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Fiscal Receipts

Defense Production Act Purchases

DPAPProcurementPartial ReconciliationTITLE3
What it is
Defense Production Act Purchases — a procurement program run by DPAP.
What changed
No FY25→26 comparison — trajectory data incomplete for this line.
Who gets it
No award linkage at high confidence.

Budget Figures

FY24 Actuals
$929.1M
FY25 Total
FY26 Request
$265.9M
FY25→26 Change
Budget Trajectory
FY24: $929.1MFY26: $265.9MFY24FY26
FY24
$929.1M
FY26
$265.9M

FY2026 award data is a partial year — USASpending awards are reported on a rolling basis and the fiscal year does not close until September 30. why →

Program dossier

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Research dossiers exist for 50 of 326 programs — the top-50 programs by FY2026 request, ranked by dollar value. why →

What it is

  • Defense Production Act Purchases (DPAP) is a Department of Defense program that operates under the authorities of Title III of the Defense Production Act (DPA), a law that lets the government use economic incentives to create, maintain, protect, expand, or restore domestic sources for critical components, technology items, and industrial resources.
  • The DPA is authorized by 50 U.S.C. Sections 4501-4568.
  • The program aims to sustain and expand domestic industrial capabilities so the defense industrial base can meet the needs of current and future warfighters, investing in prime and sub-tier suppliers to reduce supply-chain risks and eliminate production bottlenecks.
  • It resides within the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)) and works alongside other efforts such as the Industrial Base Analysis and Sustainment (IBAS) program.
  • The program is categorized as DPA Title III industrial-base purchases spanning multiple sectors (including hypersonics and shipbuilding inputs), a portfolio with no single dominant category.
  • Example investment areas include critical chemicals and the hypersonics industrial base, radiation-hardened electronics and advanced packaging, the rare earth supply chain and other mining activities, castings and forgings, and the energy storage and battery supply chain.
  • The multi-year projects in the budget are intended to establish, strengthen, and expand domestic industrial base capabilities in areas such as strategic radiation-hardened microelectronics and the rare earths supply chain.

Why it matters

  • For fiscal year 2026 the request totals $265.923 million (in USD thousands, $265,923), combining $236.923 million of discretionary funding and $29.000 million of mandatory reconciliation funding.
  • The $29.000 million of mandatory (reconciliation) funds are earmarked to establish strategic and critical minerals and materials sources in FY 2026.
  • The FY 2026 discretionary portion alone is $236.923 million.
  • That marks a sharp drop from FY 2024 actual spending of $929.105 million (USD thousands, $929,105), a figure that is important because it reflects large supplemental appropriations in that year.
  • FY 2025 enacted funding was $463.377 million, roughly half of the FY 2024 level.
  • A major reason for the FY 2026 discretionary reduction is a $227.000 million cut from realigning Bioindustrial Manufacturing investments to the Office of the Under Secretary of Defense for Research and Engineering, alongside a $4.454 million decrease to meet departmental reduction targets and a $75.000 million increase for identified defense industrial base priorities.
  • The FY 2024 total included a base appropriation of $597.905 million plus $198.600 million from the Israel Security Supplemental Appropriations Act and $132.600 million from the Indo-Pacific Security Supplemental Appropriations Act.
  • The program lost the authority to execute future Distributed Bioindustrial Manufacturing Program investments after Executive Order 14236 (March 14, 2025) revoked the presidential memorandum that had waived a statutory requirement, and the funds were reprioritized toward strategic and critical minerals and materials.

Key players

  • The program is managed by the Office of the Secretary of Defense (OSD), with all budget lines reported under that organization.
  • The Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) is the office of primary responsibility for Distributed Bioindustrial Manufacturing Program investments.

