President Donald Trump, facing rising oil-price pressure tied to the Iran war, on Sunday issued measures allowing federal funding for energy-sector projects.
Bloomberg News and other outlets reported that Trump released five presidential memorandums invoking the Defense Production Act, targeting U.S. oil production and refining, coal supply chains, natural gas transportation and power-grid infrastructure. The actions allow the Energy Department to direct federal funds to those areas.
A White House official told Bloomberg the memorandums would let the administration 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 law passed last year under the Trump administration, according to the report.
In the memorandums, Trump cited his declaration of a national energy emergency shortly after taking office, saying ensuring resilient domestic oil production and refining capacity is critical to U.S. defense readiness. He warned that without immediate federal action, U.S. defense capabilities would remain at risk of disruption.
He also stressed that securing natural gas and liquefied natural gas is important to U.S. defense and allies’ energy security, adding that insufficient natural gas and LNG export capacity could expose the United States and its partners to danger in a crisis.
The Defense Production Act was enacted in 1950 during the Korean War and gives the president authority to intervene to expand private-sector production. It was introduced as federal power to direct industry was strengthened after disruptions in military supplies, the report said.
The move was widely 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 as energy prices have surged.
Trump has previously used the law for energy policy, including efforts to restart offshore crude production off Southern California. During the 2020 COVID-19 outbreak, he invoked it to expand ventilator production. The previous Joe Biden administration also used the act to boost production of energy technologies such as solar panels and transformers.
* This article has been translated by AI.
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