President Donald Trump, facing pressure from rising oil prices tied to the Iran war, on Sunday ordered steps that would allow federal money to be directed to energy projects.
Bloomberg News and other outlets reported that Trump issued five presidential memorandums citing the Defense Production Act, targeting domestic oil production and refining, coal supply chains, natural gas transportation and power-grid infrastructure. The moves allow the Energy Department to deploy federal funding in those areas.
A White House official told Bloomberg that the memorandums would enable the administration to use tools such as energy purchases and financial support to address delays, funding shortfalls and market barriers affecting industry.
The funding is expected to come from a large spending package the Trump administration passed last year, the reports said.
In the memorandums, Trump referenced his declaration of a national energy emergency shortly after taking office and said ensuring resilient domestic oil production and refining capacity is critical to U.S. defense readiness. He warned that without immediate federal action, U.S. defensive capabilities would remain at risk of disruption.
He also emphasized the importance of securing natural gas and liquefied natural gas for U.S. defense and allies’ energy security, saying insufficient export capacity for natural gas and LNG could expose the United States and its partners to danger during a crisis.
The Defense Production Act, enacted in 1950 during the Korean War, gives presidents authority to intervene to expand private-sector production. It was introduced as the federal government sought stronger powers to prevent disruptions in supplies of military goods.
The latest action is being interpreted as a response aimed at curbing oil price increases following Iran’s blockade of the Strait of Hormuz. Trump has also faced pressure to push for an early end to the war amid the surge in energy prices.
Trump has previously used the act for energy policy, including efforts to restart offshore crude production off Southern California. He also invoked it in 2020 to expand ventilator production during the COVID-19 outbreak. The previous Joe Biden administration likewise used the law to boost production of energy technologies such as solar panels and transformers.
* This article has been translated by AI.
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