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Defense Production Act of 1950

The Defense Production Act of 1950 (Pub. L.Tooltip Public Law (United States) 81–774) is a United States federal law enacted on September 8, 1950, in response to the start of the Korean War.[1] It was part of a broad civil defense and war mobilization effort in the context of the Cold War. Its implementing regulations, the Defense Priorities and Allocation System (DPAS), are located at 15 CFR §§700 to 700.93. Since 1950, the Act has been reauthorized over 50 times.[1] It has been periodically amended and remains in force.

Defense Production Act
Long titleAn Act to establish a system of priorities and allocations for materials and facilities, authorize the requisitioning thereof, provide financial assistance for expansion of productive capacity and supply, provide for price and wage stabilization, provide for the settlement of labor disputes, strengthen controls over credit, and by these measures facilitate the production of goods and services necessary for the national security, and for other purposes
Enacted bythe 81st United States Congress
EffectiveSeptember 8, 1950
Citations
Public law81-774
Statutes at Large64 Stat. 798
Codification
Titles amended50 U.S.C.: War and National Defense
U.S.C. sections created50 U.S.C. Chapter 55
Legislative history
  • Introduced in the House as H.R. 9176

Provisions edit

The Act currently contains three major sections. The first authorizes the president to require businesses to accept and prioritize contracts for materials deemed necessary for national defense, regardless of a loss incurred on business.[citation needed] The law does not state what would occur if a business refuses or is unable to complete a request on time. However, any person who performs any act prohibited or willfully fails to perform any act required by the Defense Production Act may be charged with a felony that results in a fine up to $10,000 or imprisonment for up to one year or both per violation.[2][3] The second section authorizes the president to establish mechanisms (such as regulations, orders or agencies) to allocate materials, services and facilities to promote national defense. The third section authorizes the president to control the civilian economy so that scarce and critical materials necessary to the national defense effort are available for defense needs.[4][5][6]

The original act included four other titles that are expired and repealed under current law that allowed the president to seize private property under Title II, fix wages and prices and implement rationing of goods under Title IV, use force to settle labor disputes under Title V, and control real estate credit under Title VI. Although the president can no longer fix wages and prices of goods, the president can still order to prevent hoarding and selling of designated items "in excess of prevailing market prices" under Title I in section 102 of the Defense Production Act.[7]

The president's designation of products under the jurisdiction of the DPA is the authority of the Act most often used by the Department of Defense (DOD) since the 1970s. Most of the other functions of the Act are administered by the Office of Strategic Industries and Economic Security (SIES) in the Bureau of Industry and Security in the Department of Commerce.[8]

The Defense Priorities and Allocations System institutes a rating system for contracts and purchase orders.[9] The highest priority is DX, which must be approved by the Secretary of Defense. The next level down is DO, and below that are unrated contracts.

Under section 721 of the Defense Production Act of 1950, an inter-agency committee known as the (CFIUS) Committee on Foreign Investment in the United States is authorized to investigate and review transactions involving foreign investment and/or real estate transactions by foreign persons and/or entities in the United States. Civil penalties may result in up to $250,000 per violation or the value of the transaction, whichever is greater, on any persons and/or entities that willfully violated CFIUS regulations, and any mitigation orders, conditions, or agreements imposed by CFIUS. The CFIUS serves as an administrative body to refer and advise the president should the transaction need to be rejected or limited. The law only grants the president the authorization and decision to reject or limit the transaction within a 15-day presidential review period.[10][11][12][13]

Use edit

Korean War edit

The DPA, passed by the U.S. Congress in September 1950, was first used during the Korean War to establish a large defense mobilization infrastructure and bureaucracy. Under the authority of the Act, President Harry S. Truman eventually established the Office of Defense Mobilization, instituted wage and price controls, strictly regulated production in heavy industries such as steel and mining, prioritized and allocated industrial materials in short supply, and ordered the dispersal of wartime manufacturing plants across the nation.[14]

Cold War edit

The Act also played a vital role in the establishment of the domestic aluminum and titanium industries in the 1950s. Using the Act, DOD provided capital and interest-free loans, and directed mining and manufacturing resources as well as skilled laborers to these two processing industries.[15][16] The DPA was also used in the 1950s to ensure that government-funded industries were geographically dispersed across the United States to prevent the industrial base from being destroyed by a single nuclear attack. During the late 1960s and early 1970s, the DPA increasingly was used to diversify the US energy mix by funding the trans-Alaskan pipeline, the US synthetic fuels corporation, and research into liquefied natural gas.[17]

Technological innovation edit

Beginning in the 1980s, the DOD began using the contracting and spending provisions of the DPA to provide seed money to develop new technologies.[18] The DOD has used the act to help develop a number of new technologies and materials, including silicon carbide ceramics, indium phosphide and gallium arsenide semiconductors, microwave power tubes, radiation-hardened microelectronics, superconducting wire, metal composites and the mining and processing of rare earth minerals.[15][19]

FEMA National Security Resource Preparedness edit

In June 1994, President Bill Clinton invoked the law to implement national security resource preparedness during disasters under the advisement of the FEMA director.[20] The order allows FEMA work with other federal departments to order producers and distributors to prioritize resources in preparation of and in times of disasters.

