President Donald Trump has signed an executive order declaring a national emergency to safeguard the U.S. bulk-power system, citing cybersecurity and other security threats. The order, titled "Declaring a National Energy Emergency to Secure the United States Bulk-Power System," aims to prohibit the acquisition, importation, transfer, or installation of certain foreign-produced equipment, software, and systems if they are determined to pose a significant national security risk.
The White House issued a fact sheet explaining that the order generally forbids specific foreign-produced bulk-power system electric equipment, including associated critical software and digital capabilities, that could present cybersecurity or operational risks. Alternatively, it conditions such purchases and installations to mitigate identified risks.
This executive order is seen as a response to concerns about Chinese-made equipment within U.S. energy infrastructure, continuing a trend from the Trump administration to restrict such technology. The order specifically mentions that minimal restrictions on foreign-produced bulk-power system electric equipment allow some foreign entities to create and exploit vulnerabilities, such as digital backdoors that could enable remote access.
China is a significant player in the power transformer manufacturing sector and accounts for 85% of the global solar supply chain production capacity, according to the International Atomic Energy Agency. In 2024, then-FBI Director Christopher Wray informed Congress that hackers were pre-positioning themselves in small office and home routers, with the electricity grid identified as a target in a potential conflict between China and the United States.
This is not the first time the Trump administration has addressed this issue; near the end of his first term, a similar executive order was signed to limit the purchase of foreign-made bulk-power equipment. However, the Biden administration later suspended that order to review its scope and subsequently revoked and replaced a related Department of Energy order, as some utilities had found compliance with the 2020 executive order challenging.
Under the new order, the Department of Energy has 120 days to develop and implement rules, in consultation with other key departments.
