MEMORANDUM FOR THE SECRETARY OF ENERGY
SUBJECT: Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as Amended, on Grid Infrastructure, Equipment, and Supply Chain Capacity
On January 20, 2025, I enacted Executive Order 14156, declaring a National Energy Emergency under the National Emergencies Act. This order established that the nation’s insufficient energy production, transportation, and infrastructure present a significant and unusual threat to the economic, national security, and foreign policy interests of the United States. It also highlighted how foreign adversaries have taken advantage of these weaknesses, underscoring the necessity of a reliable and affordable domestic energy supply, along with the infrastructure for its generation, transmission, and delivery, to maintain U.S. defense readiness, economic strength, and energy independence.
Aligned with this declaration, I have determined that the aging and limited capacity of America’s electrical grid infrastructure increasingly jeopardizes national defense. The country’s ability to design, produce, and implement large-scale grid infrastructure—such as transformers, high-voltage transmission components, advanced conductors, power electronics, substations, and manufacturing equipment supporting the grid—is critically constrained. These supply chains are at risk due to foreign competition, lengthy production timelines, and dependence on imported equipment, leaving the United States vulnerable to war, disaster, or economic disruption.
Therefore, under the authority given to me as President by the Constitution and the U.S. laws, including section 303 of the Defense Production Act of 1950, as amended (the “Act”) (50 U.S.C. 4533), I determine, pursuant to section 303(a)(5) of the Act, that:
(1) Grid infrastructure and its related upstream supply chains—including transformers, transmission lines and conductors, substations, high-voltage circuit breakers, power control electronics, protective relay systems, capacitor banks, electrical core steel, and associated raw materials and manufacturing tools—are critical industrial resources, materials, or technology items essential to national defense;
(2) Without Presidential action under section 303 of the Act, the U.S. industry cannot be reasonably expected to provide these capabilities for the necessary industrial resources, materials, or critical technology items in a timely manner due to limited domestic production capacity, extended procurement timelines, foreign supply dependence, and insufficient capital investment; and
(3) Engaging in purchases, purchase commitments, financial support for developing production capabilities, or other actions under section 303 of the Act is the most cost-effective, expedient, and practical approach to address this need.
Having declared a national emergency through Executive Order 14156, I further assert that enhancing domestic capability to develop, manufacture, and deploy grid infrastructure and its supporting industrial supply chains is crucial to prevent a shortfall in industrial resources or critical technology items that would significantly impair national defense capabilities. Consequently, under section 303(a)(7) of the Act, I waive the requirements of section 303(a)(1)-(a)(6) of the Act for the purpose of expanding such capabilities.
You are authorized and directed to implement this determination, including making necessary purchases, commitments, and financial instruments to facilitate these projects, and to publish this determination in the Federal Register.
DONALD J. TRUMP
