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

Key Points

• Starting January 1, 2027, the military will largely stop granting waivers that let defense contractors use materials from rival nations, unless the contractor has an approved plan to switch to domestic or allied sources.
• Defense contractors at every tier must submit a full traceable list of every component and raw material in their products, known as an indentured Bill of Materials, so the government can see exactly where everything comes from.
• If a contractor relies on a supplier from a rival nation, it must move to an alternative source as soon as possible, or the government can suspend, decline to renew, or terminate its contracts.
• The order directs the Department of War to speed up testing and qualification of new domestic material sources and to remove regulations that slow this process down.
• Contractors who commit fraud, mislead the government about their mitigation plans, or knowingly fail to follow through can face contract penalties and possible referral for criminal investigation.
• The order carves out an exception protecting the U.S. Strategic Critical Minerals Reserve, known as Project Vault, and materials financed by agencies like the Export-Import Bank, so those sourcing arrangements are not disrupted.