph (1), by inserting , with the concurrence of the Fund manager of the Defense Production Act Fund, before to provide; and

(ii)

in paragraph (2)—

(I)

in the heading, by striking Presidential determinations and inserting Determinations;

(II)

by striking during a period of and inserting with respect to a;

(III)

by striking if the President and inserting if the guaranteeing agency, in coordination with the Fund manager of the Defense Production Act Fund and relevant members of the Defense Production Act Committee,; and

(IV)

in subparagraph (G)(i), by striking the President and inserting Fund manager of the Defense Production Act Fund;

(C)

in subsection (b)(1), by striking President and inserting Fund manager of the Defense Production Act Fund;

(D)

in subsection (c), by striking President each place such term appears and inserting Fund manager of the Defense Production Act Fund; and

(E)

in subsection (d)—

(i)

in paragraph (1)—

(I)

by striking shortfalls.— and all that follows through If the making and inserting shortfalls.—If the making;

(II)

by striking $50,000,000 and inserting $100,000,000;

(III)

by striking only— and all that follows through if the President and inserting only if the Fund manager of the Defense Production Act Fund;

(IV)

by striking guarantee; and and inserting guarantee.;

(V)

in subparagraph (A), by striking clause (ii); and

(VI)

by striking subparagraph (B); and

(ii)

in paragraph (2)(B), by striking not later than 10 days; and

(4)

in section 202, as so redesignated—

(A)

in subsection (a), by inserting authorize a lending agency, with the concurrence of the Fund manager of the Defense Production Act Fund and relevant members of the Defense Production Act Committee, to after President may;

(B)

in subsection (b)—

(i)

in paragraph (1), by striking and at the end;

(ii)

in paragraph (2)—

(I)

by inserting except before during;

(II)

by striking no such loan may be made unless the President and inserting no such loan may be made with respect to the national emergency unless the lending agency, in consultation with the Fund manager of the Defense Production Act Fund and relevant members of the Defense Production Act Committee,; and

(III)

by striking the period at the end and inserting a semicolon; and

(iii)

by adding at the end the following:

(3)

any such loan shall be secured by a first-priority lien on such collateral as the Fund manager of the Defense Production Act Fund may require, and such lien shall—

(A)

attach upon disbursement of funds;

(B)

be senior to all other liens and claims; and

(C)

be deemed perfected upon attachment; and

(4)

in the event that the loan recipient defaults on the repayment of the loan, any portion of such repayment that is not satisfied from the collateral described in paragraph (3) shall have priority in payment over all other unsecured claims.; and

(C)

in subsection (d)—

(i)

in paragraph (1)—

(I)

by striking $50,000,000 and inserting $100,000,000;

(II)

by striking only— and all that follows through if the President and inserting only if the Fund manager of the Defense Production Act Fund;

(III)

in subparagraph (A), by striking ; and at the end and inserting a period; and

(IV)

by striking subparagraph (B); and

(ii)

by striking paragraph (2);

(5)

in section 203, as so redesignated—

(A)

in the heading, by striking OTHER PRESIDENTIAL ACTION AUTHORIZED and inserting Purchases, commitments to purchase, and subsidy payments;

(B)

in subsection (a)—

(i)

in paragraph (1) by striking the President and inserting a member of the Defense Production Act Committee described under section 317(b)(1)(A), in consultation with the Executive Director of the Defense Production Act Committee,;

(ii)

in paragraph (5)—

(I)

in the heading, by striking Presidential and inserting Federal agency;

(II)

by striking Except as provided in paragraph (7), the President and inserting The member described under paragraph (1);

(III)

by striking the President, on a non-delegable basis, and inserting member, on a non-delegable basis, and in consultation with the Executive Director of the Defense Production Act Committee,; and

(IV)

in subparagraph (B), by striking Presidential;

(iii)

in paragraph (6)—

(I)

in subparagraph (A)—

(aa)

by striking Except as provided in paragraph (7), the President and inserting The member described under paragraph (1); and

(bb)

by striking by the President and inserting by the member;

(II)

in subparagraph (B)—

(aa)

by striking $50,000,000 and inserting $100,000,000;

(bb)

by striking the 30-day period following; and

(cc)

by inserting by the Fund manager of the Defense Production Act Fund after in writing; and

(III)

by striking subparagraph (C); and

(iv)

by striking paragraph (7) and inserting the following:

(7) Limitations on equity investments

The equity shares of an entity may not be acquired under this section if such acquisition would result in the Government holding, in the aggregate, 15 percent or more of the equity shares of the entity.

