Trump invokes Defense Production Act for petroleum capacity

President Trump issued a determination on Thursday under Section 303 of the Defense Production Act declaring domestic petroleum production, refining and logistics capacity essential to national defense, waiving the section's normal requirements and directing implementation through purchases, purchase commitments and financial support, with 150 million dollars of spending detailed at an Iowa rally.

Why it matters: The determination gives the administration a fast funding route into refining, pipelines and storage at a moment when diesel averages 6.32 dollars a gallon and global refining capacity is offline, though it names no projects and its effect depends on awards that have not yet been announced.

Data as of White House presidential determination published October 22, 2026, read in full at whitehouse.gov; determination figures and wording are the document's own. The 150 million dollar spending figure comes from the president's remarks at a Sioux City, Iowa rally as reported by The Hill, and the Energy Department output expectation from its press release as quoted there; neither figure appears in the determination itself. Developing item.

President Trump determined on Thursday that domestic petroleum production, refining and logistics capacity, including exploration and production, gathering and transmission pipelines, storage and marine terminals, are essential to the national defense under Section 303 of the Defense Production Act, finding that without presidential action industry cannot provide those capabilities in a timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks and supply chain limitations. The memorandum, addressed to the Secretary of War, waives the requirements of Section 303(a)(1) through (a)(6) under the national energy emergency declared in Executive Order 14156 and directs implementation through purchases, purchase commitments and financial instruments, naming no specific projects.

At a campaign rally in Sioux City, Iowa on Thursday evening, Trump said the government would spend 150 million dollars toward boosting domestic gas and diesel production, The Hill reported, and the Energy Department said the injection was expected to increase United States refining output by millions of gallons per day. The move follows last week’s announcement that the act would be used to expand capacity at a Texas refinery owned by Delek US Holdings, and a broader April determination covering petroleum, natural gas, coal and grid infrastructure; United States diesel pump prices averaged 6.32 dollars a gallon on Friday, per AAA figures cited by TIME, with Brent crude at 114.47 dollars a barrel, up 1.2 percent, after a five-month high on Thursday.

Trump invokes Defense Production Act for petroleum capacity

Sources