DPA Modernization Act of 2026

This bill modernizes and reauthorizes the Defense Production Act of 1950 by reorganizing its titles, updating authorities, and adding new requirements. It makes changes to priorities and allocations, loan guarantees, purchases and subsidies, and general provisions, and it requires studies and reports on stockpiling, the Defense Production Act Committee, and strategic reserves.

Sec. 3, Priorities and allocations: This section updates Title I of the Defense Production Act. It replaces references to "he" with "the President," limits the use of priorities and allocation powers to national emergencies, natural disasters, or public health emergencies, and prohibits using these powers to control civilian market distribution for more than one year (with a possible 180-day extension upon reporting to Congress). It also increases the penalty for violations from $10,000 to $100,000 and transfers certain sections to new locations.

Sec. 4, Expansion of productive capacity and supply: This section redesignates Title III as Title II and renumbers sections. It changes loan guarantee authorities to require concurrence from the Fund manager of the Defense Production Act Fund, increases the threshold for reporting loan guarantee shortfalls from $50,000,000 to $100,000,000, and adds requirements for loan collateral and priority in default. For purchases and subsidy payments, it transfers authority to members of the Defense Production Act Committee, increases reporting thresholds, and adds a 15% limit on government equity holdings in any entity.

Sec. 5, General provisions: This section redesignates Title VII as Title III and renumbers sections. It adds a requirement that regulations be consistent with national defense requirements, expands the definition of "national emergency" to include public health emergencies, and creates an Outreach Representative during public health emergencies. It also increases various penalty amounts from $10,000 to $100,000, prohibits using authority to obtain sensitive personally identifiable information, and limits civil actions challenging actions under the Act to the U.S. Court of Appeals for the D.C. Circuit.

Sec. 6, Prohibition and notification on investments relating to covered national security transaction: This section redesignates Title VIII as Title IV and renumbers sections 801 through 809 as sections 401 through 409, updating cross-references throughout.

Sec. 7, Studies and reports: This section requires the Comptroller General to study the efficacy of current methods for addressing long-lead items and stockpiling under the Defense Production Act, and to report on the Defense Production Act Committee's coordination and planning. It also requires the Subcommittee on Emerging Technology to evaluate the potential benefits and drawbacks of establishing a strategic reserve of critical biomanufacturing inputs.

Sec. 8, Conforming amendments: This section updates cross-references in several other laws to reflect the renumbering of sections in the Defense Production Act of 1950.