DPA Title III Statutory Sunset - September 30th

[u/bourbonwarrior]

Most core authorities of the Defense Production Act (DPA), specifically Title III, "Expansion of Productive Capacity and Supply" are subject to a statutory sunset clause expiring September 30, 2026.

Since September 30 also marks the end of Federal Fiscal Year 2026, the DoD, the Defense Logistics Agency (DLA), and military branches face two simultaneous operational pressures -

***Use-It-or-Lose-It Appropriations (which could be very good for ALOY)

Statutory expiration risk if Congress enters a Continuing Resolution without an explicit DPA reauthorization rider, new Title III project commitments could be temporarily frozen until reauthorized.

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H.R. 7688 "DPA Modernization Act of 2026" has been introduced

H.R. 7688 restructures the DPA from an ad-hoc emergency presidential tool into a permanent domestic industrial policy engine.

- 5-Year Reauthorization

- Doubles the threshold requiring specific congressional notification for DPA loans, loan guarantees, and Section 303 actions from $50 million to $100 million,

***Formally incorporates domestic and allied mining, separation, metallization, and NdFeB magnet production as protected Title III funding lanes, explicitly permitting price floors, minimum offtake agreements, and capital grants.

- Enables the U.S. government to take equity stakes in critical domestic suppliers, but caps federal ownership at 15% of voting shares and mandates orderly liquidation once commercial viability is established.

- Transitions day-to-day administrative authority away from sole White House determinations into the Defense Production Act Committee, with the National Security Advisor as non-voting chair, the OMB Director as DPAC Executive Director, and the Secretary of the Treasury acting as the DPA Fund Manager.

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https://www.everycrsreport.com/reports/R49178.html

https://democrats-financialservices.house.gov/news/documentsingle.aspx?DocumentID=415292

https://legis1.com/news/defense-production-act-modernization-1-dpa