DPA Transparency Act of 2026
- Bill Number
- H.R. 8030
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2026-03-20: Referred to the House Committee on Financial Services.
- Last Updated
- 2026-06-11T23:41:32Z
AI-Generated Summary
H.R. 8030: DPA Transparency Act of 2026
Purpose
This bill amends the Defense Production Act of 1950 (DPA) to promote transparency and accountability by restricting assistance to certain entities linked to high-level officials, increasing financial penalties for violations, and requiring stronger fraud prevention measures.
Key Provisions
- Eligibility Limits (New Section 306 in Title III):
- Bars "covered entities" from receiving DPA assistance.
- Covered entity: A business where a "covered individual" (directly or indirectly) owns, controls, or holds at least 20% equity interest (e.g., shares, partnership stakes). Interests are aggregated if held by related covered individuals.
- Covered individual: President, Vice President, Defense Production Act Committee members, or their spouse, child, son-in-law, or daughter-in-law.
- Increased Penalties (Sections 103, 705, 710(f)):
- Raises maximum civil monetary penalties from $10,000 to $100,000 per violation.
- Fraud Risk Management (Amendments to Section 722):
- Requires annual reports to include fraud reduction steps and a fraud risk assessment for all DPA activities.
- Mandates the DPA Committee, within 1 year of enactment, to:
- Implement fraud prevention processes based on the Government Accountability Office's (GAO) "Framework for Managing Fraud Risks in Federal Programs."
- Train staff on these processes.
- Appoint a fraud coordinator to handle related issues.
- Technical Fix:
- Corrects a minor typo in the DPA's original short title.
Significant Changes to Existing Law
- Introduces first-ever eligibility restrictions tied to personal financial interests of top executive branch officials and their immediate family.
- Multiplies penalties by 10 times across key DPA enforcement sections.
- Adds mandatory fraud risk assessments, reporting, processes, training, and a dedicated coordinator—previously absent or voluntary.
Potential Impacts
- Government Agencies: DPA Committee and implementing agencies (e.g., Department of Defense) face new compliance burdens, including fraud training and reporting, potentially improving oversight but increasing administrative costs.
- Citizens and Businesses: Companies connected to covered individuals lose access to DPA aid (e.g., loans, contracts for critical production), reducing favoritism risks; higher penalties deter misuse.
- No direct international relations impact, as changes focus on domestic eligibility and enforcement.
Main Stakeholders Affected
- High-level officials: President, Vice President, DPA Committee members, and their families (must divest or avoid DPA aid for linked businesses).
- Businesses: Entities seeking DPA assistance (e.g., manufacturers of defense or critical goods) now subject to stricter eligibility checks.
- Federal Agencies: DPA Committee and enforcement bodies gain tools for fraud prevention but new responsibilities.
- Taxpayers: Enhanced safeguards against waste, fraud, and conflicts of interest in government spending.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens anti-corruption measures without new criminal offenses; relies on civil penalties and eligibility bars, enforceable via existing DPA authority.
- Constitutional: Aligns with ethics rules (e.g., emoluments clause concerns) by limiting self-dealing; no apparent free speech or due process issues.
- Political: Targets potential conflicts for executive leaders, promoting transparency amid DPA's expanded use (e.g., for supply chain security); minor short title fix is clerical.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Recent Actions
- 2026-03-20: Referred to the House Committee on Financial Services.
- 2026-03-20: Introduced in House
- 2026-03-20: Introduced in House
Bill Versions
- DPA Transparency Act of 2026 — issued 2026-03-20 — PDF (5 pages)