[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7688 Introduced in House (IH)]
<DOC>
119th CONGRESS
2d Session
H. R. 7688
To modernize and reauthorize the Defense Production Act of 1950, and
for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 25, 2026
Mr. Davidson (for himself, Mrs. Beatty, Mr. Huizenga, Mr. Vargas, and
Mr. Nunn of Iowa) introduced the following bill; which was referred to
the Committee on Financial Services
_______________________________________________________________________
A BILL
To modernize and reauthorize the Defense Production Act of 1950, and
for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``DPA Modernization Act of 2026''.
SEC. 2. PRIORITIES AND ALLOCATIONS.
Title I of the Defense Production Act of 1950 (50 U.S.C. 4511 et
seq.) is amended--
(1) in section 101--
(A) by striking ``he'' each place such term appears
and inserting ``the President'';
(B) in subsection (a), by striking ``or
appropriate'' each place such term appears;
(C) in subsection (b)--
(i) by striking ``The powers'' and
inserting ``(1) The powers'';
(ii) by striking ``unless the President
finds (1) that such'' and inserting the
following: ``unless--
``(A) the President finds that--
``(i) such'';
(iii) by striking ``defense, and (2) that''
and inserting the following: ``defense; and
``(I) that'';
(iv) by striking the period at the end and
inserting ``; and''; and
(v) by adding at the end the following:
``(B) the powers are used to address--
``(i) a national emergency declared by the
President;
``(ii) a natural disaster declared by the
President pursuant to the Robert T. Stafford
Disaster Relief and Emergency Assistance Act;
or
``(iii) a public health emergency, as
determined by the Secretary of Health and Human
Services pursuant to section 319 of the Public
Health Service Act.
``(2) The powers described in this section may not be used
to control the general distribution of any material in the
civilian market for a period exceeding 1 year, except that the
President may extend such 1-year period for up to 180 days upon
reporting to Congress, on a non-delegable basis, that the
extension is essential to meet national defense
requirements.'';
(D) in subsection (c)--
(i) in paragraph (1), by striking
``Notwithstanding any other provision of this
Act, the'' and inserting ``The''; and
(ii) in paragraph (3), by striking
``President'' and inserting ``Executive
Director of the Defense Production Act
Committee''; and
(E) in subsection (d)--
(i) strike ``section shall'' and all that
follows through ``issue, and annually review
and update'' and insert the following:
``section, in consultation with the Defense
Production Act Committee--
``(1) shall--
``(A) issue and'';
(ii) by redesignating paragraph (2) as
subparagraph (B), and adjusting the margin of
such subparagraph accordingly;
(iii) in subparagraph (B), as so
redesignated, by striking the period at the end
and inserting ``; and''; and
(iv) by adding at the end the following:
``(2) may waive or revise relevant regulations for the
purpose of expediting the procurement of critical technologies
(as defined under section 316(a)) or critical minerals subject
to the priorities and allocations.'';
(2) in section 102--
(A) by striking ``he'' each place such term appears
and inserting ``the President''; and
(B) by striking ``sections 101 and 704 of this
Act'' and inserting ``sections 101 and 304'';
(3) in section 103, by striking ``$10,000'' and inserting
``$100,000'';
(4) by redesignating section 107 as section 204 and
transferring such section so as to appear after section 303;
and
(5) by redesignating section 108 as section 207 and
transferring such section so as to appear after section 305.
SEC. 3. EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY.
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is
amended--
(1) by redesignating title III as title II;
(2) by redesignating sections 301, 302, 303, 304, and 305
as sections 201, 202, 203, 205, and 206, respectively;
(3) in section 201, as so redesignated--
(A) in the heading, by striking ``presidential
authorization for the national defense'' and inserting
``loan guarantees'';
(B) in subsection (a)--
(i) in paragraph (1), by inserting ``, with
the concurrence of the Fund manager of the
Defense Production Act Fund,'' before ``to
provide''; and
(ii) in paragraph (2)--
(I) in the heading, by striking
``Presidential determinations'' and
inserting ``Determinations'';
(II) by striking ``during a period
of'' and inserting ``with respect to
a'';
(III) by striking ``if the
President'' and inserting ``if the
guaranteeing agency, in coordination
with the Fund manager of the Defense
Production Act Fund and relevant
members of the Defense Production Act
Committee,''; and
(IV) in subparagraph (G)(i), by
striking ``the President'' and
inserting ``Fund manager of the Defense
Production Act Fund'';
(C) in subsection (b)(1), by striking ``President''
and inserting ``Fund manager of the Defense Production
Act Fund'';
(D) in subsection (c), by striking ``President''
each place such term appears and inserting ``Fund
manager of the Defense Production Act Fund''; and
(E) in subsection (d)--
(i) in paragraph (1)--
(I) by striking ``shortfalls.--''
and all that follows through ``If the
making'' and inserting ``shortfalls.--
If the making'';
(II) by striking ``$50,000,000''
and inserting ``$100,000,000'';
(III) by striking ``only--'' and
all that follows through ``if the
President'' and inserting ``only if the
Fund manager of the Defense Production
Act Fund'';
(IV) by striking ``guarantee; and''
and inserting ``guarantee.'';
(V) in subparagraph (A), by
striking clause (ii); and
(VI) by striking subparagraph (B);
and
(ii) in paragraph (2)(B), by striking ``not
later than 10 days''; and
(4) in section 202, as so redesignated--
(A) in subsection (a), by inserting ``authorize a
lending agency, with the concurrence of the Fund
manager of the Defense Production Act Fund and relevant
members of the Defense Production Act Committee, to''
after ``President may'';
(B) in subsection (b)--
