This executive order strengthens current prohibitions against defense contractors acquiring materials from adversary countries pursuant to 10 U.S. C. 4872 and the regulations promulgated thereunder. Currently, the secretary of war is permitted to issue waivers of the prohibitions under the statute. This executive order tightens the circumstances under which the waivers may be issued. A request for a waiver must now identify the source of covered material that would not be compliant with the statute; document evidence of exhaustive efforts made to acquire compliant materials; describes the steps to be taken by the contractor to remove noncompliant, covered material from supply chains; and establishes a strict projected timeline for complete implementation of a mitigation plan. Within 180 days of the executive order, the secretary of war is to develop a policy and implementation guidance to require all prime contractors and subcontractors at any tier to map and illuminate critical supply chains for all department of war acquisitions. The executive order also requires the secretary of war to initiate regulatory action within 180 days of the date of the order to identify all acquisitions by the Department of War that support or relate to national security and require contractors that rely on supply chains that include material or components supplied by an unreliable foreign supplier to, as soon as possible, qualify and utilize alternative sources for the material or component supplied by the unreliable foreign supplier. Within 90 days of the date of the order, the secretary of war is to develop a strategy to accelerate testing and qualifications of new sources of materials by contractors at any tier.
News | July 20, 2026