With fuel prices still stinging and the midterms days away, the White House is turning again to a law from the Korean War era.
President Donald Trump invoked the Defense Production Act on Thursday, Oct. 22, 2026, to boost domestic oil production as prices remain high amid the war with Iran.
What does the Defense Production Act memo do?
The memo directs Secretary of War Pete Hegseth to make purchases, commit to future purchases and use financial tools to expand the country’s petroleum infrastructure. Hegseth leads the Pentagon, which the administration now calls the Department of War.
That includes exploration and production, storage, marine terminals and the pipelines that gather and move oil and gas. In the memo, Trump determined that resilient domestic production, refining and delivery capacity is essential to national defense.
He wrote that petroleum fuels the armed forces, the industrial base and critical infrastructure, and warned that without immediate federal action, defense capabilities will remain vulnerable to disruption.
The memo states that purchases, commitments and financial support under the law are the fastest and cheapest ways to meet energy needs tied to national security.
What is the Defense Production Act?
Congress passed the Defense Production Act in 1950, during the Korean War. It gives the president broad authority over the domestic industrial base in the name of national security.
Under the Defense Production Act, the president can encourage companies to produce more critical goods through direct purchases, purchase commitments, loans and loan guarantees.
Trump used it during his first term to speed ventilator production during the COVID pandemic, and the Biden administration used it to boost production of energy equipment such as solar panels and transformers.
Has Trump used the law for energy before?
Yes. In April, Trump signed five memos invoking the law for oil production and refining, coal, natural gas, liquefied natural gas and the power grid. The petroleum memo then was directed to the energy secretary and used nearly identical language.
The administration also cited the law earlier this year to restart an oil pipeline off the coast of Southern California.
Earlier this month, Reuters reported that Trump planned a new directive pushing department heads to use the Defense Production Act to raise oil and fuel output, with diesel prices near record highs before the Nov. 3 elections.
Why are oil prices so high?
The war with Iran has disrupted shipping through the Strait of Hormuz, a narrow waterway that normally carries about a fifth of the world’s oil. Because oil trades globally, the disruption has pushed prices up everywhere.
Higher fuel costs have rippled into the price of everything from airline tickets to groceries. Brent crude, the global benchmark, traded above $100 a barrel this week. Prices dipped slightly this week after the administration waived some sanctions on Russia.
The United States already produces more oil than any country in history, but domestic output alone has not shielded Americans from global price swings. Production set another record last year.
What are critics saying about the Defense Production Act move?
Consumer advocates have accused the administration of abusing emergency powers and wasting taxpayer money to favor fossil fuel projects, arguing the approach does little for affordability.
Supporters say expanding domestic energy capacity strengthens national security and protects the military from supply shocks. The White House has said the moves are part of a broader effort to make energy more reliable and affordable.
With voters heading to the polls in less than two weeks, the latest use of the Defense Production Act puts energy costs at the center of the final stretch of the campaign.