Budget Line Items(workbook-cited)

Exhibit P-1

AccountOrgTypeAmount
Defense Production Act PurchasesOSDFY24 Actuals$929.1M
Defense Production Act PurchasesOSDFY25 Enacted$463.4M
Defense Production Act PurchasesOSDFY26 Disc. Request$236.9M
Defense Production Act PurchasesOSDFY26 Reconciliation$29.0M
Defense Production Act PurchasesOSDFY26 Total$265.9M

Budget Details(R-2/P-40 facts)

ProjectAll Prior YearsFY24 ActualsFY25 TotalFY26 BaseFY26 Request
Program Element$333.0M$929.1M$463.4M$236.9M$236.9M

Program Narratives

DescriptionDefense Production Act Purchases

New Start (Y/N): No Title III of the Defense Production Act (DPA) provides the President broad authorities to ensure the timely availability of domestic industrial base capabilities essential for the national defense. DPA Title III authorizes the use of economic incentives to create, maintain, protect, expand, or restore domestic sources for critical components, critical technology items, and industrial resources. The DPA is authorized by 50 U.S.C. Sections 4501-4568. This budget includes a project portfolio that will appropriately utilize DPA Title III authorities to strengthen domestic industrial base capabilities essential to national defense. The multi-year projects in this budget will incentivize domestic sources to establish, strengthen, and expand domestic industrial base capabilities in key areas such as strategic radiation-hardened microelectronics and the rare earths supply chain.

