Section 1. Short title

This Act may be cited as the DPA Workforce and Skilled Labor Needs Act of 2026.

Sec. 2. Use of funds for skilled labor

Section 303 of the Defense Production Act of 1950 (50 U.S.C. 4533) is amended by adding at the end the following new subsection:

(h) Use of funds for skilled labor

(1) Identification of workforce and skills gaps

Each Federal agency to which the President has delegated authority under this Act shall identify any workforce gaps or skills gaps that affect the ability of the domestic industrial base to supply the materials and services necessary to satisfy the objectives set forth in section 2(b).

(2) Use of funds

With respect to an entity receiving financial assistance under title I or this title, the agency making such financial assistance may direct that a portion of the financial assistance be used to recruit, train, place, or retain workers in defense-critical occupations directly related to the activities funded by such assistance, if such entity keeps records of performance standards for workers recruited, trained, placed, or retained using such assistance.

(3) Information included in annual report

Each Federal agency to which the President has delegated authority under this Act shall include in the annual report of the Defense Production Act Committee required by section 722(d)—

(A)

a discussion of the identification required under paragraph (1) and the authority provided under paragraph (2);

(B)

short-term and long-term recommendations for administrative or legislative action to reduce any workforce gaps or skills gaps identified by the agency, including recommendations on workforce training programs to recruit, train, place, and retain workers in occupations critical to the national defense, including any apprenticeships.

Sec. 3. Short title correction

The first undesignated section of 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.