[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7688 Reported in House (RH)]

<DOC>





                                                 Union Calendar No. 529
119th CONGRESS
  2d Session
                                H. R. 7688

                          [Report No. 119-611]

 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

                             April 15, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
    [For text of introduced bill, see copy of bill as introduced on 
                           February 25, 2026]


_______________________________________________________________________

                                 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. FRONT MATTER.

    (a) Short Title Correction.--The first undesignated section of the 
the Defense Production Act of 1950 is amended, effective on the date of 
enactment of such Act, by striking ``cited as `the Defense'' and 
inserting ``cited as the `Defense''.
    (b) Table of Contents.--The table of contents for the Defense 
Production Act of 1950 is amended to read as follows:

                          ``TABLE OF CONTENTS

                 ``TITLE I. PRIORITIES AND ALLOCATIONS.

        ``TITLE II. EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY.

                    ``TITLE III. GENERAL PROVISIONS.

  ``TITLE IV. PROHIBITION AND NOTIFICATION ON INVESTMENTS RELATING TO 
               COVERED NATIONAL SECURITY TRANSACTIONS.''.

SEC. 3. 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
                    ``(ii) 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 whenever appropriate,'' and insert 
                        the following: ``section, in consultation with 
                        the Defense Production Act Committee--
            ``(1) shall--
                    ``(A) issue and, whenever appropriate, revise'';
                            (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. 4. 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 ``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'';
            (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 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
                                    (II) 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) by striking ``(1) In general.--'';
                            (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) in subparagraph (A), by striking ``; 
                        and'' at the end and inserting a period;
                            (v) by striking subparagraph (B); and
                            (vi) 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 ``the 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) Report on equity investments.--The Defense Production 
        Act Committee shall include, in each annual report of the 
        Committee required under section 317(d)--
                    ``(A) a description of any equity held by the 
                Government pursuant to the authorities of this Act;
                    ``(B) the rationale for, and valuation of, any such 
                holding, including--
                            ``(i) the expected contribution of the 
                        holding to the objectives of this Act; and
                            ``(ii) the estimated gain or loss in value 
                        of the holding since the preceding report.
            ``(9) 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 reports to the Committee on 
                Banking, Housing, and Urban Affairs of the Senate and 
                the Committee on Financial Services of the House of 
                Representatives that the entity is unable to obtain 
                additional equity investment from private sources on 
                commercially reasonable terms;
                    ``(B) shall, with respect to each equity investment 
                made in an entity by the member under this section, 
                transmit to the Committee on Banking, Housing, and 
                Urban Affairs of the Senate and the Committee on 
                Financial Services of the House of Representatives--
                            ``(i) not later than 10 days after making 
                        the equity investment, copies of all relevant 
                        documents concerning the terms of the 
                        investment, including any governance rights or 
                        contractual obligations; and
                            ``(ii) a certification that the equity 
                        investment advances the objectives of this Act, 
                        with a detailed explanation of the reasons 
                        therefor; and
                    ``(C) 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 Treaty 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); and
                            ``(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.'';
            (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), by inserting 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 (c), by inserting ``and section 
                318'' after ``this title'';
                    (D) in subsection (e), by striking ``$750,000,000'' 
                each place such term appears and inserting 
                ``$2,000,000,000'';
                    (E) by redesignating subsections (f) and (g) as 
                subsections (g) and (h), respectively;
                    (F) 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.'';
                    (G) 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
                    (H) 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 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 redesignating subsection (c) as subsection 
                (e);
                    (C) 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).
    ``(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.''; and
                    (D) in paragraph (2) of subsection (e), as so 
                redesignated, by striking ``section 
                702(7)(B)(ii)(II)(bb)'' and inserting ``section 
                302(7)(B)(ii)(II)(bb)''; and
            (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.--Notwithstanding any other provision of this Act 
or any other Act, 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. 5. 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 as sections 
        301 through 311, respectively;
            (4) by redesignating section 713 as section 312;
            (5) by redesignating section 715 as section 313;
            (6) by redesignating section 717 as section 315;
            (7) by redesignating sections 721 and 722 as sections 316 
        and 317, respectively;
            (8) in section 301, as so redesignated, in subsection (e), 
        by inserting ``and consistent with national defense 
        requirements'' after ``practicable'';
            (9) 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'';
            (10) 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.'';
            (11) 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);
            (12) 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.''.
            (13) 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.'';
            (14) 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);
            (15) 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);
            (16) in section 310, as so redesignated--
                    (A) by striking subsection (e);
                    (B) by redesignating subsections (b), (c), (d), 
                (f), and (g) as subsections (a) through (e), 
                respectively;
                    (C) 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'';
                    (D) 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'';
                    (E) in subsection (d), as so redesignated, by 
                striking ``$10,000'' and inserting ``$100,000''; and
                    (F) in subsection (e), as so redesignated, by 
                striking ``he'' each place such term appears and 
                inserting ``the President'';
            (17) 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 
                2026''; 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'';
            (18) by inserting after section 313, as so redesignated, 
        the following:

``SEC. 314. NATIONAL DEFENSE EXECUTIVE RESERVE.

