Executive Order 14420 Declares Bulk-Power System National Emergency
President invokes IEEPA/NEA to bar or condition purchases of foreign-made bulk-power equipment from China, Iran, Russia, and other Covered Foreign Entities, with DOE implementing regulations and FAR amendments to follow.
On August 26, 2026, the President issued Executive Order 14420, declaring a national emergency over foreign threats to the U.S. bulk-power system. Citing the rise of data centers, advanced manufacturing, AI, and defense production, the Order invokes IEEPA and the National Emergencies Act to create a new security-review regime for foreign-made grid equipment. Section 2(a) prohibits transactions involving bulk-power system electric equipment (defined to include substation hardware, large transformers, utility-scale inverters, and associated software and remote-access capabilities) designed, developed, manufactured, or supplied by persons linked to a Covered Foreign Entity—countries subject to a U.S. arms embargo or sanctions (including China, Iran, Russia) or others designated by the Secretary of Energy. Section 2(b) authorizes conditioning continued use of legacy foreign equipment already on the grid, with phased compliance possible. The Order also directs DOE to recommend FAR revisions within 180 days to favor U.S.-manufactured energy infrastructure, with the FAR Council to propose amendments 90 days thereafter. Sophisticated counsel should flag immediate supply-chain mapping, contract rep/warranty and termination review, and licensing exposure to clients across generation, transmission, equipment manufacturing, data center developers, and federal energy contractors.