March 20, 2026
Ms. Waters introduced the following bill; which was referred to the Committee on Financial Services
To amend the Defense Production Act of 1950 to limit eligibility for assistance, increase monetary penalties, establish fraud risk management processes, and for other purposes.
Section 1. Short title
This Act may be cited as the DPA Transparency Act of 2026
.
Sec. 2. Limitation on eligibility for assistance
Title III of the Defense Production Act of 1950 (50 U.S.C. 4531 et seq.) is amended by adding at the end the following:
306. Limitation on eligibility for assistance
(a) In general
A covered entity is not eligible for assistance authorized under this title.
(b) Definitions
In this section:
(1) Covered entity
The term covered entity means an entity in which a covered individual directly or indirectly holds a significant interest. For the purpose of determining whether an entity is a covered entity, if securities of the entity are owned, controlled, or held by 2 or more individuals who are related as described in paragraph (2), such securities shall be aggregated.
(2) Covered individual
The term covered individual means—
(A)
the President, the Vice President, or a member of the Defense Production Act Committee; and
(B)
the spouse, child, son-in-law, or daughter-in-law of an individual described in subparagraph (A).
(3) Equity interest
The term equity interest means—
(A)
a share in an entity, without regard to whether the share is—
(i)
transferable; or
(ii)
classified as stock or a similar classification;
(B)
a capital or profit interest in a limited liability company or partnership; and
(C)
a warrant or right (other than a right to convert) to purchase, sell, or subscribe to a share or interest described in subparagraph (A) or (B), respectively.
(4) Significant interest
The term significant interest means owning, controlling, or holding not less than 20 percent, by vote or value, of the outstanding amount of any class of equity interest in an entity.
Sec. 3. Enhanced monetary penalties
The Defense Production Act of 1950 (50 U.S.C. 4501 et seq.) is amended—
(1)
in section 103, by striking $10,000
and inserting $100,000
;
(2)
in section 705, by striking $10,000
each place it appears and inserting $100,000
; and
(3)
in section 710(f), by striking $10,000
and inserting $100,000
.
Sec. 4. Fraud risk management
Section 722 of the Defense Production Act of 1950 (50 U.S.C. 4567) is amended—
(1)
in subsection (d)—
(A)
in paragraph (5), by striking and
at the end;
(B)
in paragraph (6), by striking the period at the end and inserting ; and
; and
(C)
by adding at the end the following new paragraph:
(7)
a summary of any steps taken to reduce fraud in transactions under this Act and a fraud risk assessment for all activities under undertaken under this Act.;
(2)
by redesignating subsection (e) as subsection (f); and
(3)
by inserting after subsection (d) the following new subsection:
(e) Fraud risk management
Not later than 1 year after the date of the enactment of this subsection, the Committee shall—
(1)
establish and implement processes and procedures consistent with leading practices included in the publication of the Comptroller General of the United States titled
A Framework for Managing Fraud Risks in Federal Programs(GAO–15–593SP; published July 28, 2015) to combat fraud in transactions undertaken under this Act;(2)
train personnel about the standards and practices established and implemented under paragraph (1); and
(3)
designate a point of contact within the Committee to be responsible for managing issues relating to fraud, including coordinating with agencies to review fraud-related issues.
Sec. 5. Short title correction
The first undesignated section of the the Defense Production Act of 1950 is amended, effective on the date of enactment of such Act, by striking cited as “the Defense
and inserting cited as the “Defense
.