Trump declares emergency, moves to block some foreign-made equipment from grid

President Trump signed an executive order declaring a national emergency over the security of the country's power grid. The order sets up rules to block utilities from connecting some foreign-made equipment to the "bulk power system" — the large-scale network of power plants and transmission lines that moves electricity across the country, as opposed to the local wires that run to individual homes. Equipment covered includes transformers, batteries, inverters, and related software. The Department of Energy has 120 days to write the specific rules.

The order also opens the door to restrictions on equipment already installed, meaning the Energy Secretary could set conditions on how existing foreign-made grid gear keeps operating or gets serviced. The stated concern is sabotage or unauthorized access tied to foreign-made components, especially as data centers and AI drive up electricity demand. China currently makes 80% or more of the world's supply of some grid equipment, including lithium-ion battery cells and certain solar parts.

This order targets the large-scale grid, not the equipment inside your house, so it does not directly affect home systems like rooftop solar panels or backup batteries. But it could ripple into utility costs and supply chains over time, since utilities plan to spend over a trillion dollars on grid upgrades in the next few years. Equipment manufacturers say they still need clarity on details, particularly how software and digital products would be judged for country of origin. There is no homeowner deadline or program tied to this news right now.