§98e — Title 50 War and National Defense | U.S. Code

Summary

The National Defense Stockpile Manager must buy the strategic and critical materials the law names and keep them safe, stored, and in good condition. The manager must upgrade or process materials when needed so they are ready for storage or quick use in an emergency. The manager must rotate stock to avoid spoilage or becoming outdated, recover available materials from other federal agencies, and sell or get rid of items that are extra or will lose value. Disposals must follow the latest annual materials plan sent to the congressional defense committees and those committees must be told as the law requires. Federal buying and selling rules and, when possible, competition must be used. The President may allow barter, waive some rules with 30 days’ notice to the armed services committees, lease storage up to 20 years, or loan materials to Energy or the military with 30 days’ notice and repayment assurance. The manager must run a pilot using commercial best practices, brief the defense committees soon and yearly, and end the pilot 5 years after December 22, 2023. Recovery programs should aim to make money unless national defense makes that impossible.

Title 50, §98e

War and National Defense — Source: USLM XML via OLRC

(a)The National Defense Stockpile Manager shall—

(1)acquire the materials determined under section 98b(a) of this title to be strategic and critical materials;

(2)provide for the proper storage, security, and maintenance of materials in the stockpile;

(3)provide for the upgrading, refining, or processing of any material in the stockpile (notwithstanding any intermediate stockpile quantity established for such material) when necessary to convert such material into a form more suitable for storage, subsequent disposition, and immediate use in a national emergency;

(4)provide for the rotation of any material in the stockpile when necessary to prevent deterioration or technological obsolescence of such material by replacement of such material with an equivalent quantity of substantially the same material or better material;

(5)provide for the appropriate recovery of any strategic and critical materials under section 98b(a) of this title that may be available from other Federal agencies, either directly as materials or embedded in excess-to-need, end-of-life items, or waste streams;

(6)subject to the notification required by subsection (d)(2), provide for the timely disposal of materials in the stockpile that (A) are excess to stockpile requirements, and (B) may cause a loss to the Government if allowed to deteriorate; and

(7)dispose of materials in the stockpile in accordance with the most recent annual materials plan submitted to the congressional defense committees (as defined in section 101(a) of title 10) under section 98h–2(b)(1)(G) of this title and notify the congressional defense committees of such disposals as required by section 98d(b)(2) of this title.

(b)Except as provided in subsections (c) and (d), acquisition of strategic and critical materials under this subchapter shall be made in accordance with established Federal procurement practices, and, except as provided in subsections (c) and (d) and in section 98f(a) of this title, disposal of strategic and critical materials from the stockpile shall be made in accordance with the next sentence. To the maximum extent feasible—

(1)competitive procedures shall be used in the acquisition and disposal of such materials; and

(2)efforts shall be made in the acquisition and disposal of such materials to consult with producers and processors of such materials to avoid undue disruption of the usual markets of producers, processors, and consumers of such materials and to protect the United States against avoidable loss.

(c)(1)The President shall encourage the use of barter in the acquisition under subsection (a)(1) of strategic and critical materials for, and the disposal under subsection (a)(6) or (a)(7) of materials from, the stockpile when acquisition or disposal by barter is authorized by law and is practical and in the best interest of the United States.

(2)Materials in the stockpile (the disposition of which is authorized by paragraph (3) to finance the upgrading, refining, or processing of a material in the stockpile, or is otherwise authorized by law) shall be available for transfer at fair market value as payment for expenses (including transportation and other incidental expenses) of acquisition of materials, or of upgrading, refining, processing, or rotating materials, under this subchapter.

(3)Notwithstanding section 98b(c) of this title or any other provision of law, whenever the President provides under subsection (a)(3) for the upgrading, refining, or processing of a material in the stockpile to convert that material into a form more suitable for storage, subsequent disposition, and immediate use in a national emergency, the President may barter a portion of the same material (or any other material in the stockpile that is authorized for disposal) to finance that upgrading, refining, or processing.

(4)To the extent otherwise authorized by law, property owned by the United States may be bartered for materials needed for the stockpile.

(d)(1)The President may waive the applicability of any provision of the first sentence of subsection (b) to any acquisition of material for, or disposal of material from, the stockpile. Whenever the President waives any such provision with respect to any such acquisition or disposal, or whenever the President determines that the application of paragraph (1) or (2) of such subsection to a particular acquisition or disposal is not feasible, the President shall notify the Committee on Armed Services of the Senate and the Committee on Armed Services of the House of Representatives in writing of the proposed acquisition or disposal at least 30 days before any obligation of the United States is incurred in connection with such acquisition or disposal and shall include in such notification the reasons for not complying with any provision of such subsection.

(2)Materials in the stockpile may be disposed of under subsection (a)(6) only if such congressional committees are notified in writing of the proposed disposal at least 30 days before any obligation of the United States is incurred in connection with such disposal.

(e)The President may acquire leasehold interests in property, for periods not in excess of twenty years, for storage, security, and maintenance of materials in the stockpile.