(8) Acquisition and liquidation

A member of the Defense Production Act Committee described under section 317(b)(1)(A)—

(A)

may make an equity investment in an entity under this section only after the Fund manager of the Defense Production Act Fund finds that the entity is unable to obtain additional equity investment from private sources on commercially reasonable terms; and

(B)

shall seek to sell and liquidate any equity support for an entity provided under this section as soon as commercially feasible, commensurate with other similar investors in the entity, taking into consideration the national security interests of the United States.;

(C)

by redesignating subsections (b) through (g) as subsections (c) through (h), respectively;

(D)

by inserting after subsection (a) the following:

(b) Critical minerals resilience
(1) Critical Minerals Resilience Initiative

There is established the Critical Minerals Resilience Initiative, under which a member of the Defense Production Act Committee described under section 317(b)(1)(A), in consultation with the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund, may make grants, purchases, and commitments to purchase involving an entity in the United States, a member country of the North Atlantic Treasury Organization, or a major non-NATO ally, to—

(A)

ensure that the mining or processing of critical and strategic materials is not dominated by a foreign adversary; and

(B)

provide for offtake agreements, price floors, or incentives in order to ensure the viability of mines or processing facilities for critical and strategic materials outside the control of a foreign adversary.

(2) Cooperation among entities

To the extent practicable, the Defense Production Act Committee shall develop a process to encourage cooperation among, and manage potential conflicts between—

(A)

entities that are domestic sources, and the countries where they are located; and

(B)

for the purpose of carrying out the Critical Minerals Resilience Initiative, countries involved in the Initiative.;

(E)

in subsection (c), as so redesignated, by striking not more than 10 years and inserting more than 10 years

(F)

in subsection (d), as so redesignated—

(i)

in paragraph (1)(A), by striking necessary to carry out the objectives of this title and inserting essential for national defense requirements;

(ii)

in paragraph (2)—

(I)

by striking President may make provision for subsidy payments and inserting President, in consultation with the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund, may make provision for subsidy payments, for a period not to exceed 1 year,; and

(II)

by striking President determines and inserting Fund manager determines; and

(iii)

by adding at the end the following:

(3) Renewal of subsidy

The President may renew subsidy payments authorized under paragraph (2) for up to 180 days after submitting a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate that—

(A)

certifies that the subsidy payment is the most efficient means to ensure objectives described under paragraph (2); and

(B)

explains why market conditions do not allow for the achievement of the objectives.;

(G)

in paragraph (1)(C) of subsection (f), as so redesignated, by striking section 301, 302 and inserting section 201, 202;

(H)

in subsection (h), as so redesignated, by striking make provision and inserting exercise the authorities under title I and this title; and

(I)

by adding at the end the following:

(i) Waiver To expedite procurement

In exercising the authorities under section 201, section 202, or this section, the President may waive or revise relevant regulations for the purpose of expediting—

(1)

the procurement of critical technologies (as defined under section 316(a)) or critical minerals; or

(2)

the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1).

(j) Additional requirements
(1) Use of commercially available software

Software procured using funds appropriated pursuant to this Act shall be commercially available off-the-shelf software, unless no commercially available off-the-shelf software that meets the applicable requirements is available, more cost-effective, or is practicable to procure.

(2) Use of funds for skilled labor
(A) Identification of workforce and skills gaps

Each Federal agency to which the President has delegated authority under this Act shall identify any workforce gaps or skills gaps that affect the ability of the domestic industrial base to supply the materials and services necessary to satisfy the objectives set forth in section 2(b).

(B) Use of funds

With respect to an entity receiving financial assistance under title I or this title, the agency making such financial assistance may direct that a portion of the financial assistance be used to recruit, train, place, or retain workers in defense-critical occupations directly related to the activities funded by the assistance, if such entity keeps records of performance standards for workers recruited, trained, placed, or retained using such assistance.

