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Trump declares national emergency over foreign power grid equipment

Trump declares national emergency over foreign power grid equipment

Rule Changes

Executive Order 14421 restricts foreign-produced grid equipment and gives the Energy Department power to order replacements

7 days ago: Industry groups question geographic grid equipment restrictions

Overview

Updated 4 days ago

President Trump's Executive Order 14421, signed August 26, declares a national emergency over foreign-made power grid equipment. It blocks transactions involving gear from entities in 24 countries under U.S. arms embargoes or sanctions unless the Energy Department approves, and it lets the Energy Secretary order utilities to isolate or replace foreign-made equipment already in service.

The Energy Department has not published the rule that will set how the order works; it is due by December 24, 2026. On October 30, the department announced a $237 million funding round, called Grid SCALED, to expand domestic production of transformers and other grid parts. On November 4, Utility Dive reported that industry stakeholders backed the order's security goal but warned that restrictions based on where equipment is made, rather than what it can do, could discourage investment.

Why it matters

Utilities may be forced to replace foreign-made transformers and grid gear, with the costs and reliability risks landing on ratepayers.

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Key Indicators

24
Countries whose grid equipment is restricted
Entities in 24 countries under U.S. arms embargoes or sanctions are covered by the order.
2026-08-26
Cutoff for covered transactions
The order applies to transactions initiated after this date, regardless of prior contracts or licenses.
2
Grid emergency orders signed by Trump
EO 13920 in May 2020 and EO 14421 in August 2026.
$237 million
Grid SCALED funding opportunity
DOE's October 30 funding round for domestic grid component manufacturing, including transformers.

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People Involved

Donald Trump
Donald Trump
President of the United States
Signed EO 14421 on August 26, 2026
 Chris Wright
Chris Wright
Secretary of Energy
Holds implementing authority under EO 14421

Organizations Involved

Department of Energy
Department of Energy
Federal agency
Implementing authority under EO 14421

The agency charged with determining which grid equipment transactions are prohibited and with publishing implementing rules.
Federal Register
Federal Register
Government Publication
Published EO 14421 on August 31, 2026

The official daily journal of the U.S. government, where executive orders take legal effect upon publication.

Timeline

May 2020 December 2026

7 events Latest: 7 days ago
Tap a bar to jump to that date

  1. DOE implementing rules due

    Upcoming Expected

    The order requires the Energy Department to publish implementing rules within 120 days of signing, by December 24, 2026.

  2. Industry groups question geographic grid equipment restrictions

    Latest Industry Reaction

    Utility Dive reported that stakeholders supported the order's security intent but said restrictions based on geography rather than function and capability miss the point and could threaten investment.

  3. DOE announces $237 million Grid SCALED funding opportunity

    Funding

    The Energy Department opened funding for refurbishing and reusing grid equipment and for U.S.-made alternative materials, including distribution and power transformers. DOE estimates about $125 million a year in utility savings.

  4. Federal Register publishes EO 14421

    Publication

    Publication makes the order effective and starts the clock on DOE rulemaking.

  5. Trump signs EO 14421

    Executive Order

    The new order declares a national emergency over foreign grid equipment supply and prohibits covered transactions.

  6. Biden revokes EO 13920

    Policy Change

    The Biden administration rescinds the 2020 order before implementing rules took effect.

  7. Trump signs first grid emergency order

    Executive Order

    EO 13920 prohibits certain foreign-produced bulk-power system equipment, citing risks from foreign adversaries.

Scenarios

1

DOE publishes implementing rules by year's end

Likely Resolves by End of 2026

Discussed by: Law firm analyses from Pillsbury, McGuireWoods, and King & Spalding

The order directs DOE to publish rules before the end of 2026. If DOE meets the deadline, the restrictions take operational form: utilities and manufacturers will need to screen transactions against the covered-entity list and seek DOE approval or mitigation agreements for anything in scope. The order also allows DOE to impose conditions on equipment already installed.

2

Court challenge blocks or narrows the order

Possible Resolves by Q2 2027

Discussed by: Legal analysts noting the 2020 TikTok and WeChat IEEPA orders were enjoined in federal court

A manufacturer, utility, or foreign government could sue, arguing the order exceeds IEEPA authority or that the covered-entity designations are arbitrary. The 2020 TikTok and WeChat orders, also issued under IEEPA, were blocked by federal courts, so precedent exists for judicial review of emergency economic orders.

3

DOE pre-qualifies vendors, most transactions continue

Possible Resolves by Q2 2027

Discussed by: The order itself, which directs DOE to establish criteria for pre-qualified equipment and vendors

The order explicitly allows DOE to recognize particular equipment and vendors as pre-qualified, exempting them from the prohibition. If DOE builds a broad pre-qualified list, the practical effect could be modest: most grid equipment continues to flow, with new compliance paperwork and conditions attached to riskier transactions.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

May 2020

EO 13920: The first grid emergency order (2020)

Trump signed EO 13920 in May 2020, declaring a national emergency over foreign-produced bulk-power system equipment and prohibiting transactions involving equipment from foreign adversaries, particularly Russia and China.

Then

The order was revoked by President Biden in April 2021 before implementing rules took effect.

Now

It established the legal template and the 'bulk-power system electric equipment' definition that EO 14421 now revives and expands.

Why this matters now

EO 14421 is a direct successor, restoring and broadening the 2020 restrictions with new authority over equipment already in service.

August 2018 - August 2020

Section 889 of the 2019 NDAA: The Huawei and ZTE ban

Congress banned federal agencies and their contractors from using equipment from Huawei and ZTE, citing national security risks from backdoors and remote access. The ban later extended to requiring rural carriers to rip out existing Huawei and ZTE gear.

Then

Rural carriers received federal funds to replace the equipment.

Now

It set the precedent for ordering removal of foreign equipment already installed in U.S. critical infrastructure, not just blocking future purchases.

Why this matters now

EO 14421 uses the same logic: equipment already in the ground can be ordered removed if it poses a national security risk.

August - November 2020

TikTok and WeChat IEEPA orders (2020)

Trump issued executive orders under IEEPA seeking to ban TikTok and WeChat in the United States. Federal courts enjoined both orders, finding the administration had not adequately distinguished the apps' risks from other data-collection practices.

Then

The bans never took effect; the apps continued operating.

Now

The litigation showed IEEPA-based orders are subject to meaningful judicial review, a precedent for challenges to EO 14421.

Why this matters now

If the grid order is challenged, courts will weigh whether the national emergency finding and covered-entity designations survive scrutiny.

Sources

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+8
Federal Register TIJ News The American Presidency Project Pillsbury Law US Reporter McGuireWoods King & Spalding Davis Wright Tremaine Foley & Lardner POWER Magazine energy.gov publicpower.org Utility Dive The American Presidency Project