President Trump signed Executive Order 14420 on August 26, 2026, directing the Department of Energy to block or restrict transactions involving certain foreign-made electric power equipment used in U.S. bulk-power systems. The order focuses on gear linked to "Covered Foreign Entities," primarily entities tied to China or countries under U.S. arms embargoes, when such equipment poses undue risks to national security or critical infrastructure.
The Department of Energy must publish implementing regulations within 120 days and develop specific prohibition determinations before any restrictions take effect. The order applies to transactions initiated after August 26, 2026, but also allows retroactive conditions on equipment already installed. Violations could carry civil and criminal penalties under the International Emergency Economic Powers Act.
The targeted equipment includes transformers, inverters, battery storage systems, generators, and industrial control systems used in substations, control rooms, and power stations. The order builds on a 2020 measure that was later suspended and revoked by the Biden administration.