21st century edit

California energy crisis edit

In January 2001, President Bill Clinton invoked the law to force gas suppliers to continue to supply Pacific Gas and Electric Company, the largest California energy provider, with gas regardless of loss as a result of suppliers shutting off gas supplies due to the PG&E's non-payment during the 2000–01 California electricity crisis. The order was later rescinded under the George W. Bush administration but, resulted in the expansion of blackouts in California for several months and PG&E's bankruptcy.[21]

Cyber espionage edit

In 2011, President Barack Obama invoked the law to force telecommunications companies, under criminal penalties, to provide detailed information to the Commerce Department's Bureau of Industry and Security on the use of foreign-manufactured hardware and software in the companies' networks, as part of efforts to combat Chinese cyberespionage.[16]

Materials critical to national defense edit

On June 13, 2017, President Donald Trump invoked the law to classify two sets of products as "critical to national defense". The first referenced "items affecting aerospace structures and fibers, radiation-hardened microelectronics, radiation test and qualification facilities, and satellite components and assemblies".[22][23] The second referenced "items affecting adenovirus vaccine production capability; high strength, inherently fire and ballistic resistant, co-polymer aramid fibers industrial capability; secure hybrid composite shipping container industrial capability; and three-dimensional ultra-high density microelectronics for information protection industrial capability".[24][25]

COVID-19 pandemic edit

On March 18, 2020, in response to the COVID-19 outbreak, President Trump issued an executive order that defined ventilators and protective equipment as "essential to the national defense", the standard required by the DPA.[26][27] Later that day, he indicated that he would not make immediate use of DPA authority, writing, "Hopefully there will be no need"; he indicated that he would do so in a "worst-case scenario".[28][29] Speaker of the House Nancy Pelosi called upon Trump to "immediately use the powers of the DPA" to produce and distribute critically needed hospital equipment.[28][29] On March 20, Trump said that he would use the DPA.[30] The next day General Motors (GM) CEO Mary Barra spoke to Trump administration officials about how GM could support production of ventilators without the use of DPA.[31] This was laid out in an academic paper.[32]

On March 23, Trump issued an executive order classifying "health and medical resources necessary to respond to the spread of COVID-19" as subject to the authority granted by DPA to prohibit hoarding and price gouging.[33][34]

Trump's initial reluctance to use the act's authorities prompted criticism.[35] On March 27, 2020, after negotiations with GM had broken down over costs, estimated at over $1 billion, but primarily due to GM's inability to commit to timely delivery of the number of required ventilators, Trump ordered HHS Secretary Alex Azar to use the DPA to require GM to accept and prioritize contracts for as many ventilators as Azar determines to be appropriate.[36] Trump also named Peter Navarro national policy coordinator for the DPA.[37]

On April 2, Trump said he was invoking the DPA to require 3M, General Electric, and Medtronic to increase its production of N95 respirators.[38][39]

On April 28, Trump announced that he intended to issue an executive order under the Defense Production Act mandating that plants producing beef, pork, poultry, and eggs stay open, a move which also prompted criticism. White House General Counsel Pat Cipollone consulted with various companies "to design a federal mandate to keep the plants open and to provide them with additional virus-testing capacity as well as protective gear," according to Bloomberg News.[40] Trump told the press that the order would "solve any liability problems" for meat-processing plants, protecting them from lawsuits potentially incurred due to employee COVID-19 exposures, though the order provided no such immunity or protections.[41][42] The order gave USDA extraordinary powers to have firms maintain production. The order does not allow companies to ignore safety rules (except for keeping the plants opened), however, and OSHA / CDC guidance remains in force. In September 2020, OSHA fined Smithfield and JBS for failing to take the necessary actions to prevent the spread of coronavirus.[43][44]

On December 8, 2020, more than a month after losing the 2020 presidential election, then-president Trump said that he would invoke the Defense Production Act to produce vaccine doses, but he did not do so before the end of his term.[45]

In January, 2021, President Joe Biden invoked the Defense Production Act on his second day in office to increase production of supplies related to the pandemic, such as protective equipment.[46] On March 2, Biden invoked the DPA again to supply equipment to Merck facilities needed to safely manufacture Johnson & Johnson vaccines.[47]

Wildfire crisis edit

In September 2021, President Biden invoked the Defense Production Act again to supplement the supply of fire hoses, which was needed because of the unusually high occurrence of dangerous wildfires.[48]

Virginia-class attack submarines edit

In December 2021, President Biden invoked the Defense Production Act to scale production and provide the needed parts and labor training to support Virginia-class attack submarines.[49]

Critical mineral supplies edit

In March 2022, President Biden invoked the Defense Production Act to increase the production of minerals necessary for the clean energy transition in the United States, which includes lithium, nickel, cobalt, graphite, and manganese used by large-capacity batteries for energy storage and electric vehicles. The United States currently to date largely relies on foreign sources for the mining and processing of these metals.[50]

Baby formula shortage edit

On May 18, 2022, President Biden invoked the Act in response to the 2022 United States infant formula shortage, requiring manufacturers to prioritize fulfilling orders of formula ingredients to key suppliers before fulfilling other orders. The United States Department of Health and Human Services and the United States Department of Agriculture have also been authorized to use Department of Defense aircraft to import formula to the United States from overseas as long as the formula meet US health and safety standards.[51]

Green energy edit

On June 6, 2022, President Biden invoked the Defense Production Act to accelerate domestic production of green energy technology. The administration responded to growing energy costs caused by Russia's invasion of Ukraine.[52] The invocation came along with a 2-year tariff exemption that ends in June 2024 on solar panels from Cambodia, Malaysia, Thailand, and Vietnam.[53][54] The technology included in Biden's invocation included solar energy; transformers and electric grid components; heat pumps; insulation; and electrolyzers, fuel cells, and platinum group metals.[52]

On November 17, 2023, the US Department of Energy announced $169 Million funded by the Inflation Reduction Act for nine projects at 15 sites to accelerate US-made electric heat pump manufacturing.[55] On February 14, 2024, the US Department of Energy announced a further $63 million funded by the Inflation Reduction Act to accelerate the growth of domestic manufacturing of residential heat pumps, heat pump water heaters, and other heat pump systems and components.[56]

Hypersonics industrial base edit

On March 11, 2023, President Biden invoked the Defense Production Act to accelerate the rebuilding and expansion of the domestic industrial base on hypersonic technologies, which includes "airbreathing engines, advanced avionics position navigation and guidance systems, and constituent materials for hypersonic systems."[57]

Printed Circuit Boards and Advanced Packaging Production Capability edit

On March 27, 2023, President Biden invoked the Defense Production Act to accelerate and assure the production capacity of "printed circuit boards and advanced packaging, their components, and the manufacturing systems that produce such systems and components" as quoted from the memorandum.[58][59]

Artificial Intelligence edit

On October 30, 2023, President Biden invoked the Defense Production Act as quoted via the executive order to "require that developers of the most powerful AI systems share their safety test results and other critical information with the U.S. government" when "developing any foundation model that poses a serious risk to national security, national economic security, or national public health."[60]

Pharmaceutical Supply Chain edit

On November 27, 2023, President Biden announced he would invoke the Defense Production Act "to enable investment in domestic manufacturing of essential medicines, medical countermeasures, and critical inputs that have been deemed by the President as essential to the national defense" as quoted. An initial investment of $35 million is identified by the Department of Health and Human Services (HHS) for domestic production of materials utilized for sterile injectable medicines. In addition, the Department of Defense (DOD) will issue a report on reducing reliance on foreign suppliers that are high-risk to pharmaceutical supply chain.[61]

On December 27, 2023, Biden invoked the Defense Production Act as quoted for "essential medicines, medical countermeasures, and critical inputs."[62]

See also edit

References edit

  1. ^ a b Congressional Research Service, The Defense Production Act of 1950: History, Authorities, and Considerations for Congress April 24, 2019, at the Wayback Machine, updated November 20, 2018, accessed January 17, 2019 fas.org
  2. ^ "The Defense Production Act of 1950, As Amended [50 U.S.C. § 4501 et seq.] Current through P.L. 113-172, enacted September 26, 2014" (PDF). FEMA. (PDF) from the original on March 25, 2020. Retrieved April 28, 2020.
  3. ^ "15 CFR § 700.74 - Violations, penalties, and remedies". Cornell Law School: Legal Information Institute. from the original on May 8, 2020. Retrieved April 28, 2020.
  4. ^ "The Defense Production Act: Choice as to Allocations". Columbia Law Review. 51 (3). New York City: Columbia Law Review Association, Inc.: 350–361 March 1951. doi:10.2307/1119288. JSTOR 1119288.
  5. ^ Lockwood, David E. (June 22, 2001). Defense Production Act: Purpose and Scope (Report). Washington, D.C.: Congressional Research Service.
  6. ^ LeBlanc, Paul (March 18, 2020). "Here's how the 1950 wartime law Trump just invoked to produce medical supplies works". CNN. from the original on March 19, 2020. Retrieved March 19, 2020.
  7. ^ "U.S.C. Title 50 - WAR AND NATIONAL DEFENSE".
  8. ^ Nibley, Stuart (April 1, 2002). "Defense Production Act: The Government's Old but Powerful Procurement Tool". Legal Times.
  9. ^ . guidebook.dcma.mil. Archived from the original on August 17, 2013.
  10. ^ https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius
  11. ^ https://home.treasury.gov/policy-issues/international/the-committee-on-foreign-investment-in-the-united-states-cfius/cfius-excepted-foreign-states
  12. ^ "50 USC 4565: Authority to review certain mergers, acquisitions, and takeovers".
  13. ^ https://crsreports.congress.gov/product/pdf/RL/RL33388
  14. ^ Pierpaoli, Paul G. Jr. (1999). Truman and Korea: The Political Culture of the Early Cold War. Columbia, Missouri: University of Missouri. ISBN 978-0826212061.
  15. ^ a b Mirsky, Rich (June–July 2005). "Trekking Through That Valley of Death—The Defense Production Act". Innovation. from the original on December 25, 2017. Retrieved March 23, 2020.
  16. ^ a b Riley, Michael (November 30, 2011). "Obama Invokes Cold-War Security Powers to Unmask Chinese Telecom Spyware". Bloomberg News. from the original on December 2, 2011. Retrieved March 6, 2017.
  17. ^ Bell, Douglas. ""A Little-known Bill of Great National Significance": The Uses and Evolution of the Defense Production Act, 1950-2020" (PDF). Retrieved July 14, 2020.
  18. ^ National Research Council, Defense Manufacturing in 2010 and Beyond, 1999.
  19. ^ Puko, Timothy (April 26, 2020). . The Wall Street Journal. Archived from the original on April 27, 2020.
  20. ^ https://www.govinfo.gov/content/pkg/WCPD-1994-06-13/pdf/WCPD-1994-06-13-Pg1228.pdf [bare URL PDF]
  21. ^ "- the California Energy Crisis and Use of the Defense Production Act".
  22. ^ Office of the Press Secretary (June 1, 2017). "Presidential Determination to adequately provide critical technology in the space industrial base in a timely manner Pursuant to Section 4533(a)(5) of the Defense Production Act of 1950". whitehouse.gov. Washington, D.C. Retrieved June 2, 2017 – via National Archives.
  23. ^ "Presidential Determination to adequately provide critical technology in the space industrial base in a timely manner Pursuant to Section 4533(a)(5) of the Defense Production Act of 1950". Federal Register. Washington, D.C.: National Archives and Records Administration. June 13, 2017. (PDF) from the original on August 24, 2017. Retrieved June 17, 2017.
  24. ^ Office of the Press Secretary (June 13, 2017). . whitehouse.gov. Washington, D.C.: White House. Archived from the original on December 10, 2017. Retrieved June 17, 2017.
  25. ^ "Presidential Determination to adequately provide critical technology a timely manner Pursuant to Section 4533(a)(5) of the Defense Production Act of 1950". Federal Register. Washington, D.C.: National Archives and Records Administration. June 13, 2017. (PDF) from the original on August 24, 2017. Retrieved June 17, 2017.
  26. ^ Vazquez, Maegan (March 18, 2020). "Trump invokes Defense Production Act to expand production of hospital masks and more". CNN. from the original on March 20, 2020. Retrieved March 20, 2020.
  27. ^ Welna, David (March 18, 2020). "Trump Invokes A Cold War Relic, The Defense Production Act, For Coronavirus Shortages". NPR. from the original on March 19, 2020. Retrieved March 20, 2020.
  28. ^ a b Weixel, Nathaniel (March 19, 2020). "Frustration mounts at President Trump's reluctance to use emergency production powers". The Hill. from the original on March 20, 2020. Retrieved March 20, 2020.
  29. ^ a b Phillips, Amber (March 19, 2020). "What is the Defense Production Act, and why is President Trump getting pressure to use it to fight coronavirus?". The Washington Post. from the original on March 20, 2020. Retrieved March 20, 2020.
  30. ^ Dzhanova, Yelena (March 20, 2020). "Trump invoked the Defense Production Act. Here's how he can use its powers". CNBC. from the original on March 27, 2020. Retrieved March 27, 2020.