    ``(a) Establishment.--The President shall establish a National 
Defense Executive Reserve (in this section referred to as the 
`Reserve').
    ``(b) Purpose.--The purpose of the Reserve shall be to improve the 
preparedness of the Federal Government for national defense emergencies 
by allowing private persons with unique expertise to volunteer, be 
trained for, and be temporarily employed in Federal positions within 
any of the Federal agencies that has established a Reserve unit under 
subsection (c) that may be necessary during periods of national defense 
emergency, as determined by the President.
    ``(c) Reserve Units.--
            ``(1) In general.--The President shall require the heads of 
        each of the following agencies to establish a unit of the 
        Reserve within the applicable agency:
                    ``(A) The Department of Commerce.
                    ``(B) The Department of Defense.
                    ``(C) The Department of Homeland Security.
                    ``(D) Such other agencies as the President 
                determines appropriate.
            ``(2) Activities of reserve units.--Activities of such 
        Reserve units within each agency shall be aligned with the 
        contents of the reports required under--
                    ``(A) section 203(j)(2)(C), related to workforce 
                and skills gaps;
                    ``(B) section 206(b), related to overall strategy;
                    ``(C) section 206(d), related to the strategy on 
                securing supply chains essential to national defense; 
                and
                    ``(D) section 317(h)(1), the report from the 
                Subcommittee on Emerging Technology.
            ``(3) Deadline.--The units of the Reserve within the 
        agencies described under subparagraphs (A), (B), and (C) shall 
        be established not later than 180 days after the issuance of 
        the final rules required under subsection (f).
    ``(d) Training.--The President may, without activating the Reserve, 
allow for periodic training and exercises to prepare the Reserve for 
duty during an activation.
    ``(e) Rulemaking.--Not later than 360 days after the date of 
enactment of this section, the Director of the Office of Personnel 
Management, in consultation with the Secretary of Commerce, the 
Secretary of Defense, and the Secretary of Homeland Security, shall 
issue rules, in accordance with section 553 of title 5, United States 
Code, to provide--
            ``(1) criteria for determining the number of positions in 
        and organization of Reserve units;
            ``(2) criteria for determining the appropriate level of 
        seniority and job classifications of Reserve positions;
            ``(3) the advertisement of the Reserve to the public to 
        generate interest in volunteers;
            ``(4) the selection of individuals for the Reserve and the 
        job assignment process;
            ``(5) the appointment authorities to be used by the head of 
        an agency during an activation of the applicable Reserve unit;
            ``(6) the appropriate levels of compensation for private 
        individuals for service in the Reserve, dependent on the 
        qualifications and expected roles of the individuals;
            ``(7) the appropriate levels of compensation for private 
        individuals for service in the Reserve for additional expenses, 
        such as travel and accommodation, to fulfill the 
        responsibilities in the Reserve, including during training and 
        exercise;
            ``(8) additional incentives to be provided to private 
        individuals to encourage participation in the Reserve;
            ``(9) whether and how to issue security clearances to 
        individuals selected to serve in the Reserve, both prior to and 
        during activation;
            ``(10) the frequency and content of training and exercises 
        for the Reserve;
            ``(11) the appropriate interaction between permanent 
        Government employees and individuals in the Reserve during 
        training, exercises, and activations of the Reserve;
            ``(12) the appointment of permanent Government employees to 
        manage the Reserve for each agency with a Reserve unit, both 
        prior to and during activation;
            ``(13) practices to ensure that ethics and conflict-of-
        interest standards are implemented and maintained throughout 
        the activities of the Reserve; and
            ``(14) all other matters necessary to effectively manage 
        the Reserve, as determined by the Director of the Office of 
        Personnel Management.
    ``(f) Additional Guidance.--The Director of the Office of Personnel 
Management may issue any additional internal guidance as the Director 
of the Office of Personnel determines is necessary to supplement the 
rules issued under subsection (e).
    ``(g) Employment Protection.--For purposes of chapter 43 of title 
38, United States Code, an individual absent from a position of 
employment due to an appointment into service in the Reserve shall be 
subject to the same employment and reemployment protections as are 
provided under such chapter for an individual absent from a position of 
employment due to an appointment into service in the Federal Emergency 
Management Agency as intermittent personnel under section 306(b)(1) of 
the Robert T. Stafford Disaster Relief and Emergency Assistance Act.'';
            (19) 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);
            (20) in section 316, as so redesignated--
                    (A) in subsection (a)(4)(C)(i)(II), by striking 
                ``in `urbanized areas', as'' and inserting ``in an 
                `urbanized area', or equivalent term, as'';
                    (B) in subsection (b)--
                            (i) in paragraph (1), by adding at the end 
                        the following:
                    ``(I) Consideration of certain agricultural land 
                transactions.--
                            ``(i) In general.--After receiving 
                        notification from the Secretary of Agriculture 
                        of a reportable agricultural land transaction, 
                        the Committee shall determine--
                                    ``(I) whether the transaction is a 
                                covered transaction; and
                                    ``(II) if the Committee determines 
                                that the transaction is a covered 
                                transaction, whether the Committee 
                                should initiate a review pursuant to 
                                subparagraph (D), or take another 
                                action authorized under this section, 
                                with respect to the reportable 
                                agricultural land transaction.
