The President signed an executive order on July 20, 2026, directing the Department of War to secure military supply chains by enforcing requirements to source critical materials domestically or from allied nations.
The document, published in the Federal Register on July 23, 2026, affects defense contractors and subcontractors at all tiers. The policy requires companies to reduce reliance on sensitive materials from geopolitical adversaries by limiting sourcing waivers and tracing components back to raw materials.
Starting Jan. 1, 2027, the Secretary of War and military department secretaries must cease issuing certain waivers for the acquisition of covered materials. Waivers will only be permitted if the prime contractor or subcontractor submits a formal mitigation plan accepted by the secretary, or following a request to the Assistant to the President for National Security Affairs. The mitigation plan must identify the foreign source, document exhaustive efforts to acquire compliant material or demonstrate it was not available, and establish a strict timeline for removal.
Failing to qualify a domestic source will not justify a waiver unless the contractor demonstrates active, funded efforts to do so.
The order gives the Secretary of War 180 days to develop policies requiring all prime contractors and subcontractors to map their critical supply chains. According to the order, the secretary must promulgate regulations requiring companies to submit a complete bill of materials and proactively screen suppliers for financial risks, manufacturing constraints, and foreign ownership or influence. The proposed regulations will require contractors to notify the department of significant risks within 15 days of vetting and submit a corrective action plan within 45 days.
If a contractor deliberately misleads the government or fails to follow an approved mitigation plan, the Secretary of War can take contractual action and refer the case to the Attorney General for possible prosecution. The order also directs the secretary to create a strategy within 90 days to accelerate the testing and qualification of new sources and materials.
The Secretary of War must report progress to the Assistant to the President for National Security Affairs every six months until Jan. 1, 2028. The order states that nothing in it shall be construed to impair or affect acquisitions through the U.S. Strategic Critical Minerals Reserve, known as Project Vault, or projects financed by certain federal agencies.