US President Donald Trump has declared a national emergency over potential foreign threats to America’s bulk power system, signing an executive order aimed at protecting the security, reliability and integrity of electricity infrastructure and equipment.
The order, signed on August 26, targets foreign-produced electrical equipment, software and digital technologies used in the bulk power system that Washington believes could create cybersecurity or operational vulnerabilities.
Foreign equipment faces new restrictions
The executive order invokes the International Emergency Economic Powers Act and the National Emergencies Act, citing an unusual and extraordinary foreign threat linked to bulk power equipment manufactured overseas.
It broadly restricts the purchase or installation of certain foreign-produced equipment where officials determine that it could expose US infrastructure to sabotage, unauthorised access or other forms of disruption.
The restrictions focus on transactions involving foreign nationals or entities considered capable of creating an unacceptable risk to US national security or causing potentially catastrophic damage to critical infrastructure.
The order does not cover facilities responsible for the local distribution of electricity.
The Energy Secretary has also been authorised to impose conditions on the continued use or operation of equipment considered risky. Those decisions are expected to take into account electricity reliability, safety, the availability of replacement equipment and continuity of service.
The Energy Department will develop rules needed to implement the order and identify equipment that could pose the security risks outlined by the administration.
AI and defence production increase electricity demand
The White House said the rapid expansion of advanced manufacturing, artificial intelligence and defence production has increased America’s dependence on components needed to maintain a reliable electricity supply.
The administration argues that continued dependence on foreign suppliers creates vulnerabilities in the US electricity supply chain, particularly as foreign actors seek to exploit weaknesses in critical infrastructure.
The bulk power system supplies electricity supporting national defence, emergency services, critical infrastructure and the wider US economy.
Trump pushes broader supply chain security agenda
The latest order is part of Trump’s wider effort to reduce US dependence on overseas supply chains and strengthen domestic manufacturing.
The administration has used Section 232 measures to impose or increase tariffs on several strategic products, including steel, aluminium, copper, semiconductors, vehicles, timber and pharmaceuticals.
In April 2025, Trump signed an executive order aimed at strengthening the US electric grid. The White House said that measure helped prevent 17,000 megawatts of generating capacity, enough to supply about 12.75 million homes, from being forced offline.
The administration has also taken steps in 2026 to strengthen US capabilities in artificial intelligence, defence supply chains, critical minerals and drone manufacturing.
The White House said these measures are intended to protect national security while ensuring that the US has access to reliable electricity and critical materials needed for economic and military strength.
Energy security becomes national security issue
The latest executive order reflects the growing importance Washington places on protecting the electricity grid from foreign interference.
As electricity demand rises because of data centres, AI development, advanced manufacturing and defence production, the administration is seeking greater control over the equipment and technology underpinning the US power system.
The move could lead to tighter scrutiny of foreign-made electrical equipment and greater investment in domestic alternatives as the government seeks to reduce potential vulnerabilities across America’s critical energy infrastructure.