The Defense Production Act (DPA) of 1950 (P.L. 81-774, 50 U.S.C. §§4501 et seq.), as amended, gives the President a broad set of authorities to influence domestic industry in the interest of national defense. These authorities are currently provided in three titles: Title I: Priorities and Allocations allows the President to require persons, businesses, and corporations to prioritize and accept federal contracts for materials and services as necessary to promote national defense. Title III: Expansion of Productive Capacity and Supply allows the President to provide various financial incentives to the domestic industrial base to expand the production and supply of materials and goods critical for national defense. Title VII: General Provisions includes key definitions for the DPA and other miscellaneous authorities, including the authority to establish voluntary agreements with private industry and the authority to establish a volunteer pool of industry executives who could be called to government service in the interest of national defense. Recent Administrations have used the DPA in several notable scenarios. Both the first Trump and Biden Administrations invoked DPA authorities in response to the COVID-19 pandemic. The Biden Administration also invoked the DPA to respond to the 2022 Russian/Ukrainian war and for other policies it deemed important to national defense, such as investing in clean energy technologies. The second Trump Administration has invoked the DPA for multiple goals—for example, increasing domestic mineral and energy production. Most of the DPA’s authorities are subject to a sunset clause, currently set to September 30, 2026. The DPA Modernization Act of 2026 (H.R. 7688, 119th Congress) would extend the sunset date by five years and proposes a series of changes to DPA provisions, including the following: Adding specific conditions for the President to invoke the priorities and allocations authority in Title 1, potentially limiting when Title I may be invoked. Amending language in Title III (which would be redesignated as Title II) on the processes and personnel involved when DPA financial incentives are provided, including authorizing certain entities and officials other than the President (who under current statute has such authority) to make the determinations necessary for granting Title III assistance. The bill would also increase the statutory cap on annual unobligated funds available for Title III assistance, place parameters around the use of the DPA for equity investments, and allow the DPA to be used to increase critical materials and mineral production. Expanding the DPA’s definition of national defense in Title VII (which would be redesignated as Title III) to emphasize public health events, among other additions. Broadening the authority in Titles III and VII for entities and officials other than the President, including the Defense Production Act Committee and Defense Production Act Fund manager, to collect information on, among other things, executive agency strategies for DPA use. The DPA Modernization Act of 2026 was reported by the House Committee on Financial Services on April 15, 2026, in a 41-0 vote. H.R. 7688 also contains provisions pertaining to the Committee on Foreign Investment in the United States (CFIUS). However, CFIUS is generally considered separate and distinct from the DPA, and this report does not cover those provisions. For more information on CFIUS, see CRS In Focus IF10177, Committee on Foreign Investment in the United States (CFIUS).
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