(f)The President may loan stockpile materials to the Department of Energy or the military departments if the President—

(1)has a reasonable assurance that stockpile materials of a similar or superior quantity and quality to the materials loaned will be returned to the stockpile or paid for;

(2)notifies the congressional defense committees (as defined in section 101(a) of title 10), in writing, not less than 30 days before making any such loan; and

(3)includes in the written notification under paragraph (2) sufficient support for the assurance described in paragraph (1).

(g)(1)The National Defense Stockpile Manager shall establish a pilot program to use, to the maximum extent practicable, commercial best practices in the acquisition and disposal of strategic and critical materials for the stockpile.

(2)(A)The Stockpile Manager shall brief the congressional defense committees (as defined in section 101(a) of title 10)—

(i)as soon as practicable after the establishment of the pilot program under paragraph (1); and

(ii)annually thereafter until the termination of the pilot program under paragraph (3).

(B)The briefing required by subparagraph (A)(i) shall address—

(i)the commercial best practices selected for use under the pilot program;

(ii)how the Stockpile Manager determined which commercial best practices to select; and

(iii)the plan of the Stockpile Manager for using such practices.

(C)Each briefing required by subparagraph (A)(ii) shall provide a summary of—

(i)how the Stockpile Manager has used commercial best practices under the pilot program during the year preceding the briefing;

(ii)how many times the Stockpile Manager has used such practices;

(iii)the outcome of each use of such practices; and

(iv)any savings achieved or lessons learned as a result of the use of such practices.

(3)The pilot program established under paragraph (1) shall terminate effective on the date that is 5 years after December 22, 2023.

(h)Except to the extent necessary for the national defense, the National Defense Stockpile Manager shall ensure that each program for the recovery of strategic and critical materials implemented under subsection (a)(5) operates in a manner designed to achieve positive cash flow.

Notes & Related Subsidiaries

Editorial Notes

Prior Provisions

A prior section 98e, acts

June 7, 1939, ch. 190, § 6, 53 Stat. 812;

May 28, 1941, ch. 135, 55 Stat. 206;

July 23, 1946, ch. 590, 60 Stat. 598; Ex. Ord. No. 9809, eff. Dec. 12, 1946, 11 F.R. 14281; Ex. Ord. No. 9841, eff. Apr. 23, 1947, 12 F.R. 2645;

June 30, 1949, ch. 288, title I, § 105, 63 Stat. 381; 1953 Reorg. Plan No. 3, § 2(b), eff.

June 12, 1953, 18 F.R. 3375, 67 Stat. 634; 1958 Reorg. Plan No. 1, § 2, eff.

July 1, 1958, 23 F.R. 4991, 72 Stat. 1799; Oct. 21, 1968, Pub. L. 90–608, § 402, 82 Stat. 1194; Ex. Ord. No. 11725, § 3, eff.

June 29, 1973, 38 F.R. 17175, related to transfer of surplus materials to stock piles, prior to repeal by section 2(a) of Pub. L. 96–41. See section 98c(b) of this title. Provisions similar to those in this section were contained in former section 98b of this title prior to repeal by Pub. L. 96–41.

