The DPA Workforce and Skilled Labor Needs Act of 2026 aims to strengthen the national defense industrial base by amending the Defense Production Act of 1950 (DPA) to address critical workforce and skilled labor shortages. It mandates that federal agencies with DPA authority identify workforce and skills gaps that hinder the domestic industrial base's capacity to meet national defense objectives. A significant provision allows these agencies to direct a portion of DPA financial assistance towards recruiting, training, placing, or retaining workers in occupations deemed critical for defense, provided the recipient entities maintain performance records. This ensures that DPA funds can directly support the development of a skilled labor force. Furthermore, the bill requires agencies to include in their annual DPA reports a discussion of identified gaps and the use of this new funding authority, along with recommendations for administrative or legislative actions to reduce these labor gaps, including workforce training programs and apprenticeships.