JustificationDefense Production Act Purchases

This program element supports the Department's priority to build a resilient Joint Force and defense ecosystem by building enduring advantages. This is executed by sustaining and expanding domestic industrial capabilities to ensure the Defense industrial base can meet the needs of the current and future warfighter. Strategic overview: The Defense Production Act Purchases (DPAP) program element line executes under the authorities provided by Title III of the Defense Production Act (DPA), and is one component of a broader DoD investment strategy to build and strengthen the defense industrial base and secure U.S. supply chains. Residing within the Office of the Assistant Secretary of Defense for Industrial Base Policy (OASD(IBP)), DPAP investments are used discretely and in tandem with other DoD investment programs, such as the Industrial Base Analysis and Sustainment (IBAS) program, to ensure collaborative and non-duplicative investment against critical defense industrial base and U.S. supply chain issues. The DPAP program element supports Department priorities through investment in prime and sub-tier suppliers to mitigate supply chain risks and eliminate production capacity bottlenecks. DPA Title III investments are driven by department strategies such as the Interim National Defense Strategic Guidance (INDSCG), working to build a resilient Joint Force and defense ecosystem by building enduring advantages. DPA Title III investments are also supporting Department of Defense modernization priorities and recommendations from interagency reports in response to Executive Order 14017 (E.O. 14017), including prior assessments as directed by this executive order. Examples of investments include Critical Chemicals and the Hypersonics industrial base to support the Departments' kinetic capabilities; investments in radiation hardened electronics, advanced packaging and other electronics areas to support of the Department's microelectronics requirements; investments in the rare earth supply chain and other mining activities to support the supply of strategic and critical materials; investments in castings and forgings; and investments in the energy storage and battery supply chain. DPA Title III investments are further synchronized across the department through coordination with other research and development programs. Program Element Summary: The FY 2026 budget resources the DPAP program element to address critical shortfalls in the domestic industrial base areas identified by the Department and Congress. The breakout of these projects is provided below, although specified numbers for each initiative are estimates that are subject to change based on ongoing market research, the acquisition process, and other external factors. The FY 2026 budget request includes $236.923 million of discretionary and $29.000 million of mandatory (reconciliation) for a total of $265.923 million. The mandatory funds will be used to establish strategic and critical minerals and materials sources in FY 2026. Further information for this reconciliation request is provided in Chapter 2 of the Reconciliation Exhibit. When compared to the FY 2025 President's Budget Request (PBR 2025), changes to the FY 2026 discretionary budget includes a reduction of $227.000 million resulting from realigning funding for Bioindustrial Manufacturing investments to the Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) PE 0603680D8Z, Project Code 549, Defense-Wide Manufacturing Science and Technology Program. Additionally, a decrease of $4.454 million was made to meet target Departmental reductions, while an increase of $75.000 million was made for Department identified defense industrial base priorities. FY 2026: $236.923 million of discretionary and $29.000 million of mandatory (reconciliation) for a total of $265.923 million. - Strategic and Critical Materials (Mandatory $29.000 million) - Missiles and Munitions ($154.923 million) -- Hypersonics, Chemical Production, Solid Rocket Motors - Casting and Forgings ($50.000 million) - Space Industrial Base ($12.000 million) - Program Management and Administrative Support ($20.000 million) FY 2025: $463.377 million - Strategic and Critical Materials ($249.000 million) - Missiles and Munitions ($154.677 million) -- Solid Rocket Motors, Chemical Production - Strategic Radiation Hardened Microelectronics ($20.700 million) - Space Industrial Base ($12.000 million) - Program Management and Administrative Support ($27.000 million) * $167.800 million of Ukraine Security Supplemental Appropriations Act funds was transferred into the DPAP account in FY 2025 for Gas Turbine Engines for Missiles, however this is not included in the FY 2025 enacted numbers in this exhibit. FY 2024: $929.105 million Base Appropriation: $597.905 million - Strategic and Critical Materials ($238.669 million) - Missiles and Munitions ($152.269 million) -- Solid Rocket Motors, Chemical Production, Hypersonics, Guidance, Navigation and Control Industrial Capabilities - Distributed Bioindustrial Manufacturing Program ($70.839 million) - Casting and Forgings ($31.000 million) - Microelectronics Packaging Capabilities ($30.493 million) - Strategic Radiation Hardened Microelectronics ($24.393 million) - Space Industrial Base ($15.000 million) - Secure Composite Shipping Containers ($9.000 million) - Program Management and Administrative Support ($26.211 million) Israel Security Supplemental Appropriations Act: $198.600 million - Missiles and Munitions ($198.600 million) -- Precision Ball Bearings, Chemical