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United States declares national emergency regarding bulk-power system

Authorizes the Department of Energy to restrict or require mitigation of certain foreign-produced bulk-power system equipment

august 27, 2026

President Trump on August 26, 2026, signed Executive Order 14420 declaring a national emergency under the International Emergency Economic Powers Act (IEEPA) and the National Emergencies Act with respect to risks associated with foreign-produced bulk-power system electric equipment.

The order authorizes the Department of Energy to:

  • Prohibit certain acquisitions, importations, transfers, or installations of foreign-produced bulk-power system electric equipment, including associated software, firmware, digital services, maintenance services, and remote-access capabilities, when the equipment is linked to a covered foreign entity and is determined to pose specified national security, cybersecurity, infrastructure, or supply chain risks
  • Impose conditions on the continued use of covered equipment already in operation, including requirements to identify, monitor, secure, replace, or remove such equipment
  • Publish implementing regulations within 120 days and identify equipment that may pose risks and develop recommendations to address those risks
  • Develop recommendations for federal procurement policies that would prioritize U.S.-manufactured energy infrastructure

The order applies to the bulk-power system, including transmission facilities rated at 69 kV or more, but does not apply to facilities used for local distribution of electric energy.

Read a related White House release.

For more information, contact a professional with KPMG Trade & Customs services:

 

Andrew Siciliano
Partner, U.S. & Global Practice Leader

E: asiciliano@kpmg.com

Doug Zuvich
Partner

E: dzuvich@kpmg.com

Irina Vaysfeld
Principal

E: ivaysfeld@kpmg.com

John L. McLoughlin
Principal

E: jlmcloughlin@kpmg.com

Luis (Lou) Abad
Principal

E: labad@kpmg.com

George Zaharatos
Principal

E: gzaharatos@kpmg.com

Christopher Young
Principal

E: christopheryoung@kpmg.com

Amie Ahanchian
Principal

E: aahanchian@kpmg.com

Gisele Belotto
Principal

E: gbelotto@kpmg.com

Steve Brotherton
Principal

E: sbrotherton@kpmg.com

Jessica Libby
Principal

E: jlibby@kpmg.com

Dawn Olesky
Principal

E: dolesky@kpmg.com

Frances Xing
Principal

E: francesxing@kpmg.com

 

 

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