Amendments

2025—Subsec. (a). Pub. L. 119–60, § 1411(b)(2)(A), substituted “National Defense Stockpile Manager” for “President” in introductory provisions. Subsec. (a)(7). Pub. L. 119–60, § 1411(b)(2)(B), amended par. (7) generally. Prior to amendment, par. (7) read as follows: “subject to the provisions of section 98d(b) of this title, dispose of materials in the stockpile the disposal of which is specifically authorized by law.” Subsec. (d). Pub. L. 119–60, § 1411(c), substituted “30 days” for “45 days” in pars. (1) and (2). 2023—Subsec. (a)(5). Pub. L. 118–31, § 1411(b)(1), substituted “from other Federal agencies, either directly as materials or embedded in excess-to-need, end-of-life items, or waste streams;” for “from excess materials made available for recovery purposes by other Federal agencies;”. Subsec. (c)(1). Pub. L. 118–31, § 1411(b)(2), substituted “subsection (a)(6) or (a)(7)” for “subsection (a)(5) or (a)(6)”. Subsec. (d)(2). Pub. L. 118–31, § 1411(b)(3), substituted “subsection (a)(6)” for “subsection (a)(5)”. Subsecs. (g), (h). Pub. L. 118–31, § 1411(b)(4), added subsecs. (g) and (h). 2021—Subsec. (b)(2). Pub. L. 117–81, § 1411(1), inserted “to consult with producers and processors of such materials” before “to avoid”. Subsec. (f). Pub. L. 117–81, § 1412, added subsec. (f). 2013—Subsec. (a)(5) to (7). Pub. L. 113–66 added par. (5) and redesignated former pars. (5) and (6) as (6) and (7), respectively. 1999—Subsec. (d)(1). Pub. L. 106–65 substituted “and the Committee on Armed Services” for “and the Committee on National Security”. 1997—Subsec. (b). Pub. L. 105–85, in first sentence, substituted “strategic and critical materials from the stockpile shall be made in accordance with the next sentence” for “materials from the stockpile shall be made by formal advertising or competitive negotiation procedures”. 1996—Subsec. (d)(1). Pub. L. 104–201, § 3312(b), substituted “45 days” for “thirty days”. Pub. L. 104–106, § 1502(e)(1)(A), substituted “Committee on Armed Services of the Senate and the Committee on National Security of the House of Representatives” for “Committees on Armed Services of the Senate and House of Representatives”. Subsec. (d)(2). Pub. L. 104–201, § 3312(c), substituted “45 days” for “thirty days”. Pub. L. 104–106, § 1502(e)(1)(B), substituted “such congressional committees” for “the Committees on Armed Services of the Senate and House of Representatives”. 1994—Subsec. (a)(4). Pub. L. 103–337 inserted “or technological obsolescence” after “deterioration”. 1991—Subsec. (a)(4). Pub. L. 102–190 inserted before semicolon “or better material”. 1990—Subsec. (a)(3). Pub. L. 101–510, § 3301(b)(1), substituted “upgrading, refining,” for “refining”, inserted “(notwithstanding any intermediate stockpile quantity established for such material)” after “stockpile”, and substituted “storage, subsequent disposition, and immediate use in a national emergency” for “storage and subsequent disposition”. Subsec. (c)(1). Pub. L. 101–510, § 3301(b)(2), inserted “under subsection (a)(1)” after “the acquisition” and “under subsection (a)(5) or (a)(6)” after “the disposal”. Subsec. (c)(2). Pub. L. 101–510, § 3301(b)(3), substituted “(the disposition of which is authorized by paragraph (3) to finance the upgrading, refining, or processing of a material in the stockpile, or is otherwise authorized by law)” for “, the disposition of which is authorized by law,” and “of upgrading, refining” for “of refining”. Subsec. (c)(3), (4). Pub. L. 101–510, § 3301(a), added par. (3) and redesignated former par. (3) as (4). 1989—Subsec. (b). Pub. L. 101–189, § 3314(1), inserted “and” at end of par. (1), substituted a period for “; and” at end of par. (2), and struck out par. (3) which read as follows: “disposal of such materials shall be made for domestic consumption.” Subsec. (d)(1). Pub. L. 101–189, § 3314(2), substituted “paragraph (1) or (2)” for “paragraph (1), (2), or (3)”. 1986—Subsec. (a)(3). Pub. L. 99–661 substituted “a form more” for “the form most”. 1981—Subsec. (a)(6). Pub. L. 97–35 inserted reference to section 98d(b) of this title.

Statutory Notes and Related Subsidiaries

Recycling for Critical Minerals Pub. L. 119–60, div. A, title XIV, § 1412, Dec. 18, 2025, 139 Stat. 1135, provided that: “(a) In General.—The Under Secretary of Defense for Acquisition and Sustainment, in coordination with the Director of the Defense Logistics Agency, shall expand the recovery and reuse of strategic and critical materials under the Strategic Material Recovery and Reuse Program of the Defense Logistics Agency established pursuant to section 6(a)(5) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98e(a)(5)) (in this section referred to as the ‘Program’). “(b) Briefing on Expansion.—Not later than March 1, 2026, the Director of the Defense Logistics Agency shall provide to the Committees on Armed Services of the Senate and House of Representatives a briefing on a plan for expansion of the Program which shall include—“(1) a list of strategic and critical materials that are determined to be in shortfall in the National Defense Stockpile in the most recent report on stockpile requirements submitted to Congress under section 14(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98h–5(a)) that will be prioritized for inclusion in the Program; “(2) a description of resources required to include the additional strategic and critical materials identified under paragraph (1) in the Program; “(3) any barriers to expansion of the Program; and “(4) best practices from the efforts of the Director under the Program with respect to optical-grade germanium that can be implemented to expand the Program. “(c) Strategic and Critical Materials Defined.—In this section, the term ‘strategic and critical materials’ means materials determined to be strategic and critical materials under section 3(a) of the Strategic and Critical Materials Stock Piling Act (50 U.S.C. 98b(a)).” Acquisition of Depleted Uranium for National Defense Stockpile Pub. L. 101–511, title VIII, § 8095, Nov. 5, 1990, 104 Stat. 1896, directed President, using funds available in National Defense Stockpile Transaction Fund, to acquire over a period of ten years from current domestic sources not less than thirty-six million pounds of depleted uranium to be held in National Defense Stockpile, prior to repeal by Pub. L. 102–172, title VIII, § 8027A, Nov. 26, 1991, 105 Stat. 1177.

Executive Documents

Delegation of Functions Functions of President under this section delegated to Secretary of Defense by section 1 of Ex. Ord. No. 12636, Feb. 25, 1988, 53 F.R. 6114, set out under section 98 of this title.

§98e Stockpile management