A July 20 executive order directs the Defense Department to tighten sourcing rules for critical materials and build a more detailed view of the supply chains behind military equipment, components and software.

Beginning January 1, 2027, waivers for covered noncompliant materials are to be limited. Contractors seeking exceptions would need an accepted mitigation plan that identifies the material's source, documents efforts to find a compliant supplier and sets a timetable for removing the noncompliant input. The order also calls for policy within 180 days requiring contractors to map critical supply chains from raw materials through the products delivered to the department.

The White House presents the measure as a national-security and industrial-resilience policy. The Associated Press independently reported the signing and said contractors would be required to justify waivers and map critical inputs. The full cost and compliance burden will depend on implementing regulations, which have not yet been issued.

Sources: White House executive order: https://www.whitehouse.gov/presidential-actions/2026/07/securing-americas-defense-supply-chains-and-ensuring-domestic-acquisition-of-critical-materials/ Associated Press live report: https://apnews.com/article/e28a54c4dbe41c9f22046ed054005c1d