US President Donald Trump signed Executive Order 14420 on August 26, 2026, declaring a national emergency over foreign supplies of large power system electrical equipment, citing an unusual and extraordinary threat to US national security, foreign policy and the economy. The order prohibits US procurement or installation of certain foreign-made large power system equipment and related software.

The new policy focuses on bulk power transmission systems rated at 69kV and above, explicitly excluding local distribution facilities for residential, commercial and industrial use. The control list covers core grid equipment including battery energy storage systems, utility-scale grid-connected inverters, substation transformers, generator sets, high-voltage switchgear and industrial control systems, distributed control systems and intelligent electronic devices.

Supporting software, firmware, remote access permissions and full lifecycle operations and maintenance update systems are also included in the risk assessment scope, extending regulatory oversight from individual hardware to the entire digital and operational chain.

The executive order prohibits US entities from purchasing, importing, transferring or installing power equipment designed, produced or supplied by foreign entities under jurisdiction. For foreign power equipment already in operation before the policy took effect, the US Department of Energy is authorized to implement measures including inspection and monitoring, risk isolation, security hardening, phased replacement or removal, balancing grid stability with policy implementation pace.

The new policy also establishes a flexible compliance mechanism, allowing transactions to pass compliance review through special risk mitigation plans. A pre-qualified equipment and supplier whitelist system will be established for differentiated regulation.

The Department of Energy must issue implementing rules within 120 days, clarifying regulated entities, review standards and exemption procedures. Within 180 days, it must push for amendments to the Federal Acquisition Regulation to establish a preference for US-made power equipment and strengthen self-reliance of energy infrastructure.