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HR7688119th CongressWALLET

DPA Modernization Act of 2026

Sponsored By: Representative Davidson, Warren [R-OH-8]

In Committee

Summary

This bill would modernize the Defense Production Act by reorganizing the law and creating a dedicated Defense Production Act Fund that can lend, guarantee, buy, subsidize, and take equity to shore up strategic supply chains. It would also launch a Critical Minerals Resilience Initiative and create a National Defense Executive Reserve.

Show full summary
  • Workers and skills: Agencies must identify workforce gaps, direct part of financial assistance to recruiting, training, and retention, and report on apprenticeships and workforce reforms.
  • Manufacturers and supply chains: Establishes a Fund and Fund manager with expanded tools for loans, guarantees, purchases, subsidy payments, and equity investments with a government ownership cap of 15 percent. Creates a Critical Minerals Resilience Initiative to support domestic mining and processing and provide procurement or price supports.
  • Federal coordination and oversight: Requires a DPA Dashboard and public toolkit, tightens Title I priorities to emergencies only, adds fraud risk controls and frequent reporting, and creates a National Defense Executive Reserve with agency units established in 180 days and Office of Personnel Management rules in 360 days.

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Bill Overview

Analyzed Economic Effects

8 provisions identified: 5 benefits, 0 costs, 3 mixed.

New rules for defense production fund

This bill would create or realign a Defense Production Act Fund with a Fund manager and new financing tools. It would provide $250 million for FY2026 and $5 million per year for FY2026–2031 for fund operations. Loans would get first‑priority liens that attach at disbursement, and equity investments by the government would be limited so total government ownership stays below 15 percent. The bill would also raise several dollar thresholds to $100,000 and require agencies to default to buying commercial off‑the‑shelf software for fund purchases unless no suitable product exists.

Funds must support defense workforce

This bill would require agencies using DPA Title I or II money to identify workforce gaps and allow agencies to direct some financial assistance to hire, train, place, or keep workers in defense‑critical jobs. Recipients told to use funds for workforce purposes would have to keep records of performance standards for the workers supported. Agencies must include workforce gaps and apprenticeship recommendations in the Committee's annual report.

New National Defense Executive Reserve

This bill would create a National Defense Executive Reserve of private specialists who can volunteer, train, and be temporarily appointed to Federal positions. OPM would have to issue final rules within 360 days after enactment on selection, appointments, compensation, training, and ethics. Agencies must set up Reserve units for Commerce, Defense, and Homeland Security within 180 days after those rules. Reserve service would have employment and reemployment protections similar to certain FEMA personnel.

Support for critical minerals and permits

This bill would create a Critical Minerals Resilience Initiative to help U.S. and allied mines and processors. It would let a DPA committee member make grants, purchases, offtake agreements, and price‑floor supports for critical minerals. The President could also waive or change rules to speed procurement of critical technologies and speed permitting for infrastructure to produce or refine those materials. If enacted, the aim would be to prevent a foreign adversary from dominating these supply chains.

Limits on emergency DPA powers

This bill would limit DPA Title I priorities and allocations to three triggers: a presidential national emergency, a Stafford Act disaster, or a section 319 public health emergency. It would bar controls on civilian‑market distribution of any material for more than one year, with a one‑time extension of up to 180 days only after a required report to Congress. The bill would also require challenges to DPA actions to be brought only in the U.S. Court of Appeals for the D.C. Circuit.

Ban on government buying sensitive data

This bill would bar the President from using the named DPA authority to obtain 'sensitive personally identifiable information.' The bill would define that phrase to mean personal data that could cause substantial harm, embarrassment, inconvenience, or unfairness if disclosed. If enacted, that DPA authority could not be used to acquire such sensitive personal data.

Single outreach contact for health emergencies

This bill would let FEMA, with HHS, appoint a single Outreach Representative during a public health emergency. That person would be an experienced manufacturer or distributor and would serve as the government‑wide contact for companies wanting to make medical supplies or equipment. The role would last for the period of the public health emergency.

Review of foreign farm land deals

This bill would require the DPA Committee to review certain reportable agricultural land transactions by persons from China, North Korea, Russia, or Iran when flagged by the Agriculture Secretary. The Committee must decide whether the transaction is covered and whether to start a review or take other action. These rules stop applying for a country if it is later removed from the foreign adversary list.

Sponsors & CoSponsors

Sponsor

Davidson, Warren [R-OH-8]

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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