As Oil Prices Soar and Criticism Mounts, Trump Announces "Special Measures"...Invokes Wartime Law from Korean War Era

U.S. President Donald Trump has taken action to address the surge in energy prices following the aftermath of the Iran war. He announced that he would invoke the wartime authority known as the Defense Production Act (DPA), which was established during the Korean War, to expand fossil fuel production and provide funding for energy infrastructure. This special measure was introduced in response to mounting public criticism over the Iran war due to rising oil prices ahead of the upcoming midterm elections in November.

On the 20th (local time), President Trump announced five presidential memoranda under the DPA that authorize the allocation of federal funds to U.S. oil production and refining, the coal supply chain, natural gas transmission, and power grid infrastructure.

U.S. President Donald Trump. Photo by Reuters Yonhap News

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Under these memoranda, the U.S. Department of Energy will now be able to provide federal funding to these sectors. The funding will be sourced from the resources secured through last year’s large-scale tax cut legislation, the "One Big Beautiful Bill Act (OBBA)." The funds can be used to purchase equipment for coal-fired power plants, refining facilities, gas turbine and transformer manufacturing plants, and other related equipment.

President Trump referenced his declaration of a national energy emergency upon taking office in January of last year, stating, "Oil, coal, and natural gas production in the United States must be expanded to prevent shortages of industrial resources or critical technological items that could seriously undermine national defense capabilities." He further emphasized, "Securing resilient domestic capacity for oil production, refining, and logistics is essential for U.S. defense readiness," and warned, "Without immediate federal government action, our defense capabilities will remain persistently vulnerable."

He particularly highlighted, "The production capacity of natural gas and liquefied natural gas (LNG) is extremely important for sustaining defense operations and ensuring the security of our allies," adding, "Should there be insufficient pipeline, processing facilities, or export capacity, both the United States and its allies would face crises with no defenses in place."

White House spokesperson Taylor Rogers stated that this measure would help fulfill President Trump’s promise to fully leverage America’s energy dominance to protect economic and national security, explaining, "With the use of federal funds, we can strengthen the power grid infrastructure and provide stable, affordable, and secure energy supply."

The DPA grants the president the authority to take unilateral actions to strengthen U.S. defense capabilities, such as directing private companies to increase the production of essential industrial materials. It was enacted in September 1950 during the Korean War to expand the federal government’s intervention powers as it struggled to ensure timely supply of military goods.

President Trump’s decision to invoke the DPA, which was established over 70 years ago, is aimed at curbing oil price increases caused by the blockade of the Strait of Hormuz. The surge in energy costs following the Iran war is creating a burden for the White House and the Republican Party ahead of the November midterm elections. Additionally, the rapid expansion of artificial intelligence (AI) is driving a sharp increase in electricity demand, leading to higher electricity rates. Former President Joe Biden also referenced the DPA to boost U.S. production of items such as solar panels and transformers, and the Trump administration previously invoked the DPA to ramp up ventilator production during the COVID-19 pandemic.

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