Production, Guidance, Navigation and Control Industrial Capabilities Indo-Pacific Security Supplemental Appropriations Act: $132.600 million - Missiles and Munitions ($132.600 million) -- Gas Turbine Engines for Munitions Descriptions are provided below for the essential, transformational initiatives using the authorities established in Title III of the DPA. The single or multi-year cost phasing of each of the initiatives is addressed in the P-5 exhibit. Project Descriptions: Supplemental Industrial Supply Chain Risk Mitigation: This line of effort utilizes funds appropriated by the Additional Ukraine Supplemental Appropriations Act, the Israel Security Supplemental Appropriations Act, and the Indo-Pacific Security Supplemental Appropriations Act to deter adversarial aggression, while being prepared to prevail in conflict when necessary. Focused actions include mitigating defense industrial base (DIB) constraints to enable faster munition production to resupply U.S. stocks as they are consumed. Increasing production capacity to quickly replenish U.S. munition inventories is critical to both maintain U.S. readiness and assist our allies and partners. Several industrial base constraints and obsolescence issues limit the speed at which the U.S. Department of Defense (DoD) can replenish inventories of munitions. Additional Ukraine Supplemental Appropriations Act funds are also being leveraged to mitigate supply chain disruptions for critical materials amidst adversarial aggression. The Additional Ukraine Supplemental Appropriations Act appropriated $600.000 million of FY 2022 funds into the DPAP account. An additional $146.000 million of FY 2022 funds was transferred into the DPAP account during FY 2023 to invest in the solid rocket motor supply chain. The Israel Security Supplemental Appropriations Act appropriated $198.600 million of FY 2024 funds into the DPAP account, the Indo-Pacific Security Supplemental Appropriations Act appropriated $132.600 million of FY 2024 funds into the DPAP account, and $167.800 million from Ukraine Security Supplemental Appropriations Act was transferred into the DPAP account in FY 2025 funds into the DPAP account. - Strategic and Critical Materials: In accordance with Executive Order 14241, "Immediate Measures to Increase American Mineral Production," signed on March 20, 2025, it is essential the Department works to secure strategic and critical materials necessary for national defense and economic security amid global supply chain uncertainty and disruptions. For instance, titanium, steel, aluminum, magnesium, and other key industrial inputs that are necessary for production of defense systems, essential civilian market items, and advanced technologies. $500.000 million was allocated to expand domestic capacity for these resources. As of the end of FY 2024, $203.793 million has been obligated to date with an additional $125.674 million in acquisition, leaving $170.533 million for additional investments in FY 2025. Investments have been planned across multiple Areas of Interest (AOI) that cover key activities in critical materials supply chains. These AOIs include: -- Feasibility Studies: Comprehensive technical and economic study of a selected development option for a project that includes appropriately detailed assessments of realistically assumed extraction, processing, metallurgical, economic, marketing, legal, environmental, social, and governmental considerations, together with any other relevant operational factors and detailed financial analysis, that are necessary to demonstrate at the time of reporting that production is reasonably justified. -- By / Co-Product Extraction: Recovery of materials from a host material that may or may not be a material used in the production of large capacity batteries for automotive use by DoD, e-mobility, and stationary storage applications. -- Modernization & Productivity Improvements: Deployment and integration of flowsheet modifications to increase process efficiency and materials recovery. This includes transformational changes, such as the adoption of autonomous systems, automated logistics / materials handling, and related facility infrastructure. -- Recycling & Reclamation: Recovery of materials from in process / post processing waste and post-consumer products. -- Enabling Sub Tier Resources: Industrial resources that are necessary to accomplish the work covered under the preceding bullets but are not produced by the prime contractor or major subcontractors performing the work (e.g., certifications and education, skilled trades, and workforce development programs, and tooling manufacturing). - Missile & Munitions Production: The DoD has identified several issues where Title III of the DPA is the most expedient and cost-effective solution to address a DIB constraint. Many of these constraints are shared across multiple munitions and missile systems. Examples of constraints include limited specialized testing equipment and capacity constraints for specialized missile components, such as precision ball bearings, solid rocket motors, gas turbine engines, and forging production equipment for artillery shells. $246 million of the FY 2022 Ukraine supplemental funds and the entirety of the other supplementals was allocated to expand domestic capacity for these resources. As of the end of FY 2024, $245.821 million of the FY 2022 Ukraine supplemental funds and $20.700 million of the FY 2024 Israel supplemental funds have been obligated. The program obligated the remaining funds to mitigate these shortfalls in FY 2025. Distributed