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White House Weighs Using Defense Production Act to Expand U.S. Refining Capacity

The proposal would let the president direct federal funds to speed refinery upgrades and reduce record‑high diesel prices.

Overview

  • The administration is actively considering invoking the Defense Production Act to push more refining output after recent White House talks with major refiners, but no formal invocation has been made.
  • President Trump issued an April determination that opened DPA authority for petroleum and the administration issued follow-up energy actions in early September to broaden those powers.
  • U.S. refineries are operating near full capacity, about 98% by EIA estimates, leaving little spare room to absorb outages and contributing to diesel prices that have topped $6 a gallon.
  • Refining executives urged officials to prioritize faster permitting, regulatory changes, and efficiency upgrades or expansions at existing plants because new refineries take years and cost billions to build.
  • A proposed 168,000‑barrel‑per‑day Brownsville, Texas project has emerged as a test case and draws private partners and reported ties to Trump family investors, raising questions about how DPA funding or other federal support might be allocated.