Trump issues order banning foreign backdoors in U.S. grid

President Trump signed Executive Order 14420, declaring a national emergency to address vulnerabilities in the United States’ bulk power system and to ban certain foreign-produced equipment for transactions initiated after Aug. 26, 2026.

The order covers transmission lines rated at 69 kilovolts or higher and excludes local electricity distribution networks. It targets hardware, firmware, software and remote-access functions that could permit sabotage, unauthorized access, malicious remote operation or supply disruption of high-voltage grid infrastructure.

Specified technologies include large transformers, inverters, energy storage systems and industrial control systems such as remote terminal units, programmable logic controllers and safety systems, along with related firmware and software.

Under the directive, any acquisition, import, transfer or installation of foreign-produced bulk-power equipment begun after Aug. 26, 2026 is prohibited when the transaction involves entities designated under the order. The document does not name any country.

Administration officials pointed to expanding data center capacity, deployments of artificial intelligence, growth in advanced manufacturing and increases in defense production as factors that raise dependence on reliable grid service and exposure to upstream supply-chain risks. They warned that embedded vulnerabilities in equipment sourced abroad could be exploited to disrupt operations or enable remote access to critical systems.

For equipment already installed before the order takes effect, the Energy Department may require security controls. After consulting with defense and intelligence leaders, the department can instruct grid operators to identify, isolate, monitor, secure, disconnect or replace specific components judged to pose operational threats, while maintaining service continuity and safety.

To support ongoing operations, energy authorities may negotiate mitigation agreements with operators or publish a list of pre-qualified equipment and vendors that would be exempt from the baseline prohibitions. The order directs agencies to define the set of designated entities and the parameters for prohibited transactions, and it allows for exemptions through negotiated mitigation or pre-qualification.

The structure of the order resembles a 2020 Trump-era bulk-power directive that led to a Department of Energy prohibition on certain entities; that prior prohibition was later revoked after a review by the subsequent administration. Officials described the current directive as focused on supply-chain vulnerabilities and embedded hardware risks rather than only on active network intrusions.

Industry participants that own or operate transmission-level assets, along with large power users such as data centers and manufacturing facilities, will need to review vendor relationships and planned equipment acquisitions for compliance. The Energy Department’s authority to compel mitigations for legacy equipment means operators must inventory installed systems and be prepared to implement monitoring, isolation or replacement actions that meet departmental risk criteria.

Enforcement details, a list of covered vendors and equipment, and the identity of designated entities are expected to be clarified as the Energy Department and other agencies carry out implementation of the order.