  31. ^ Korn, Morgan (March 21, 2020). "Automakers offer to build ventilators as US faces critical shortage". ABC News. from the original on March 24, 2020. Retrieved March 25, 2020.
  32. ^ Baker, James E. (2020). "From Shortages to Stockpiles: How the Defense Production Act Can be Used to Save Lives, Make America the Global Arsenal of Public Health, and Address the Security Challenges Ahead" (PDF). Journal of National Security Law & Policy. 11: 157.
  33. ^ Chalfant, Morgan (March 23, 2020). "Trump signs executive order to prevent price gouging, hoarding of medical supplies". The Hill. from the original on March 25, 2020. Retrieved March 27, 2020.
  34. ^ Trump, Donald J. "Executive Order on Preventing Hoarding of Health and Medical Resources to Respond to the Spread of COVID-19". whitehouse.gov. from the original on January 20, 2021. Retrieved March 27, 2020 – via National Archives.
  35. ^ Rascoe, Ayesha (March 25, 2020). "Trump Resists Using Wartime Law To Get, Distribute Coronavirus Supplies". NPR. from the original on March 25, 2020. Retrieved March 25, 2020.
  36. ^ Byrnes, Jesse (March 27, 2020). "Trump uses Defense Production Act to require GM to make ventilators". The Hill. from the original on March 27, 2020. Retrieved March 27, 2020.
  37. ^ Martin, Jeffrey (March 27, 2020). "Trump Taps Peter Navarro as Defense Production Act Policy Coordinator During Coronavirus Pandemic". Newsweek. from the original on March 29, 2020. Retrieved March 29, 2020.
  38. ^ Walsh, Ben (April 3, 2020). "President Trump Slams 3M, Invokes Defense Production Act". Barron's. from the original on April 3, 2020. Retrieved April 3, 2020.
  39. ^ Sullivan, Peter (April 2, 2020). "Trump to expand use of Defense Production Act to build ventilators". The Hill. from the original on April 4, 2020. Retrieved April 3, 2020.
  40. ^ Jacobs, Jennifer (April 28, 2020). "Trump to Order U.S. Meat Plants to Stay Open Amid Pandemic". Bloomberg News. from the original on April 28, 2020. Retrieved April 28, 2020.
  41. ^ Hemel, Daniel (May 4, 2020). "No, Trump didn't order meat-processing plants to reopen". The Washington Post. Retrieved June 4, 2020.
  42. ^ "How Coronavirus Broke America". Patriot Act with Hasan Minhaj. Season 6. Episode 3. May 31, 2020. Netflix.
  43. ^ "Smithfield appeals OSHA fine for not protecting meat plant employees from COVID-19". September 12, 2020.
  44. ^ . msn.com. September 2020. Archived from the original on September 14, 2020.
  45. ^ "Trump Vows to Use Defense Production Act if Needed for Vaccines". Bloomberg.com. December 8, 2020.
  46. ^ "Executive Order on a Sustainable Public Health Supply Chain". whitehouse.gov. January 21, 2021.
  47. ^ "Remarks by President Biden on the Administration's COVID-19 Vaccination Efforts". March 2, 2021.
  48. ^ "Remarks by President Biden in Briefing with Federal and State Fire Agency Officials". September 13, 2021.
  49. ^ "Memorandum on the Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended". December 21, 2021.
  50. ^ "Memorandum on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended". March 31, 2022.
  51. ^ Kimball, Spencer (May 18, 2022). "Biden invokes Defense Production Act to boost baby formula manufacturing to ease shortage". CNBC. Retrieved May 18, 2022.
  52. ^ a b "President Biden Invokes Defense Production Act to Accelerate Domestic Manufacturing of Clean Energy". Energy.gov. Retrieved June 7, 2022.
  53. ^ Mason, Jeff (June 6, 2022). "Exclusive: Biden to waive tariffs for 24 months on solar panels hit by probe". Reuters. Retrieved June 7, 2022.
  54. ^ "A new Dept of Commerce ruling could slow US solar growth".
  55. ^ "Biden-Harris Administration Announces $169 Million to Accelerate Electric Heat Pump Manufacturing as Part of Investing in America Agenda". Energy.gov. Retrieved November 18, 2023.
  56. ^ https://www.energy.gov/articles/biden-harris-administration-announces-63-million-accelerate-electric-heat-pump
  57. ^ "Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on Airbreathing Engines, Advanced Avionics Position Navigation and Guidance Systems, and Constituent Materials for Hypersonic Systems". March 2023.
  58. ^ "Memorandum on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950, as amended, on Printed Circuit Boards and Advanced Packaging Production Capability". March 27, 2023.
  59. ^ "Defense Production Act Title III Presidential Determination for Printed Circuit Boards and".
  60. ^ "FACT SHEET: President Biden Issues Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence". October 30, 2023.
  61. ^ https://www.whitehouse.gov/briefing-room/statements-releases/2023/11/27/fact-sheet-president-biden-announces-new-actions-to-strengthen-americas-supply-chains-lower-costs-for-families-and-secure-key-sectors/
  62. ^ https://www.whitehouse.gov/briefing-room/presidential-actions/2023/12/27/memorandum-regarding-the-presidential-determination-and-waiver-pursuant-to-section-303-of-the-defense-production-act-of-1950-as-amended-on-essential-medicines-medical-countermeasures-and-critical/

