The DPA Modernization Act of 2026 updates and strengthens the Defense Production Act of 1950, a law that gives the federal government power to direct production of critical materials during emergencies. This bill modernizes how the government can support domestic production of essential goods, particularly critical minerals and advanced technologies needed for national defense.

The bill creates clearer rules for when and how the government can use these emergency powers. Instead of just the President acting alone, a new Defense Production Act Committee—made up of representatives from multiple federal agencies—will oversee these decisions. The government can now use these powers not just for military defense, but also during natural disasters and public health emergencies (like pandemics). However, the bill adds important limits: the government generally can't control civilian markets for more than one year without getting special approval from Congress.

The law expands the government's financial tools to help build up domestic production. It increases loan guarantees and can now provide grants, direct purchases, and subsidies to help American companies and allied nations develop critical minerals and advanced technologies. A new Critical Minerals Resilience Initiative specifically aims to reduce dependence on foreign adversaries for essential materials. The bill also includes workforce provisions, allowing companies receiving government support to use funds for recruiting and training workers in defense-critical jobs.