(C) Information included in annual report

Each Federal agency to which the President has delegated authority under this Act shall include in the annual report of the Defense Production Act Committee—

(i)

a discussion of the identification required under subparagraph (A) and the authority provided under subparagraph (B);

(ii)

short-term and long-term recommendations for administrative or legislative action to reduce any workforce gaps or skills gaps identified by the agency, especially through the simulation required under section 206(c), including recommendations on workforce training programs to recruit, train, place, and retain workers in occupations critical to the national defense, including any apprenticeships.

(k) Special hiring authority for subject matter experts

Each agency represented on the Defense Production Act Committee may appoint, without regard to the provisions of sections 3309 through 3318 of title 5, subject matter experts directly to positions in the competitive service (as defined in section 2102 of that title) in the agency for the sole purpose of identifying, soliciting, evaluating, or approving activities that may receive financial assistance under this title.;

(6)

in section 204, as redesignated and moved by section 3(4)—

(A)

in subsection (a)—

(i)

by striking title III of this Act or any other provision of law, the President may and inserting this title, a member of the Defense Production Act Committee may, in consultation with the Executive Director of the Defense Production Act Committee,; and

(ii)

by inserting essential before materials;

(B)

in subsection (b)(1), by striking assure and inserting ensure; and

(C)

by adding at the end the following:

(c) Waiver To expedite procurement

The President may waive or revise relevant regulations for the purpose of expediting—

(1)

the procurement of critical technologies (as defined under section 316(a)) or critical minerals subject to the incentives described in subsection (a); or

(2)

the permitting of critical infrastructure required to produce or refine the critical technologies or critical minerals described in paragraph (1).

(7)

in section 205, as so redesignated—

(A)

in subsection (a), insert before the period at the end the following: , to be administered by the Secretary of the Treasury;

(B)

in subsection (b)—

(i)

in paragraph (1)—

(I)

by striking section 711 and inserting section 311; and

(II)

by striking and at the end;

(ii)

by redesignating paragraph (2) as paragraph (3);

(iii)

by inserting after paragraph (1) the following:

(2)

all moneys appropriated for activities pursuant to this title; and; and

(iv)

in paragraph (3), as so redesignated, by striking section 303 and inserting this title;

(C)

in subsection (e), by striking $750,000,000 each place such term appears and inserting $2,000,000,000;

(D)

by redesignating subsections (f) and (g) as subsections (g) and (h), respectively;

(E)

by inserting after subsection (e) the following:

(f) Waiver

The Executive Director of the Defense Production Act Committee may waive the requirement described under subsection (e) for up to 1 year at a time upon notifying the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate in writing that the waiver is in the national security interests of the United States.;

(F)

in subsection (g), as so redesignated—

(i)

by striking President shall designate a and inserting Secretary of the Treasury shall serve as;

(ii)

in paragraph (1), by striking subsection (g) and inserting subsection (h);

(iii)

in paragraph (2), by striking and at the end;

(iv)

in paragraph (3)—

(I)

by inserting and the Defense Production Act Committee after Congress; and

(II)

by striking the period at the end and inserting , including an analysis of the effectiveness of investments made during the previous fiscal year;; and

(v)

by adding at the end the following:

(4)

designating financial institutions as financial agents of the Federal Government, as appropriate, for the purposes of this title;

(5)

delegating authorities, as the Fund manager finds appropriate, to members of the Defense Production Act Committee; and

(6)

issuing rules and guidance regarding financing activities authorized by this title.; and

(G)

by adding at the end the following:

(i) Deferral

The Executive Director of the Defense Production Act Committee shall defer budget authority involving the Fund for an agency that has repeatedly failed to submit complete reports described under section 101(e) and 206(a).;

(8)

section 206, as so redesignated—

(A)

in the heading, by striking REPORTS ON EXERCISE OF AUTHORITIES and inserting DPA strategy;

(B)

by striking subsections (a) and (b) and inserting the following:

(a) In general

Not later than 180 days after the effective date of this subsection, and annually thereafter, the head of each agency to which the President has delegated authorities under title I or this title shall submit the report described under subsection (b) to the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund.