Bibliography edit

  • Bell, Douglas, "'A Little-known Bill of Great National Significance': The Uses and Evolution of the Defense Production Act, 1950-2020." US Army Heritage and Education Center Historical Services Division. Carlisle, PA. July 2020. https://ahec.armywarcollege.edu/documents/Defense_Production_Act_1950-2020.pdf.
  • "The Defense Production Act: Choice as to Allocations." Columbia Law Review. 51:3 (March 1951).
  • Lockwood, David E. Defense Production Act: Purpose and Scope. Washington, D.C.: Congressional Research Service. June 22, 2001.
  • Mirsky, Rich. "Trekking Through That Valley of Death—The Defense Production Act." Innovation. June/July 2005.
  • National Research Council. Defense Manufacturing in 2010 and Beyond: Meeting the Changing Needs of National Defense. Washington, D.C.: National Academy Press, 1999. ISBN 0-309-06376-0
  • Nibley, Stuart B. "Defense Production Act: The Government's Old but Powerful Procurement Tool." Legal Times. April 1, 2002.
  • Nibley, Stuart. "Defense Production Act Speeds Up Wartime Purchases." National Defense. June 2006.
  • Pierpaoli Jr., Paul G. "Truman's Other War: The Battle for the American Homefront." The Organization of American Historians' Magazine of History. Spring 2000.
  • Pierpaoli Jr., Paul G. Truman and Korea: The Political Culture of the Early Cold War. Columbia, Mo.: University of Missouri Press, 1999. ISBN 0-8262-1206-9
  • Pierpaoli Jr., Paul G. "Mobilizing for the Cold War: The Korean Conflict and the Birth of the National Security State." Essays in Economic and Business History. June 1994.

