[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7688 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7688
To modernize and reauthorize the Defense Production Act of 1950, and
for other purposes.
_______________________________________________________________________
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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
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:
``SEC. 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.
``SEC. 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''.
<all>