                            ``(ii) Reportable agricultural land 
                        transaction..--In this subparagraph, the term 
                        `reportable agricultural land transaction' 
                        means a transaction--
                                    ``(I) that the Secretary of 
                                Agriculture has reason to believe is a 
                                covered transaction, based on 
                                information from or in cooperation with 
                                the intelligence community;
                                    ``(II) that involves the 
                                acquisition of an interest in 
                                agricultural land by a foreign person 
                                of the People's Republic of China, the 
                                Democratic People's Republic of Korea, 
                                the Russian Federation, or the Islamic 
                                Republic of Iran; and
                                    ``(III) with respect to which a 
                                person is required to submit a report 
                                to the Secretary of Agriculture under 
                                section 2(a) of the Agricultural 
                                Foreign Investment Disclosure Act of 
                                1978.
                            ``(iii) Sunset.--The requirements under 
                        this subparagraph shall terminate, with respect 
                        to a foreign person of the respective foreign 
                        country, on the date that the People's Republic 
                        of China, the Democratic People's Republic of 
                        Korea, the Russian Federation, or the Islamic 
                        Republic of Iran, as the case may be, is 
                        removed from the list of foreign adversaries in 
                        section 791.4 of title 15, Code of Federal 
                        Regulations.'';
                            (ii) in paragraph (3)--
                                    (I) in subparagraph (A), by 
                                striking ``Upon completion of'' and 
                                inserting ``Not later than the seventh 
                                day of the month following the month in 
                                which the Committee completed''; and
                                    (II) in subparagraph (C)(i)--
                                            (aa) by striking ``shall be 
                                        submitted to the members'' and 
                                        inserting ``shall be submitted 
                                        in a searchable, machine-
                                        readable format to the 
                                        members'';
                                            (bb) in subclause (II), by 
                                        striking ``and'' at the end;
                                            (cc) by redesignating 
                                        subclause (III) as subclause 
                                        (IV); and
                                            (dd) by inserting after 
                                        subclause (II) the following:
                                    ``(III) the date on which the 
                                transaction was accepted by the 
                                Committee and the date on which 
                                transaction parties were notified of 
                                the completion by the Committee of the 
                                Committee's review of the transaction 
                                pursuant to subsection (b)(6); and'';
                    (C) in subsection (d)(4)(A), by striking ``assets 
                as a result'' and inserting ``assets or in real estate 
                in the United States as a result'';
                    (D) in subsection (k), by adding at the end the 
                following:
            ``(8) Inclusion of the secretary of agriculture.--The 
        Secretary of Agriculture shall be a member of the Committee 
        with respect to a covered transaction that involves--
                    ``(A) agricultural land;
                    ``(B) agriculture biotechnology; or
                    ``(C) the agriculture industry, including 
                agricultural transportation, storage, and 
                processing.'';
                    (E) in subsection (l)(3)(D), by striking ``section 
                706(b)'' and inserting ``section 306(b)'';
                    (F) in subsection (o)--
                            (i) in paragraph (1), by striking ``March 
                        31'' and inserting ``September 30''; and
                            (ii) in paragraph (2), by striking ``the 
                        date that is 7 years after the date of the 
                        enactment of the Foreign Investment Risk Review 
                        Modernization Act of 2018'' and inserting 
                        ``November 30, 2030''; and
                    (G) in subsection (p)(2), by striking ``through 
                2023 $20,000,000'' and inserting ``through 2030 
                $21,000,000''; and
            (21) 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), (4), 
                        and (6) as paragraphs (2), (3), and (7), 
                        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 undertaken under this Act;
            ``(6) a summary of activities by the National Defense 
        Executive Reserve, along with any recommendations for 
        regulatory and legislative improvements to support the National 
        Defense Executive Reserve; and''; and
                            (ix) in paragraph (7), as so redesignated, 
                        by striking ``each'' and inserting ``any'';
                    (E) by redesignating subsection (e) as subsection 
                (k); and
                    (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)(4);
            ``(2) is available to all members of the Committee, for the 
        purpose of more effective coordination of actions authorized by 
        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.
    ``(i) 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.
    ``(j) Testimony.--The following persons, or their designees, shall 
provide testimony to the Committee on Financial Services of the House 
of Representatives and the Committee on Banking, Housing, and Urban 
Affairs of the Senate not later than 90 days following submission of 
the report described under subsection (d):
            ``(1) The Executive Director.
            ``(2) Upon request of either such committee, the head of 
        any Federal agency to which the President has delegated 
        authority under this Act.''.