External links edit

defense, production, 1950, canadian, defence, production, minister, public, services, procurement, tooltip, public, united, states, united, states, federal, enacted, september, 1950, response, start, korean, part, broad, civil, defense, mobilization, effort, c. For the Canadian Defence Production Act see Minister of Public Services and Procurement The Defense Production Act of 1950 Pub L Tooltip Public Law United States 81 774 is a United States federal law enacted on September 8 1950 in response to the start of the Korean War 1 It was part of a broad civil defense and war mobilization effort in the context of the Cold War Its implementing regulations the Defense Priorities and Allocation System DPAS are located at 15 CFR 700 to 700 93 Since 1950 the Act has been reauthorized over 50 times 1 It has been periodically amended and remains in force Defense Production ActLong titleAn Act to establish a system of priorities and allocations for materials and facilities authorize the requisitioning thereof provide financial assistance for expansion of productive capacity and supply provide for price and wage stabilization provide for the settlement of labor disputes strengthen controls over credit and by these measures facilitate the production of goods and services necessary for the national security and for other purposesEnacted bythe 81st United States CongressEffectiveSeptember 8 1950CitationsPublic law81 774Statutes at Large64 Stat 798CodificationTitles amended50 U S C War and National DefenseU S C sections created50 U S C Chapter 55Legislative historyIntroduced in the House as H R 9176 Contents 1 Provisions 2 Use 2 1 Korean War 2 2 Cold War 2 3 Technological innovation 2 4 FEMA National Security Resource Preparedness 2 5 21st century 2 5 1 California energy crisis 2 5 2 Cyber espionage 2 5 3 Materials critical to national defense 2 5 4 COVID 19 pandemic 2 5 5 Wildfire crisis 2 5 6 Virginia class attack submarines 2 5 7 Critical mineral supplies 2 5 8 Baby formula shortage 2 5 9 Green energy 2 5 10 Hypersonics industrial base 2 5 11 Printed Circuit Boards and Advanced Packaging Production Capability 2 5 12 Artificial Intelligence 2 5 13 Pharmaceutical Supply Chain 3 See also 4 References 4 1 Bibliography 5 External linksProvisions editThe Act currently contains three major sections The first authorizes the president to require businesses to accept and prioritize contracts for materials deemed necessary for national defense regardless of a loss incurred on business citation needed The law does not state what would occur if a business refuses or is unable to complete a request on time However any person who performs any act prohibited or willfully fails to perform any act required by the Defense Production Act may be charged with a felony that results in a fine up to 10 000 or imprisonment for up to one year or both per violation 2 3 The second section authorizes the president to establish mechanisms such as regulations orders or agencies to allocate materials services and facilities to promote national defense The third section authorizes the president to control the civilian economy so that scarce and critical materials necessary to the national defense effort are available for defense needs 4 5 6 The original act included four other titles that are expired and repealed under current law that allowed the president to seize private property under Title II fix wages and prices and implement rationing of goods under Title IV use force to settle labor disputes under Title V and control real estate credit under Title VI Although the president can no longer fix wages and prices of goods the president can still order to prevent hoarding and selling of designated items in excess of prevailing market prices under Title I in section 102 of the Defense Production Act 7 The president s designation of products under the jurisdiction of the DPA is the authority of the Act most often used by the Department of Defense DOD since the 1970s Most of the other functions of the Act are administered by the Office of Strategic Industries and Economic Security SIES in the Bureau of Industry and Security in the Department of Commerce 8 The Defense Priorities and Allocations System institutes a rating system for contracts and purchase orders 9 The highest priority is DX which must be approved by the Secretary of Defense The next level down is DO and below that are unrated contracts Under section 721 of the Defense Production Act of 1950 an inter agency committee known as the CFIUS Committee on Foreign Investment in the United States is authorized to investigate and review transactions involving foreign investment and or real estate transactions by foreign persons and or entities in the United States Civil penalties may result in up to 250 000 per violation or the value of the transaction whichever is greater on any persons and or entities that willfully violated CFIUS regulations and any mitigation orders conditions or agreements imposed by CFIUS The CFIUS serves as an administrative body to refer and advise the president should the transaction need to be rejected or limited The law only grants the president the authorization and decision to reject or limit the transaction within a 15 day presidential review period 10 11 12 13 Use editKorean War edit The DPA passed by the U S Congress in September 1950 was first used during the Korean War to establish a large defense mobilization infrastructure and bureaucracy Under the authority of the Act President Harry S Truman eventually established the Office of Defense Mobilization instituted wage and price controls strictly regulated production in heavy industries such as steel and mining prioritized and allocated industrial materials in short supply and ordered the dispersal of wartime manufacturing plants across the nation 14 Cold War edit The Act also played a vital role in the establishment of the domestic aluminum and titanium industries in the 1950s Using the Act DOD provided capital and interest free loans and directed mining and manufacturing resources as well as skilled laborers to these two processing industries 15 16 The DPA was also used in the 1950s to ensure that government funded industries were geographically dispersed across the United States to prevent the industrial base from being destroyed by a single nuclear attack During the late 1960s and early 1970s the DPA increasingly was used to diversify the US energy mix by funding the trans Alaskan pipeline the US synthetic fuels corporation and research into liquefied natural gas 17 Technological innovation edit Beginning in the 1980s the DOD began using the contracting and spending provisions of the DPA to provide seed money to develop new technologies 18 The DOD has used the act to help develop a number of new technologies and materials including silicon carbide ceramics indium phosphide and gallium arsenide semiconductors microwave power tubes radiation hardened microelectronics superconducting wire metal composites and the mining and processing of rare earth minerals 15 19 FEMA National Security Resource Preparedness edit In June 1994 President Bill Clinton invoked the law to implement national security resource preparedness during disasters under the advisement of the FEMA director 20 The order allows FEMA work with other federal departments to order producers and distributors to prioritize resources in preparation of and in times of disasters 21st century edit California energy crisis edit In January 2001 President Bill Clinton invoked the law to force gas suppliers to continue to supply Pacific Gas and Electric Company the largest California energy provider with gas regardless of loss as a result of suppliers shutting off gas supplies due to the PG amp E s non payment during the 2000 01 California electricity crisis The order was later rescinded under the George W Bush administration but resulted in the expansion of blackouts in California for several months and PG amp E s bankruptcy 21 Cyber espionage edit In 2011 President Barack Obama invoked the law to force telecommunications companies under criminal penalties to provide detailed information to the Commerce Department s Bureau of Industry and Security on the use of foreign manufactured hardware and software in the companies networks as part of efforts to combat Chinese cyberespionage 16 Materials critical to national defense edit On June 13 2017 President Donald Trump invoked the law to classify two sets of products as critical to national defense The first referenced items affecting aerospace structures and fibers radiation hardened microelectronics radiation test and qualification facilities and satellite components and assemblies 22 23 The second referenced items affecting adenovirus vaccine production capability high strength inherently fire and ballistic resistant co polymer aramid fibers industrial capability secure hybrid composite shipping container industrial capability and three dimensional ultra high density microelectronics for information protection industrial capability 24 25 COVID 19 pandemic edit On March 18 2020 in response to the COVID 19 outbreak President Trump issued an executive order that defined ventilators and protective equipment as essential to the national defense the standard required by the DPA 26 27 Later that day he indicated that he would not make immediate use of DPA authority writing Hopefully there will be no need he indicated that he would do so in a worst case scenario 28 29 Speaker of the House Nancy Pelosi called upon Trump to immediately use the powers of the DPA to produce and distribute critically needed hospital equipment 