Bioindustrial Manufacturing Program (DBIMP): This effort supported domestic, modular bio-manufacturing of multiple materials critical to the Department. The Office of the Under Secretary of Defense for Research and Engineering (OUSD(R&E)) is the office of primary responsibility for DBIMP investments. In FY 2024, $60.205 million was used to execute 34 projects to determine manufacturing feasibility of production processes. Additionally, $10.634 million was obligated for dedicated support to develop and execute these efforts. On March 14, 2025, Executive Order 14236, "Additional Rescissions of Harmful Executive Orders and Actions," revoked the Presidential Memorandum of February 27, 2023 (Presidential Waiver of Statutory Requirements Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on Department of Defense Supply Chains Resilience), which waived the Presidential Determination that would have otherwise been necessary to execute DBIMP projects. As a result, the Defense Production Act Purchases (DPAP) program no longer has the authority to execute future DBIMP investment activities, and no additional DPA investments will be made to establish bioindustrial manufacturing capacity. The Department has reprioritized these DPA funds to invest in strategic and critical minerals and materials. Industrial Base Risk Mitigation Projects: - Missile & Munitions Production: Multiple efforts are being scoped to address critical shortfalls in the domestic industrial capability to support DoD missiles and munitions, including facilitizing other sub-tier capabilities such a solid rocket motor production, scaling the hypersonics industrial base, and alleviating foreign source risks for critical chemicals. These investments are supported by Congressional increases of $19.3 million and $70 million in FY 2024 and FY 2025, respectively. Utilizing FY 2024 through 2026 funds, approximately $260 million is planned to support solid rocket motor manufacturing, $75 million is planned to support the hypersonics industrial base, and $117 million is planned to address other missile and munitions shortfalls, including critical chemical production. - Strategic Radiation Hardened Microelectronics: The purpose of this effort is to provide assured capabilities to produce or acquire strategic radiation hardened (SRH) trusted microelectronics in compliance with Department of Defense Instruction 5200.44 to supply critical microelectronic components for necessary radiation environments involved with the acquisition of delivery systems for nuclear weapons. These investments are necessary to support the Department's priority to deter strategic attacks against the United States, Allies, and partners. The first set of projects provide production, engineering, and sustainment services in support of SRH microelectronics fabrication via a Defense Microelectronics Activity (DMEA)-accredited Trusted Supplier using a Trusted flow. $ $130.287 million has been obligated against multiple contracts between FY 2019 through FY 2024. Further efforts are being developed to execute in FY 2025 to ensure the sustainment and advancement of this critical industrial capability. Another effort was initiated in FY 2021 to sustain partially depleted silicon-on-insulator (PDSOI) semiconductor (SCs) capabilities. This supports nuclear modernization systems (Sentinel Program, Long Range Stand Off Weapon, etc.), which require radiation hardened microelectronics; PDSOI is also the most advanced space qualified Complementary Metal-Oxide Semiconductor (CMOS) technology to date. $125.000 million has been obligated to date to accomplish this, and $16.000 million is planned to execute in FY 2025 utilizing prior year funds to qualify the new source for use in space and non-nuclear systems. - Microelectronics Packaging Capabilities: The challenges facing the electronics industrial base are wide-reaching and significant. Commercial industry has trended toward yearly product refreshes and updating technology nodes frequently, leaving legacy DoD systems that must be maintained for decades with severe obsolescence issues. On the opposite end of the spectrum, new systems that desire to integrate the newest technologies face challenges obtaining assured and/or trusted supply as much of the electronics manufacturing supply chain has gone overseas. In addition, domestic suppliers that exist are reluctant to work with unique DoD requirements as it would negatively affect their commercial runs and overall business viability. Advanced packaging and printed circuit boards is the immediate focus of this effort, however the Department is continuing to identify and vet efforts to serve DoD's need for electronic materials, digital/analog/mixed signal integrated circuits, discrete components, displays, power electronic components, electro-optical/IR components, radio frequency components, and other cross-cutting technologies. The President authorized the use of DPA Title III authorities in FY 2023 and all planned FY 2023 and FY 2024 funds of $116.604 million have been obligated to three printed circuit board and advanced packaging projects in FY 2024. The remaining unobligated prior year funds of $0.193 million are planned to be obligated to an existing contract. - Strategic and Critical Materials: DPA Title III is working to strengthen mining and processing capabilities required to support capabilities across the entire defense infrastructure. This includes materials such as arsenic, bismuth, gallium, germanium, graphite, hafnium, indium, magnesium, niobium, titanium, beryllium, cobalt, fluorspar, aluminum, tantalum, zirconium, rhodium, and