(i) in paragraph (1), by striking ``and''
at the end;
(ii) in paragraph (2)--
(I) by inserting ``except'' before
``during'';
(II) by striking ``no such loan may
be made unless the President'' and
inserting ``no such loan may be made
with respect to the national emergency
unless the lending agency, in
consultation with the Fund manager of
the Defense Production Act Fund and
relevant members of the Defense
Production Act Committee,''; and
(III) by striking the period at the
end and inserting a semicolon; and
(iii) by adding at the end the following:
``(3) any such loan shall be secured by a first-priority
lien on such collateral as the Fund manager of the Defense
Production Act Fund may require, and such lien shall--
``(A) attach upon disbursement of funds;
``(B) be senior to all other liens and claims; and
``(C) be deemed perfected upon attachment; and
``(4) in the event that the loan recipient defaults on the
repayment of the loan, any portion of such repayment that is
not satisfied from the collateral described in paragraph (3)
shall have priority in payment over all other unsecured
claims.''; and
(C) in subsection (d)--
(i) in paragraph (1)--
(I) by striking ``$50,000,000'' and
inserting ``$100,000,000'';
(II) by striking ``only--'' and all
that follows through ``if the
President'' and inserting ``only if the
Fund manager of the Defense Production
Act Fund'';
(III) in subparagraph (A), by
striking ``; and'' at the end and
inserting a period; and
(IV) by striking subparagraph (B);
and
(ii) by striking paragraph (2);
(5) in section 203, as so redesignated--
(A) in the heading, by striking ``other
presidential action authorized'' and inserting
``purchases, commitments to purchase, and subsidy
payments'';
(B) in subsection (a)--
(i) in paragraph (1) by striking ``the
President'' and inserting ``a member of the
Defense Production Act Committee described
under section 317(b)(1)(A), in consultation
with the Executive Director of the Defense
Production Act Committee,'';
(ii) in paragraph (5)--
(I) in the heading, by striking
``Presidential'' and inserting
``Federal agency'';
(II) by striking ``Except as
provided in paragraph (7), the
President'' and inserting ``The member
described under paragraph (1)'';
(III) by striking ``the President,
on a non-delegable basis,'' and
inserting ``member, on a non-delegable
basis, and in consultation with the
Executive Director of the Defense
Production Act Committee,''; and
(IV) in subparagraph (B), by
striking ``Presidential'';
(iii) in paragraph (6)--
(I) in subparagraph (A)--
(aa) by striking ``Except
as provided in paragraph (7),
the President'' and inserting
``The member described under
paragraph (1)''; and
(bb) by striking ``by the
President'' and inserting ``by
the member'';
(II) in subparagraph (B)--
(aa) by striking
``$50,000,000'' and inserting
``$100,000,000'';
(bb) by striking ``the 30-
day period following''; and
(cc) by inserting ``by the
Fund manager of the Defense
Production Act Fund'' after
``in writing''; and
(III) by striking subparagraph (C);
and
(iv) by striking paragraph (7) and
inserting the following:
``(7) Limitations on equity investments.--The equity shares
of an entity may not be acquired under this section if such
acquisition would result in the Government holding, in the
aggregate, 15 percent or more of the equity shares of the
entity.
``(8) Acquisition and liquidation.--A member of the Defense
Production Act Committee described under section 317(b)(1)(A)--
``(A) may make an equity investment in an entity
under this section only after the Fund manager of the
Defense Production Act Fund finds that the entity is
unable to obtain additional equity investment from
private sources on commercially reasonable terms; and
``(B) shall seek to sell and liquidate any equity
support for an entity provided under this section as
soon as commercially feasible, commensurate with other
similar investors in the entity, taking into
consideration the national security interests of the
United States.'';
(C) by redesignating subsections (b) through (g) as
subsections (c) through (h), respectively;
(D) by inserting after subsection (a) the
following:
``(b) Critical Minerals Resilience.--
``(1) Critical minerals resilience initiative.--There is
established the Critical Minerals Resilience Initiative, under
which a member of the Defense Production Act Committee
described under section 317(b)(1)(A), in consultation with the
Executive Director of the Defense Production Act Committee and
the Fund manager of the Defense Production Act Fund, may make
grants, purchases, and commitments to purchase involving an
entity in the United States, a member country of the North
Atlantic Treasury Organization, or a major non-NATO ally, to--
``(A) ensure that the mining or processing of
critical and strategic materials is not dominated by a
foreign adversary; and
``(B) provide for offtake agreements, price floors,
or incentives in order to ensure the viability of mines
or processing facilities for critical and strategic
materials outside the control of a foreign adversary.
``(2) Cooperation among entities.--To the extent
practicable, the Defense Production Act Committee shall develop
a process to encourage cooperation among, and manage potential
conflicts between--
``(A) entities that are domestic sources, and the
countries where they are located; and
``(B) for the purpose of carrying out the Critical
Minerals Resilience Initiative, countries involved in
the Initiative.'';
(E) in subsection (c), as so redesignated, by
striking ``not more than 10 years'' and inserting
``more than 10 years''
(F) in subsection (d), as so redesignated--
(i) in paragraph (1)(A), by striking
``necessary to carry out the objectives of this
title'' and inserting ``essential for national
defense requirements'';
(ii) in paragraph (2)--
(I) by striking ``President may
make provision for subsidy payments''
and inserting ``President, in
consultation with the Executive
Director of the Defense Production Act
Committee and the Fund manager of the
Defense Production Act Fund, may make
provision for subsidy p