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Trump Invokes Defense Production Act to Allocate $150 Million for U.S. Refining Capacity
By Drooid · · How we work
Presidential Memo Designates Oil Production as Essential to National Defense and Releases $150 Million
On October 22, President Donald Trump issued a memorandum declaring domestic petroleum production, refining, pipelines, storage and marine terminals “essential to the national defense.” The memo invoked Section 303 of the Defense Production Act, authorizing up to $150 million in Title III funds for oil-related projects. Implementation was directed to Defense Secretary Pete Hegseth and Energy Secretary Chris Wright.
Background & Context
The DPA has been used since the 1950s to mobilize industrial capacity for defense. In April 2025, the administration previously classified petroleum production and logistics as defense-critical, waiving several procedural requirements. The latest action follows a rise in gasoline and diesel prices after the United States and Israel’s February strike on Iran and subsequent Ukrainian attacks on Russian refineries, which tightened global fuel supplies. With the November 3 midterm elections looming, the administration has highlighted fuel costs as a campaign issue.
Data & Statistics
- Funding: $150 million authorized under the DPA, drawn from a $1 billion pool set aside for energy projects deemed vital to national security.
- Production baseline: The United States averaged 13.6 million barrels of crude per day in 2025, the world’s largest output.
- Price snapshot: Iowa’s average gasoline price was $4.12 per gallon (AAA) and diesel $6.18 per gallon.
- Related program: The “Harvest Fuel Relief Program” provides $8 billion to offset diesel costs for farmers.
Official Statements & Responses
Vice President JD Vance linked the DPA authority to a planned expansion of Delek U.S. Holdings’ refinery in Tyler, Texas, though neither the White House nor Delek disclosed the specific funding amount or expected capacity increase.
Conflicting Reports & Gaps
- Regional expectations: Hoosier Enquirer notes that BP’s Whiting refinery in Indiana could be a logical beneficiary, yet the memo names no Indiana facility.
- Capacity claims: The promise of “millions of gallons per day” from the $150 million allocation lacks publicly disclosed calculations, prompting calls for transparency.
- Timeline: The memo was signed on October 22, but refinery expansions typically require months or years, limiting any immediate impact on pump prices ahead of the November 3 election.
Verbatim Quotes
- “I was in Iowa making a speech… and I looked over and passed two gas stations, and I looked at the top of the pumps, and it was $1.95 a gallon, and the other one was $1.85 a gallon,” — Donald Trump
- “Two weeks ago I also signed an order waiving off-road requirements for red dye diesel, allowing farmers, truckers and anyone else to fill up diesel totally tax-free,” — Donald Trump
What’s Next
The DOE has indicated that the list of funded projects will be released “in the near future.” The November 3 midterm elections will test whether the administration’s fuel-price narrative influences voter sentiment. Energy market observers note that near-term gasoline and diesel prices will remain tied to geopolitical developments, particularly the ongoing conflict with Iran.