DPA Modernization Act of 2026

Bill Number: H.R. 7688
Origin Chamber: House
Congress: 119th Congress, Session 2
Policy Area: Government Operations and Politics
Status: Introduced
Latest Action: 2026-04-15: Placed on the Union Calendar, Calendar No. 529.
Last Updated: 2026-06-11T23:41:32Z

AI-Generated Summary

Purpose

The DPA Modernization Act of 2026 (H.R. 7688) modernizes and reauthorizes the Defense Production Act of 1950 (DPA) through 2031. It aims to strengthen U.S. industrial capacity for national defense, expand authorities for emergencies (including public health crises and natural disasters), improve supply chain resilience (especially for critical minerals and technologies), enhance interagency coordination, and restrict certain foreign investments.

Key Provisions

Title Reorganization: Restructures DPA into four titles:
Title I: Priorities and allocations for materials/services.
Title II: Expansion of productive capacity (loans, guarantees, purchases, subsidies).
Title III: General provisions (delegations, rules, reserves).
Title IV: Prohibitions/notifications on investments in national security-sensitive transactions.
Emergency Use Limits: DPA powers limited to declared national emergencies, disasters (under Stafford Act), or public health emergencies; civilian market controls capped at 1 year (extendable 180 days with congressional report).
Financial Tools:
Loan guarantees/loans up to $100M (doubled from prior caps).
Purchases/subsidies for critical needs, with new Critical Minerals Resilience Initiative for mining/processing outside foreign adversary control (includes NATO allies, major non-NATO partners).
Equity investments limited to <15% government ownership; must liquidate when feasible.
Defense Production Act Committee: Led by OMB Director (Executive Director) and National Security Advisor (Chairperson); requires annual strategies, dashboards, fraud risk management, and a public toolkit for private sector engagement.
National Defense Executive Reserve: Volunteer experts from private sector for federal roles during emergencies; training/exercises required.
Reporting/Transparency:
Agency DPA strategies, simulations (table-top exercises every 5 years), supply chain plans for medical materials, critical minerals, naval shipbuilding.
Annual congressional reports, testimony.
Restrictions:
No assistance to entities with ≥20% ownership by senior officials (President, VP, Committee members, relatives).
No denial of support based on energy source (except non-energy production).
CFIUS enhancements: Reviews foreign ag land buys by adversaries (China, Russia, etc.); adds Secretary of Agriculture.
Studies: GAO on stockpiling/long-lead items and Committee effectiveness; Subcommittee report on biomanufacturing reserve.

Significant Changes to Existing Law

Modernized Language/Structure: Replaces outdated "he" references; corrects short title, updates table of contents, redesignates sections.
Expanded Scope: Adds public health emergencies; prioritizes critical minerals/tech; allows regulatory waivers for expedited procurement/permitting.
Increased Funding/Authorities: DPA Fund cap raised to $2B (from $750M); annual funding $5M through 2031; skilled labor training allowed.
Oversight Enhancements: New subcommittees (e.g., Emerging Technology); real-time dashboard; fraud processes; congressional notifications/certifications.
Penalties: Fines raised to $100k (from $10k).
CFIUS Updates: Faster reporting, machine-readable data, ag land focus with sunset for non-adversaries.
Reauthorization: Extends to 2031; strikes obsolete sections.

Potential Impacts

Government Agencies: Streamlined coordination via Committee/dashboard; new reserves boost surge capacity; more reporting/budget scrutiny.
Citizens/Businesses: Faster emergency response (e.g., medical supplies); opportunities for contracts/training in critical sectors; protections against foreign adversary dominance in minerals/supply chains.
International Relations: Supports allies in minerals initiative; restricts adversary investments (ag land, tech); may strain ties with China/Russia/Iran/N. Korea.
Economy: Bolsters domestic manufacturing/shipbuilding; incentives for private investment; potential for workforce gaps via skills training.

Main Stakeholders

Federal Agencies: Treasury (Fund manager), Commerce/Defense/Homeland Security/DHS/FEMA/HHS (delegated authorities, reserves); CFIUS members (incl. Agriculture).
Private Sector: Manufacturers, miners/processors, small businesses in critical tech/minerals/medical/shipbuilding; energy firms (non-discrimination).
Congress: Receives reports, testimonies, certifications.
Citizens/Workers: Benefits from emergency preparedness, job training.
Foreign Entities: Adversaries face investment barriers; allies gain minerals cooperation.

Notable Legal, Constitutional, or Political Implications

Legal: Centralizes challenges in D.C. Circuit Court; aligns with APA (Administrative Procedure Act) for rulemaking; prohibits sensitive personal data collection.
Constitutional: Enhances executive emergency powers with congressional checks (reports, waivers, testimonies); no direct takings/eminent domain expansion.
Political: Bipartisan (cross-party sponsors); emphasizes national security vs. adversaries; promotes innovation (emerging tech) without overt bias; GAO studies ensure accountability.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Davidson, Warren [R-OH-8]

Cosponsors (4)

Rep. Beatty, Joyce [D-OH-3], Rep. Huizenga, Bill [R-MI-4], Rep. Vargas, Juan [D-CA-52], Rep. Nunn, Zachary [R-IA-3]

Recent Actions

2026-04-15: Placed on the Union Calendar, Calendar No. 529.
2026-04-15: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-611.
2026-04-15: Reported (Amended) by the Committee on Financial Services. H. Rept. 119-611.
2026-03-04: Ordered to be Reported by the Yeas and Nays: 41 - 0.
2026-03-04: Committee Consideration and Mark-up Session Held
2026-02-25: Referred to the House Committee on Financial Services.
2026-02-25: Introduced in House
2026-02-25: Introduced in House

Bill Versions

DPA Modernization Act of 2026 — issued 2026-02-25 — PDF (50 pages)
DPA Modernization Act of 2026 — issued 2026-04-15 — PDF (64 pages)