(b) DPA strategy

A report described under this subsection is a report that includes—

(1)

an assessment, in consultation with the Defense Production Act Committee and the private sector, of industrial base needs required by the head of the agency to meet the highest priorities arising from national defense requirements, as determined by the President;

(2)

a detailed strategy, timeline, and spending plan, in consultation with the Defense Production Act Committee, to deploy the authorities under title I and this title to address the needs identified under paragraph (1);

(3)

the results of the most recent simulation described in subsection (c);

(4)

a comprehensive list of actions (including all priority ratings, the exercise or non-exercise of such ratings and any allocations or financing) taken by the agency pursuant to the authorities since the previous report, and an explanation of how the actions support the strategy described under paragraph (2);

(5)

any use of authorities under section 308 or section 310 in support of the strategy described under paragraph (2);

(6)

a description of any waivers exercised pursuant to section 101(d)(2), section 107(c), or section 203(h); and

(7)

in the case of an action taken pursuant to title I or this title involving a business concern in Canada, the United Kingdom, or Australia, a justification of the necessity of the use of authorities under the applicable title.

(c) Strategy simulation

At least once every 5 years, the Defense Production Act Committee shall conduct a discussion-based simulation (commonly known as a table-top exercise) to determine the resources needed and the best use of the authorities under title I and this title to implement the strategy described in subsection (b)(2) contained in the most recent report required under subsection (a).;

(C)

in subsection (c)(2), by striking section 702(7)(B)(ii)(II)(bb) and inserting section 302(7)(B)(ii)(II)(bb); and

(D)

by adding at the end the following:

(d) Strategy on securing supply chains essential to national defense

The head of any relevant agency, as determined by the President, shall, in the first report submitted under subsection (a) after the date of enactment of this subsection, include in such report the following:

(1)

A detailed plan to ensure the supply of the following, to the extent necessary for national defense:

(A)

Medical materials (including drugs, devices, and biological products (as that term is defined in section 351 of the Public Health Service Act (42 U.S.C. 262)) to diagnose, cure, mitigate, treat, or prevent disease).

(B)

Critical minerals.

(C)

Naval shipbuilding capacity, materials, and components.

(2)

An analysis of vulnerabilities to existing supply chains for the materials, minerals, and capacity described in paragraph (1).

(3)

Any authorities provided by this Act to be used by the agency to ensure that essential components of such supply chains are not under the control of a foreign adversary.

(9)

in section 207, as redesignated and moved by section 3(5)—

(A)

in subsection (a), by inserting , to the extent required for national defense purposes, after President shall; and

(B)

in subsection (b)—

(i)

in paragraph (1)—

(I)

by striking title III and inserting this title; and

(II)

by striking advance and inserting advanced; and

(ii)

in paragraph (2)—

(I)

by striking title III and inserting this title; and

(II)

in subparagraph (C), by striking section 301, 302, or 303 and inserting section 201, 202, or 203; and

(10)

by adding at the end the following:

208. Prohibition on discrimination based on energy source

In using the authorities under this title, the President may not deny financial support pursuant to sections 201, 202, 203, or 204, other than for the production of energy, based on the energy source involved in the exploration, development, production, utilization, transportation, or sale of energy.

209. Limitation on eligibility for assistance

(a) In general

A covered entity is not eligible for assistance authorized under this title.

(b) Definitions

In this section:

(1) Covered entity

The term covered entity means an entity in which a covered individual directly or indirectly holds a significant interest. For the purpose of determining whether an entity is a covered entity, if securities of the entity are owned, controlled, or held by 2 or more individuals who are related as described in paragraph (2), such securities shall be aggregated.

(2) Covered individual

The term covered individual means—

(A)

the President, the Vice President, or a member of the Defense Production Act Committee; and

(B)

the spouse, child, son-in-law, or daughter-in-law of an individual described in subparagraph (A).

(3) Equity interest

The term equity interest means—

(A)

a share in an entity, without regard to whether the share is—

(i)

transferable; or

(ii)

classified as stock or anything similar;

(B)

a capital or profit interest in a limited liability company or partnership; and

(C)

a warrant or right (other than a right to convert) to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.

(4) Significant interest

The term significant interest means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.

Sec. 4. General provisions

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—

(1)

by redesignating title VII as title III;

(2)

by striking section 714 and 723;

(3)

by redesignating sections 701 through 711, section 713, sections 715 through 717, and sections 721 and 722 as sections 301 through 317, respectively;

(4)

in section 301, as so redesignated, in subsection (e), by inserting and consistent with national defense requirements after practicable;

(5)

in section 302, as so redesignated—

(A)

in paragraph (7)(B), by striking title III each place such term appears in a heading or text, and inserting title II; and

(B)

in paragraph (14)—

(i)

by inserting or section 319 of the Public Health Service Act, after Assistance Act; and

(ii)

by striking and critical infrastructure protection and restoration and inserting , critical infrastructure protection and restoration, and public health emergency preparedness and response activities;

(6)

in section 303, as so redesignated—

(A)

by striking Any officer and inserting the following:

(a) In general

Any officer;

(B)

by striking GS–18 of the General Schedule, as the President deems appropriate to carry out this Act and inserting senior-level positions described under section 5376 of title 5, United States Code, as the President deems appropriate to carry out title I or title II; and

(C)

by adding at the end the following:

(b) Outreach representative during a public health emergency
(1) In general

Consistent with the authorities in this title, the Administrator of the Federal Emergency Management Agency, in consultation with the Secretary of Health and Human Services, may designate or appoint, pursuant to subsection (a), an individual to be known as the Outreach Representative for the period of a public health emergency. Such individual shall—

(A)

be appointed from among individuals with substantial experience in the production or distribution of medical supplies or equipment; and

(B)

act as the Government-wide single point of contact during the public health emergency for outreach to manufacturing companies and their suppliers who may be interested in producing medical supplies or equipment.

(2) Encouraging partnerships

During the period of a public health emergency, the Outreach Representative shall seek to develop partnerships between companies, in coordination with any overall coordinator appointed by the President to oversee the response to the public health emergency, including through the exercise of the authorities delegated by the President under section 308.;

(7)

in section 304, as so redesignated—

(A)

by striking (a) In general.—;

(B)

by striking section 709 and subsection (b), the President may prescribe and inserting section 309 and subsection (b), the President, not later than 360 days after the date of enactment of the DPA Modernization Act of 2026, shall issue; and

(C)

by striking subsection (b);

(8)

in section 305, as so redesignated—

(A)

in subsection (a)—

(i)

by striking or appropriate, in his discretion,; and

(ii)

by striking in order and inserting essential;

(B)

in subsection (c), by striking $10,000 and inserting $100,000;

(C)

in subsection (d), by striking $10,000 and inserting $100,000; and

(D)

by adding at the end the following:

(f)

The authority of the President under this section may not be used to obtain sensitive personally identifiable information. In this subsection, the term sensitive personally identifiable information means personally identifiable information which, if lost, compromised, or disclosed without authorization, could result in substantial harm, embarrassment, inconvenience, or unfairness to an individual.

(9)

in section 306, as so redesignated—

(A)

in subsection (a), by striking he and inserting the President;

(B)

in subsection (b), by striking subpena each place such term appears and inserting subpoena; and

(C)

by adding at the end the following:

(c) Civil actions

A civil action challenging an action taken under this Act may be brought only in the United States Court of Appeals for the District of Columbia Circuit.;

(10)

in section 308, as so redesignated—

(A)

by striking he each place such term appears and inserting the President;

(B)

in subsection (c)(2), by striking not less than ten days; and

(C)

in subsection (e)—

(i)

by striking (1) The individual and inserting The individual;

(ii)

by striking section 553 of title 5, United States Code and inserting section 309; and

(iii)

by striking paragraphs (2) and (3);

(11)

in section 309, as so redesignated—

(A)

in subsection (a), by striking sections 551 through 559 and inserting sections 552 through 552b and sections 554 through 559; and

(B)

by striking subsection (c);

(12)

in section 310, as so redesignated—

(A)

by redesignating subsections (b) through (g) as subsections (a) through (f), respectively;

(B)

in subsection (a), as so redesignated—

(i)

in paragraph (1), by striking he each place such term appears and inserting the President; and

(ii)

in paragraph (6)—

(I)

by striking his or her and inserting the Director’s; and

(II)

by striking he or she and inserting the Director;

(C)

in subsection (b), as so redesignated—

(i)

by striking he and inserting the President; and

(ii)

by striking section 55a of title 5 of the United States Code. Individuals so employed may be compensated at rates not in excess of $50 per diem and while away from their homes or regular places of business they may be allowed transportation and not to exceed $15 per diem in lieu of subsistence and other expenses while so employed and inserting section 3109 of title 5, United States Code;

(D)

in subsection (e), as so redesignated, by striking $10,000 and inserting $100,000; and

(E)

in subsection (f), as so redesignated, by striking he and inserting the President;

(13)

in section 311, as so redesignated—

(A)

by striking he and inserting the President;

(B)

by striking $133,000,000 for fiscal year 2015 and inserting $250,000,000 for fiscal year 2025; and

(C)

by striking $117,000,000 for each of fiscal years 2020 through 2024 to carry out title III and inserting $5,000,000 for each of fiscal years 2026 through 2031 to the Executive Director of the Defense Production Act Committee and the Fund manager of the Defense Production Act Fund to carry out this Act;

(14)

in section 315, as so redesignated—

(A)

in subsection (a)—

(i)

by striking title III, and title VII (except sections 707, 708, and 721) and inserting title II, and title III (except sections 307, 308, and 316);

(ii)

by striking 2026 and inserting 2031; and

(iii)

by striking under title III and inserting under title II;

(B)

in subsection (c), by striking section 301 of this Act and inserting section 201; and

(C)

by striking subsection (d);

(15)

in section 316, as so redesignated, in subsection (l)(3)(D), by striking section 706(b) and inserting section 306(b); and

(16)

in section 317, as so redesignated—

(A)

in subsection (a), by striking plan for on and inserting plan for;

(B)

in subsection (b)—

(i)

in paragraph (1)—

(I)

in subparagraph (A), by striking and at the end;

(II)

in subparagraph (B), by striking the period at the end and inserting a semicolon; and

(III)

by adding at the end the following:

(C)

the Fund manager of the Defense Production Act Fund; and

(D)

the Director of the Office of Management and Budget.; and

(ii)

by striking paragraph (2) and inserting the following:

(2) Chairperson

The Assistant to the President for National Security Affairs shall serve as the non-voting Chairperson of the Committee.

(3) Executive Director

The Director of the Office of Management and Budget shall serve as the Executive Director of the Committee, who shall oversee interagency planning, coordination, and implementation of this Act.;

(C)

in subsection (c)—

(i)

by striking one person and inserting one or more persons; and

(ii)

by striking such person and inserting each such person;

(D)

in subsection (d)—

(i)

by inserting Chairperson of the before Committee shall;

(ii)

by striking signed by the Chairperson;

(iii)

by striking paragraphs (1) and (2) and inserting the following:

(1)

the most recent reports submitted pursuant to section 206;;

(iv)

by striking paragraph (5);

(v)

by redesignating paragraphs (3) and (4) as paragraphs (2) and (3), respectively;

(vi)

in paragraph (2), as so redesignated, by striking legislation and inserting legislative;

(vii)

in paragraph (3), as so redesignated, by striking recommendations for improving and inserting actions taken to improve;

(viii)

by inserting after paragraph (3), as so redesignated, the following:

(4)

an evaluation of the effectiveness of each relevant Federal agency in deploying the authorities under title I and title II to address the needs described under section 206(b)(2);

(5)

a summary of any steps taken to reduce fraud in transactions under this Act and a fraud risk assessment for all activities under undertaken under this Act; and; and

(ix)

in paragraph (4), as so redesignated, by striking each and inserting any;

(E)

by redesignating subsection (e) as subsection (f);

(F)

by inserting after subsection (d) the following:

(e) Defense Production Act Dashboard

The Executive Director of the Committee shall maintain a database that—

(1)

compiles and categorizes the actions reported under section 206(b)(3);

(2)

is available to all members of the Committee, for the purpose of more effective coordination of actions authorized this Act;

(3)

allows for real-time updates by the members of the Committee; and

(4)

is subject to appropriate information security, confidentiality, and classification requirements.

(f) Toolkit and online resources site
(1) In general

Not later than 365 days after the date of the enactment of this subsection, the Committee shall develop a toolkit and an online one-stop shop that allows Federal agencies to share information and resources with interested persons regarding the use of authorities under this Act (other than authorities under section 316 or title IV), including the following:

(A)

The process for solicitations under such authorities, including information on submitting offers and receiving assistance.

