Securing America's Defense Supply Chains and Ensuring Domestic Acquisition of Critical Materials

What it does

• •Restricts waivers for defense acquisitions of covered materials from non-compliant sources starting January 1, 2027, unless contractors submit formal mitigation plans showing exhaustive efforts to find compliant sources and a timeline to remove non-compliant materials.
• •Requires all defense prime contractors and subcontractors to map complete supply chains from raw materials to finished products, identify suppliers and subcontractors, and conduct risk assessments for financial, foreign ownership/control, and manufacturing/supply vulnerabilities.
• •Mandates contractors to implement timely mitigation actions for identified supply chain risks, notify the Department of War within 15 days of completing vetting, and submit corrective action plans with implementation timelines within 45 days.

Why it matters

• •The order aims to reduce defense supply chain vulnerability to foreign adversaries and ensure military equipment and critical materials originate from domestic or allied sources, citing renewed great power competition.
• •The executive order enforces existing statutory requirements under 10 U.S.C. 4872 that the text states defense contractors have historically under-prioritized, tightening enforcement mechanisms and reducing discretionary waivers.

Who is affected

• •Defense prime contractors and subcontractors at any tier supplying materials or components to the Department of War for acquisitions related to national security.
• •Small businesses, non-traditional defense companies, and new entrant firms participating in defense supply chains, though regulations are to be designed to minimize undue burden on these entities.

What happens next

The Secretary of War must develop policy and implementation guidance within 180 days and promulgate implementing regulations within 90 days thereafter; the Secretary must also initiate regulatory action within 180 days to identify existing acquisitions and require alternative sourcing from unreliable foreign suppliers.