SEC. 6. 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) or 
                        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)--
                            (i) in paragraph (3), by striking ``section 
                        801(a)'' and inserting ``section 401(a)''; and
                            (ii) in paragraph (4), by striking 
                        ``subsection 801(a)'' 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. 7. STUDIES AND REPORTS.

    (a) GAO Study on Stockpiling and Long-lead Items.--
            (1) 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.
            (2) Requirements.--When conducting the study required under 
        paragraph (1), the Comptroller General shall--
                    (A) examine how DPA-related long-lead items are 
                currently procured and stockpiled by DPA agencies;
                    (B) identify ways in which Federal agencies can 
                work together to better address procurement and 
                stockpiling of DPA-related long-lead items; and
                    (C) provide legislative recommendations, including 
                amendments to the DPA, to address procurement of DPA-
                related long-lead items and the stockpiling of such 
                items.
            (3) Definitions.--In this subsection:
                    (A) DPA.--The term ``DPA'' means the Defense 
                Production Act of 1950.
                    (B) DPA agency.--The term ``DPA agency'' means a 
                Federal agency to which the President has delegated 
                authority under the DPA.
                    (C) 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.
    (b) GAO Report on the Defense Production Act Committee.--Not later 
than 2 years after the date of the enactment of this Act, the 
Comptroller General of the United States shall issue 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 
includes--
            (1) an assessment of the quality of coordination and 
        planning for the effective use of the authorities provided 
        under section 317 of the Defense Production Act of 1950;
            (2) an identification of authorities and requirements 
        provided for under Section 317 the Defense Production Act of 
        1950 that may call for greater use or compliance by the Defense 
        Production Act Committee; and
            (3) any other recommendations relating to how the Defense 
        Production Act Committee could improve the Committee's 
        coordination and planning.
    (c) Subcommittee on Emerging Technology Report on Potential 
Strategic Reserve of Biological Inputs.--The Subcommittee on Emerging 
Technology of the Defense Production Act Committee shall, not later 
than 18 months after the date of the enactment of this Act, submit to 
Congress an evaluation of the potential benefits and drawbacks, and any 
resources required, in establishing a strategic reserve of critical 
biomanufacturing essential to national defense activities under the 
Defense Production Act of 1950.

SEC. 8. 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) 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),''.
    (f) 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''.
    (g) 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''.
    (h) Title 10, United States Code.--Section 4891(b)(1) of title 10, 
United States Code, is amended by striking ``If the Secretary of 
Defense is acting as a designee of the President under section 721(a) 
of the Defense Production Act of 1950 (50 U.S.C. 4565(a)) and if the 
Secretary determines'' and inserting ``If the Committee on Foreign 
Investment in the United States determines, under section 316 of the 
Defense Production Act of 1950 (50 U.S.C. 4565),''.
    (i) 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''.
                                                 Union Calendar No. 529

119th CONGRESS

  2d Session

                               H. R. 7688

                          [Report No. 119-611]

_______________________________________________________________________

                                 A BILL

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

_______________________________________________________________________

                             April 15, 2026

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed