DPA Modernization Act of 2026
Sponsored By: Representative Davidson
In Committee
Summary
Modernizes and centralizes the Defense Production Act by reorganizing its structure, shifting priority and allocation powers toward the President, and creating a dedicated Defense Production Act Fund to finance loans, guarantees, subsidies, purchases, and limited equity investments.
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- Manufacturers and supply chains
- Creates a Fund with a Fund manager who can lend, guarantee purchases, provide subsidies, and take equity stakes to shore up domestic production. Government equity is capped at 15 percent and some loan guarantees must be at least $100 million.
- Workers and surge staffing
- Requires agencies to identify workforce gaps and lets programs use assistance to recruit, train, place, or retain defense‑critical workers. It also establishes a National Defense Executive Reserve with final rules due in 360 days and units set up within 180 days after those rules.
- Oversight, eligibility, and foreign transactions
- Expands GAO and agency reporting and requires annual and committee reporting on major investments. The bill limits assistance to entities tied to covered officials using a 20 percent "significant interest" test and adds reporting and review for agricultural land deals involving China, the Democratic People’s Republic of Korea, Russia, and Iran.
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Bill Overview
Analyzed Economic Effects
9 provisions identified: 5 benefits, 2 costs, 2 mixed.
Bigger Title II funding and rules
If enacted, Title II funding would rise from $750 million to $2 billion. The Secretary of the Treasury would administer those funds. The bill would set $250 million for fiscal year 2025 and $5 million per year for 2026–2031 for program leadership. Loan guarantees would need the Fund manager's concurrence and must be coordinated with the Committee. Loans would carry a first‑priority lien that attaches on disbursement and is senior to other liens.
Privacy and anti-fraud protections
If enacted, the DPA Committee would set up fraud risk processes consistent with GAO standards within one year, train staff, and name a fraud point of contact. The bill would bar the President's DPA authority from being used to obtain sensitive personally identifiable information as defined in the bill.
Limits on federal market controls
If enacted, Title I priorities and allocations could be used only for a presidential national emergency, a Stafford Act disaster, or a public health emergency under section 319. The bill would bar government control of general civilian‑market distribution for more than one year. The President could add one 180‑day extension only after a non‑delegable report to Congress certifying it is essential for defense.
Critical minerals supply support
If enacted, the bill would create a Critical Minerals Resilience Initiative to make grants, purchases, and purchase commitments in the U.S., NATO members, or major non‑NATO allies. The program would aim to stop foreign adversaries from dominating mining or processing. The bill would also expand waiver authorities to speed procurement and permitting for critical technologies and minerals and let the Executive Director waive a named requirement for up to one year with congressional notice.
Hiring and workforce training support
If enacted, each agency using DPA authority would have to identify workforce and skills gaps affecting the domestic industrial base. Agencies giving financial assistance could require part of funds be used to recruit, train, place, or retain workers tied to those projects. Recipients would have to keep records showing worker performance. Agencies must report gaps and apprenticeship ideas in the Committee's annual report.
Small business access and procurement rules
If enacted, the DPA Committee would build a toolkit and an online hub within 365 days to explain how to apply for DPA help and list awards and agency contacts. Agencies would make outreach plans within 365 days after the toolkit and then every six months. Software bought with these funds would have to be commercially available off‑the‑shelf unless no COTS product meets requirements or is impractical to buy. The bill would replace $10,000 statutory triggers across the Act with $100,000.
DPA Committee meetings and deadlines
If enacted, the DPA Committee would have to meet at least twice a year and could form subcommittees. The bill would create an Emerging Technology Subcommittee to study AI, robotics, biotech, cryptography and quantum, materials science, semiconductors, and space. The President would have to issue required directives within 360 days after enactment.
Lawsuits only in D.C. appeals court
If enacted, any civil lawsuit challenging an action under this Act could be filed only in the U.S. Court of Appeals for the D.C. Circuit. This would limit where people and companies can sue about DPA decisions.
Limits on officials' company eligibility
If enacted, any firm where a covered individual or their close relatives own a significant interest would be barred from getting assistance under this title. A 'covered individual' includes the President, Vice President, or a DPA Committee member and certain relatives. 'Significant interest' means owning 20 percent or more, and related persons' ownership is added together.
Sponsors & CoSponsors
Sponsor
Davidson
OH • R
Cosponsors
Rep. Beatty, Joyce [D-OH-3]
OH • D
Sponsored 2/25/2026
Rep. Huizenga, Bill [R-MI-4]
MI • R
Sponsored 2/25/2026
Rep. Vargas, Juan [D-CA-52]
CA • D
Sponsored 2/25/2026
Rep. Nunn, Zachary [R-IA-3]
IA • R
Sponsored 2/25/2026
Roll Call Votes
No roll call votes available for this bill.
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