President Donald Trump announced on Thursday that he would invoke the Defense Production Act to expand domestic oil refining capacity, aiming to address record-high diesel and gasoline prices. In a memorandum directed to Secretary of Energy Pete Hegseth, Trump directed federal agencies to prioritize and expand U.S. oil refinery operations, including exploration, production, storage, and pipeline infrastructure. The move follows an October 22 memorandum in which Trump declared that ensuring resilient domestic petroleum production was essential for national defense.
Immediate Action & Core Facts
On Thursday, Trump invoked the Defense Production Act to direct federal support for expanding U.S. oil refining and production capacity. The memorandum, addressed to Secretary Hegseth, outlined steps to increase domestic petroleum infrastructure, including exploration, refining, storage, and pipeline networks. The action builds on an October 22 memorandum in which Trump cited national security concerns as justification for federal intervention to stabilize fuel supplies.
Policy Rationale & Legal Authority
Trump’s memorandum stated that petroleum fuels the U.S. Armed Forces, industrial base, and critical infrastructure, and that without immediate federal action, national defense capabilities remained vulnerable to disruption. The Defense Production Act, enacted during the Cold War, grants the president authority to direct domestic industries to prioritize production of critical goods through purchases, loans, loan guarantees, and other financial instruments. The president previously issued Executive Order 14156 in January 2025, declaring a national emergency under the National Emergencies Act, citing inadequate energy production and refining capacity as an “unusual and extraordinary threat” to the economy and national security.
Broader Context & Political Implications
The announcement was made during a campaign rally in Sioux City, Iowa, where Trump framed the move as a response to elevated fuel prices amid ongoing geopolitical tensions, including the Iran conflict. The Defense Production Act has been used historically to address supply chain disruptions, though its application to energy policy remains a subject of debate. The memorandum did not specify the exact financial commitments or timelines for implementation, leaving details subject to further federal action.