Trump invokes the Defense Production Act to put $150 million into US refining

President Donald Trump invoked the Defense Production Act to spend $150 million on domestic gas and diesel production, with the stated aim of lowering fuel prices¹. “In more breaking news, my administration is using the Defense Production Act to release $150 million to increase American refining capacity,” Trump told a rally in Sioux City, Iowa⁷. He told the crowd the money would increase refinery capacity “to produce more diesel”⁶.

The White House published a presidential determination under Section 303 of the Defense Production Act of 1950 on domestic petroleum production, refining and logistics capacity⁴. The memorandum, addressed to the Secretary of War, cites Executive Order 14156 of 20 January 2025, which declared a national energy emergency under the National Emergencies Act⁴. Trump made the determination on Thursday⁹.

The Energy Department said it would use the funding to restart an American refinery and expand refining capacity^2,3. The department described the plan as one that would add millions more gallons of fuel a day¹³.

Why it matters to investors

The step comes as global energy prices rise¹⁰. Energy Secretary Chris Wright said the funds would be used “strategically and in partnership with private industry”¹³. Wright framed the move as a direct response to years of restricted infrastructure¹⁴. He tied it to energy security and to energy infrastructure he described as critical to national defense^2,12.

The White House presented the step as part of an energy emergency declared in January 2025⁴. Those are the administration’s own justifications; Trump said the aim was to lower fuel prices, and no estimate of the effect on pump prices accompanied the announcement in the sources^1,4.

The setting was political. Trump announced the plan while seeking to boost Republicans in a razor-thin Iowa Senate race⁵. He told the rally he intends to use the act to bolster domestic oil refining capabilities¹¹.

What to watch

Investors in refiners will watch which facility is restarted and how the $150 million is split between restarting capacity and expanding it^1,2. Wright’s reference to partnership with private industry points to company participation, and the terms of that participation have not yet been set out¹³.

The Energy Department separately announced more than $125 million for 63 projects across 16 states³. Trump chose a campaign rally weeks before the midterm vote to announce the refining money^5,11.