ruthenium, as well as rare earth elements (REEs) such as terbium, samarium, gadolinium and dysprosium. The intent is to alleviate the Department's reliance on foreign markets for these critical minerals and materials. Important defense applications for the end product of these supply chains include REE permanent magnets, jet fighter engines, missile guidance systems, antimissile defense, space-based satellites, communication systems, and batteries. In FY 2024, $2.514 million was obligated to a tin processing project in concert with Inflation Reduction Act funds. The remaining unobligated FY 2024 and FY 2025 funds will be used to execute investments to secure these materials in FY 2025. Additional investments are currently planned to continue in FY 2026, subject to future appropriations. Additionally, in FY 2025, $5.128 million of FY 2023 funds are planned to be obligated to execute a critical minerals recycling project, $15.000 million of FY 2023 funds are planned to be obligated to execute feasibility studies for graphite, cobalt, and platinum mining, and $10.000 million of FY 2024 funds will be used to invest in aluminum-scandium master alloy production, all of which were Congressional increases. - Casting and Forgings: Investments are planned in the shipbuilding industrial base to support casting and forging requirements to support shipbuilding and other system requirements. $23.000 million of FY 2024 funds will be used to invest in domestic aluminum castings, and $8.000 million of FY 2024 funds will be used to invest in heavy forging capabilities, both of which were Congressional increases. A casting and forging partnership program will be initiated with $50.000 million in FY 2026. - Space Industrial Base: Gaps in the National Security Space industrial supply base are continuously being assessed. Projects are anticipated to execute in FY 2025 to address industrial short falls impacting solar cell substrates, solar cell cover glass, and traveling wave tube amplifiers (TWTA). Additional projects are anticipated to execute in FY 2026. The following projects were reported in the FY 2025 President's Budget Request but are no longer included in the tables in this exhibit because they were fully obligated at the end of FY 2024 and do not have any FY 2024, FY 2025, or FY 2026 funds allocated to them. - Chemical and Biological Defense Capabilities: This effort was intended to posture the Department to rapidly respond to biological incidents by leveraging industrial base partnerships and buying down risks to production optimization efforts. However, on March 14, 2025, Executive Order 14236, "Additional Rescissions of Harmful Executive Orders and Actions," revoked the Presidential Memorandum of February 27, 2023 (Presidential Waiver of Statutory Requirements Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on Department of Defense Supply Chains Resilience), which waived the Presidential Determination that would have otherwise been necessary to execute this project. As a result, the Defense Production Act Purchases program no longer has the authority to execute these investment activities, and this line of effort has been canceled. The funds were reprioritized to other Department priorities. - Energy Storage and Batteries: $15.525 million of FY 2023 funds was obligated to initiate a prototype Energy Storage Systems Campus that convenes a fundamental understanding of raw materials availability within energy storage systems supply chains, optimizes the current manufacturing of batteries via expanded existing production and new trusted battery foundries, and accelerates next-generation energy storage systems to reduce reliance upon China and other States near-monopoly upon critical minerals mining and processing, and battery manufacturing. Future investments in this area were canceled due to limited resources. - Small Unmanned Aerial Systems (sUAS): In June 2019, the President issued a Presidential Determination authorizing the use DPA Title III to strengthen the domestic industrial base for sUAS. The sUAS domestic industrial base has struggled to compete commercially in the midst of dominant foreign competition, and DPA Title III is currently assessing where investments would best remedy the domestic industrial base shortfall and result in an economically viable domestic supplier. $13.630 million was obligated toward nine projects in FY 2021. $5.330 million was obligated to one project in FY 2022. Future investments in this area were canceled due to limited resources. Inflation Reduction Act Supply Chain Risk Mitigation: The Inflation Reduction Act (IRA), signed into law on August 16, 2022, appropriated $500.000 million of supplemental funding for the "enhanced use of the Defense Production Act." The DoD received $250.000 million of the IRA Supplemental, which will be applied to expanding capabilities for domestic mining, mineral processing, and related industrial sectors for large-capacity batteries and other critical material shortfalls identified in the reports pursuant to E.O. 14017. These industrial capabilities will build enduring advantages that will help ensure a resilient defense ecosystem. Similar to the Strategic and Critical Material funding, planned investments were distributed across the same AOIs appropriate to mineral and material supply chains. As of the end of FY 2024, all of these funds have been obligated.

No follow-the-dollar view — this program's awards haven't been crosswalked at high confidence (flows cover 17 of 326 programs). why →

Primary Sources