DPA Modernization Act of 2026

Full Title:
DPA Modernization Act of 2026

Summary#

This bill updates and reauthorizes the Defense Production Act (DPA). It moves and renames several DPA sections, changes who makes certain decisions (adding a Fund manager and Executive Director roles), and updates authorities for loan guarantees, loans, purchases, subsidies, and limited equity investments. It creates a Critical Minerals Resilience Initiative to support mining and processing outside control of foreign adversaries. The bill allows agencies to waive or revise regulations to speed procurement and permitting for critical technologies, minerals, and related infrastructure. It adds requirements for agency plans, annual DPA strategies, regular simulations, a committee dashboard and toolkit, a Subcommittee on Emerging Technology, and new hiring authority for subject matter experts. It also limits government equity ownership to under 15 percent in any entity, bans discrimination in assistance based on energy source (except for energy production), and restricts assistance to entities tied to certain covered individuals.

What it means for you#

  • Businesses that make critical technologies, materials, or medical supplies could be eligible for loans, guarantees, grants, purchases, subsidy payments, or temporary equity support under updated rules.
  • Agencies must identify workforce and skills gaps and can direct part of financial assistance to recruit, train, or retain workers for defense-critical occupations.
  • During a presidentially declared national emergency, natural disaster, or public health emergency, agencies may use DPA authorities and can, in some cases, waive rules to speed procurement and permitting.
  • Entities in which certain covered officials or their close relatives hold 20 percent or more interest are not eligible for assistance under the title.

Expenses#

The bill text specifies several monetary changes and funding items: increases in some transaction thresholds from $50,000,000 to $100,000,000; multiple $10,000 references changed to $100,000 for procedural penalties or amounts; an increase in a funding cap from $750,000,000 to $2,000,000,000 in one subsection; and an explicit appropriation direction of $250,000,000 for fiscal year 2025 and $5,000,000 for each fiscal year 2026 through 2031 to the Executive Director of the DPA Committee and the Fund manager to carry out the Act. The bill also creates lending and lien rules for loans and sets a 15 percent cap on aggregate government equity in an entity. No publicly available information on the bill's total net cost or full appropriation schedule beyond the amounts stated in the text.

Proponents' View#

No publicly available information.

Opponents' View#

No publicly available information.