Trump Invokes DPA to Expand U.S. Petroleum and Fuel Infrastructure

On October 22, 2026, President Donald Trump issued a presidential memorandum invoking Section 303 of the Defense Production Act of 1950 (DPA) to expand domestic petroleum production, refining, and logistics capacity. The determination describes these capabilities—including exploration and production, gathering and transmission pipelines, storage, and marine terminals—as industrial resources essential to national defense. It authorizes the federal government to use purchases, purchase commitments, financial support for developing production capabilities, and other Section 303 actions to address the stated need. The administration cited $150 million in federal spending to increase gasoline and diesel production, while the memorandum waived specified statutory requirements under Section 303.

The memorandum builds on Executive Order 14156, issued on January 20, 2025, which declared a national energy emergency. The president’s determination argues that industry cannot reasonably provide the needed capabilities in a timely manner because of constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply-chain limitations. It characterizes petroleum as critical to the armed forces, industrial base, and essential infrastructure, and says federal action is needed to avert a shortfall that could severely impair national defense capability. The action therefore frames energy infrastructure not only as a commercial capacity issue, but as a defense-industrial-base requirement.

For contractors and suppliers, the scope points to a broad set of potential implementation areas: domestic production and refining capacity, pipeline systems, storage assets, marine terminals, and related logistics. Companies with projects or capabilities in these categories can map their assets to the determination and monitor the U.S. Department of Energy (DOE) and other federal channels for implementation details. DOE anticipates millions of additional gallons of refining output per day, but the announcement does not identify how that output would be allocated, which facilities would participate, or what procurement or financial instruments will be used in practice.

The distinction between authorization and an actual procurement is important. No solicitation, award, eligibility criteria, or funding schedule has been announced, and the $150 million figure should not be treated as a contract ceiling, a facility-specific award, or a guaranteed funding pool for any particular company. Delek US Holdings’ refinery in Tyler, Texas, has been identified as a potential focus, not as an award recipient. Vice President JD Vance described the administration’s stated production objective: “We want millions of gallons of commercial-grade and military-spec fuel to come out of this refinery, in addition to what it’s already producing.” That statement signals interest in both commercial-grade and military-spec fuel output, but does not establish a commitment to Delek or a defined acquisition pathway.

• Authority and mechanism: The president invoked Section 303 of the DPA, enabling federal purchases, purchase commitments, financial support, and other authorized action to expand domestic petroleum capacity.
• Announced spending: The announcement cites $150 million to increase gasoline and diesel production; implementation details, distribution, and a funding schedule have not been provided.
• Covered infrastructure: The determination includes exploration and production, gathering and transmission pipelines, storage, marine terminals, refining, and associated logistics.
• National defense rationale: The administration cites defense readiness, industrial-base needs, constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply-chain limitations.
• Expected output: DOE anticipates millions of additional gallons of refining output per day, but the announcement does not specify timelines, participating facilities, or allocation arrangements.
• Potential facility focus: The Delek US Holdings refinery in Tyler, Texas, has been mentioned as a possible focus; no award or guaranteed funding to Delek has been announced.
• Fuel specifications: Vice President JD Vance said the objective includes additional commercial-grade and military-spec fuel, beyond the refinery’s existing production.
• Contractor action: Firms should map relevant domestic projects and capabilities to the covered asset categories and monitor agency implementation notices before assuming an opportunity is available.
• Procurement caution: A DPA determination is not itself a competed solicitation or contract award; contractors should distinguish authorization from a specific procurement, eligibility decision, or funding commitment.