(B)

Opportunities under such authorities for business concerns, including small business concerns (as defined under section 3 of the Small Business Act (15 U.S.C. 632)), to participate in contracts and other funding mechanisms allowed such authorities.

(C)

A searchable description of awards, including an identification of the awardee and any priority rating for such award, made using such authorities.

(D)

A description of any voluntary agreements and executive reserves established, consistent with such authorities, including an identification of the parties engaged in each activity and the goals and terms of such activity, as the Committee determines appropriate.

(E)

The contact information for an individual at each Federal agency to which the President may delegate such authorities.

(2) Outreach

Not later than 365 days after the development of the toolkit required in paragraph (1), and every 6 months thereafter, the Committee shall develop a plan for each Federal agency to which the President has delegated authorities under this Act (other than authorities under section 316 or title IV) to conduct outreach activities to educate the private sector about the commercial opportunities available under such authorities.

(g) Meetings

The Committee shall meet at least twice per year. The Chairperson of the Committee may convene such other meetings as the Chairperson determines necessary.

(h) Subcommittees
(1) Emerging technology subcommittee
(A) Establishment

There is established within the Committee a Subcommittee on Emerging Technology.

(B) Activities

The Subcommittee on Emerging Technology shall analyze—

(i)

the effects or potential benefits of covered technology on activities determined essential to the national defense; and

(ii)

how covered technology can be used within a single industry or Federal agency, or across industries and Federal agencies, to improve efficiencies, encourage innovation, and address supply chain gaps;

(C) Report elements

The Subcommittee on Emerging Technology shall include, in the annual report of the Defense Production Act Committee, the analysis required under subparagraph (B)(ii), including a description of how covered technology can be used within a single industry or Federal agency, or across industries and Federal agencies, to improve efficiencies, conserve resources, and address supply chain gaps, in support of national defense priorities.

(D) Covered technology

For purposes of this paragraph, the Subcommittee shall establish a definition for the term covered technology and, in establishing such definition, shall consider including technologies in the fields of—

(i)

artificial intelligence and robotics;

(ii)

biotechnology;

(iii)

cryptography and quantum computing;

(iv)

materials science;

(v)

semiconductors; and

(vi)

space.

(2) General subcommittee authority

The Executive Director may establish and convene such additional subcommittees of the Committee as the Executive Director determines appropriate to improve coordination among member agencies of the Committee regarding particular activities authorized under this Act.; and

(G)

by adding at the end the following:

(g) Fraud risk management in transactions under this Act

Not later than 1 year after the date of the enactment of this subsection, the Defense Production Act Committee shall—

(1)

establish and implement processes and procedures consistent with leading practices in the Fraud Risk Framework established by the Government Accountability Office to combat fraud in transactions undertaken under this Act;

(2)

train personnel about the standards and practices established and implemented under paragraph (1); and

(3)

designate a point of contact within the Defense Production Act Committee to be responsible for managing issues relating to fraud, including coordinating with agencies to review fraud-related issues.

Sec. 5. Prohibition and notification on investments relating to covered national security transaction

The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—

(1)

by redesignating title VIII as title IV;

(2)

by redesignating sections 801 through 809 as sections 401 through 409, respectively;

(3)

in subsection (e)(1) of section 401, as so redesignated, by striking section 709 and inserting section 309;

(4)

in section 402, as so redesignated—

(A)

in subsection (a), by striking section 801(a) and inserting section 401(a);

(B)

in subsection (b)(1), by striking section 709 and inserting section 309; and

(C)

in subsection (c), by striking section 801 and inserting section 401;

(5)

in subsection (a) of section 403, as so redesignated—

(A)

in paragraph (1), by striking section 801(e) and 802(b) and inserting section 401(e) or 402(b);

(B)

in paragraph (2)—

(i)

by striking section 801(e) and 802(b) and inserting section 401(e) or 402(b); and

(ii)

by striking section 801(e) each place such term appears and inserting section 401(e); and

(C)

in paragraph (3), by striking section 802 and inserting section 402;

(6)

in section 407, as so redesignated—

(A)

in subsection (a), by striking section 801 or 802 and inserting section 401 or 402; and

(B)

in subsection (b), by striking subsection 801(a) each place such term appears and inserting section 401(a);

(7)

in subsection (b)(4) of section 408, as so redesignated, by striking section 805 and inserting section 405; and

(8)

in section 409, as so redesignated—

(A)

in paragraph (1), by striking section 804(d) and inserting section 404(d);

(B)

in paragraph (4)(A)(viii), by striking section 709 and inserting section 309;

(C)

in paragraph (7)—

(i)

in subparagraph (A), by striking section 801 and inserting section 401; and

(ii)

in subparagraph (B), by striking section 709 and inserting section 309; and

(D)

in paragraph (10)(B), by striking section 709 and inserting section 309.

Sec. 6. GAO study on stockpiling and long-lead items

(a) In general

The Comptroller General of the United States shall, not later than 1 year after the date of the enactment of this Act, begin a study on the efficacy of the current methods used by DPA agencies to address DPA-related long-lead items and related stockpiling challenges.

(b) Requirements

When conducting the study required under subsection (a), the Comptroller General shall—

(1)

examine how DPA-related long-lead items are currently procured and stockpiled by DPA agencies;

(2)

identify ways in which Federal agencies can work together to better address procurement and stockpiling of DPA-related long-lead items; and

(3)

provide legislative recommendations, including amendments to the DPA, to address procurement of DPA-related long-lead items and the stockpiling of such items.

(c) Definitions

In this section:

(1) DPA

The term DPA means the Defense Production Act of 1950.

(2) DPA agency

The term DPA agency means a Federal agency to which the President has delegated authority under the DPA.

(3) Long-lead item

The term long-lead item means components of a system or piece of equipment for which the times to design and fabricate are the longest, and therefore, to which an early commitment of funds may be desirable to complete the system by the earliest possible.

Sec. 7. Conforming amendments

(a) ADVANCE Act of 2024

Section 301(d) of division B of the ADVANCE Act of 2024 (42 U.S.C. 2133 note) is amended by striking section 712 and inserting section 316.

(b) American Homeownership and Economic Opportunity Act of 2000

Section 1102 of the American Homeownership and Economic Opportunity Act of 2000 (Public Law 106–569) is amended by striking paragraph (2).

(c) Energy Policy and Conservation Act

Section 252(h) of the Energy Policy and Conservation Act (42 U.S.C. 6272(h)) is amended by striking Section 708 and inserting Section 308.

(d) Further Consolidated Appropriations Act, 2020

Section 402(c) of the Further Consolidated Appropriations Act, 2020 (12 U.S.C. 635 note) is amended by striking section 721(a)(6)(A) and inserting section 316(a)(6)(A).

(e) John S. McCain National Defense Authorization Act for Fiscal Year 2019

Section 1792 of the John S. McCain National Defense Authorization Act for Fiscal Year 2019 (50 U.S.C. 4531 note) is hereby repealed.

(f) National Defense Authorization Act for Fiscal Years 1988 and 1989

Section 272 of the National Defense Authorization Act for Fiscal Years 1988 and 1989 (15 U.S.C. 4602(c)) is amended by striking section 719 of the Defense Production Act of 1950 (50 U.S.C. App. 2168),.

(g) National Defense Authorization Act for Fiscal Year 2018

Section 226 of the National Defense Authorization Act for Fiscal Year 2018 (50 U.S.C. 4531 note) is amended—

(1)

by striking subsection (e); and

(2)

by redesignating subsection (f) as subsection (e).

(h) National Defense Authorization Act for Fiscal Year 2020

Section 847(e) of the National Defense Authorization Act for Fiscal Year 2020 is amended by striking section 721 and inserting section 316.

(i) National Defense Authorization Act for Fiscal Year 2022

Effective on the date of enactment of the National Defense Authorization Act for Fiscal Year 2022, section 1702(k)(4) of such Act is amended by striking Defense Production Act and inserting Defense Production Act of 1950.

(j) Title 10, United States Code

Section 4891(a) of title 10, United States Code, is amended by striking section 721(a) and inserting section 316(a).

(k) William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021

Section 848(b)(2)(C) of the William M. (Mac) Thornberry National Defense Authorization Act for Fiscal Year 2021 (10 U.S.C. 4811 note) is amended by striking title III and inserting title II.