28 29 On March 20 Trump said that he would use the DPA 30 The next day General Motors GM CEO Mary Barra spoke to Trump administration officials about how GM could support production of ventilators without the use of DPA 31 This was laid out in an academic paper 32 On March 23 Trump issued an executive order classifying health and medical resources necessary to respond to the spread of COVID 19 as subject to the authority granted by DPA to prohibit hoarding and price gouging 33 34 Trump s initial reluctance to use the act s authorities prompted criticism 35 On March 27 2020 after negotiations with GM had broken down over costs estimated at over 1 billion but primarily due to GM s inability to commit to timely delivery of the number of required ventilators Trump ordered HHS Secretary Alex Azar to use the DPA to require GM to accept and prioritize contracts for as many ventilators as Azar determines to be appropriate 36 Trump also named Peter Navarro national policy coordinator for the DPA 37 On April 2 Trump said he was invoking the DPA to require 3M General Electric and Medtronic to increase its production of N95 respirators 38 39 On April 28 Trump announced that he intended to issue an executive order under the Defense Production Act mandating that plants producing beef pork poultry and eggs stay open a move which also prompted criticism White House General Counsel Pat Cipollone consulted with various companies to design a federal mandate to keep the plants open and to provide them with additional virus testing capacity as well as protective gear according to Bloomberg News 40 Trump told the press that the order would solve any liability problems for meat processing plants protecting them from lawsuits potentially incurred due to employee COVID 19 exposures though the order provided no such immunity or protections 41 42 The order gave USDA extraordinary powers to have firms maintain production The order does not allow companies to ignore safety rules except for keeping the plants opened however and OSHA CDC guidance remains in force In September 2020 OSHA fined Smithfield and JBS for failing to take the necessary actions to prevent the spread of coronavirus 43 44 On December 8 2020 more than a month after losing the 2020 presidential election then president Trump said that he would invoke the Defense Production Act to produce vaccine doses but he did not do so before the end of his term 45 In January 2021 President Joe Biden invoked the Defense Production Act on his second day in office to increase production of supplies related to the pandemic such as protective equipment 46 On March 2 Biden invoked the DPA again to supply equipment to Merck facilities needed to safely manufacture Johnson amp Johnson vaccines 47 Wildfire crisis edit In September 2021 President Biden invoked the Defense Production Act again to supplement the supply of fire hoses which was needed because of the unusually high occurrence of dangerous wildfires 48 Virginia class attack submarines edit In December 2021 President Biden invoked the Defense Production Act to scale production and provide the needed parts and labor training to support Virginia class attack submarines 49 Critical mineral supplies edit In March 2022 President Biden invoked the Defense Production Act to increase the production of minerals necessary for the clean energy transition in the United States which includes lithium nickel cobalt graphite and manganese used by large capacity batteries for energy storage and electric vehicles The United States currently to date largely relies on foreign sources for the mining and processing of these metals 50 Baby formula shortage edit On May 18 2022 President Biden invoked the Act in response to the 2022 United States infant formula shortage requiring manufacturers to prioritize fulfilling orders of formula ingredients to key suppliers before fulfilling other orders The United States Department of Health and Human Services and the United States Department of Agriculture have also been authorized to use Department of Defense aircraft to import formula to the United States from overseas as long as the formula meet US health and safety standards 51 Green energy edit On June 6 2022 President Biden invoked the Defense Production Act to accelerate domestic production of green energy technology The administration responded to growing energy costs caused by Russia s invasion of Ukraine 52 The invocation came along with a 2 year tariff exemption that ends in June 2024 on solar panels from Cambodia Malaysia Thailand and Vietnam 53 54 The technology included in Biden s invocation included solar energy transformers and electric grid components heat pumps insulation and electrolyzers fuel cells and platinum group metals 52 On November 17 2023 the US Department of Energy announced 169 Million funded by the Inflation Reduction Act for nine projects at 15 sites to accelerate US made electric heat pump manufacturing 55 On February 14 2024 the US Department of Energy announced a further 63 million funded by the Inflation Reduction Act to accelerate the growth of domestic manufacturing of residential heat pumps heat pump water heaters and other heat pump systems and components 56 Hypersonics industrial base edit On March 11 2023 President Biden invoked the Defense Production Act to accelerate the rebuilding and expansion of the domestic industrial base on hypersonic technologies which includes airbreathing engines advanced avionics position navigation and guidance systems and constituent materials for hypersonic systems 57 Printed Circuit Boards and Advanced Packaging Production Capability edit On March 27 2023 President Biden invoked the Defense Production Act to accelerate and assure the production capacity of printed circuit boards and advanced packaging their components and the manufacturing systems that produce such systems and components as quoted from the memorandum 58 59 Artificial Intelligence edit On October 30 2023 President Biden invoked the Defense Production Act as quoted via the executive order to require that developers of the most powerful AI systems share their safety test results and other critical information with the U S government when developing any foundation model that poses a serious risk to national security national economic security or national public health 60 Pharmaceutical Supply Chain edit On November 27 2023 President Biden announced he would invoke the Defense Production Act to enable investment in domestic manufacturing of essential medicines medical countermeasures and critical inputs that have been deemed by the President as essential to the national defense as quoted An initial investment of 35 million is identified by the Department of Health and Human Services HHS for domestic production of materials utilized for sterile injectable medicines In addition the Department of Defense DOD will issue a report on reducing reliance on foreign suppliers that are high risk to pharmaceutical supply chain 61 On December 27 2023 Biden invoked the Defense Production Act as quoted for essential medicines medical countermeasures and critical inputs 62 See also editNationalization War Powers Act of 1941References edit a b Congressional Research Service The Defense Production Act of 1950 History Authorities and Considerations for Congress Archived April 24 2019 at the Wayback Machine updated November 20 2018 accessed January 17 2019 fas org The Defense Production Act of 1950 As Amended 50 U S C 4501 et seq Current through P L 113 172 enacted September 26 2014 PDF FEMA Archived PDF from the original on March 25 2020 Retrieved April 28 2020 15 CFR 700 74 Violations penalties and remedies Cornell Law School Legal Information Institute Archived from the original on May 8 2020 Retrieved April 28 2020 The Defense Production Act Choice as to Allocations Columbia Law Review 51 3 New York City Columbia Law Review Association Inc 350 361 March 1951 doi 10 2307 1119288 JSTOR 1119288 Lockwood David E June 22 2001 Defense Production Act Purpose and Scope Report Washington D C Congressional Research Service LeBlanc Paul March 18 2020 Here s how the 1950 wartime law Trump just invoked to produce medical supplies works CNN Archived from the original on March 19 2020 Retrieved March 19 2020 U S C Title 50 WAR AND NATIONAL DEFENSE Nibley Stuart April 1 2002 Defense Production Act The Government s Old but Powerful Procurement Tool Legal Times DCMA Defense Priorities and Allocations System DPAS guidebook dcma mil Archived from the original on August 17 2013 https home treasury gov policy issues international the committee on foreign investment in the united states cfius https home treasury gov policy issues international the committee on foreign investment in the united states cfius cfius excepted foreign states 50 USC 4565 Authority to review certain mergers acquisitions and takeovers https crsreports congress gov product pdf RL RL33388 Pierpaoli Paul G Jr 1999 Truman and Korea The Political Culture of the Early Cold War Columbia Missouri University of Missouri ISBN 978 0826212061 a b Mirsky Rich June July 2005 Trekking Through That Valley of Death The Defense Production Act Innovation Archived from the original on December 25 2017 Retrieved March 23 2020 a b Riley Michael November 30 2011 Obama Invokes Cold War Security Powers to Unmask Chinese Telecom Spyware Bloomberg News Archived from the original on December 2 2011 Retrieved March 6 2017 Bell Douglas A Little known Bill of Great National Significance The Uses and Evolution of the Defense Production Act 1950 2020 PDF Retrieved July 14 2020 National Research Council Defense Manufacturing in 2010 and Beyond 1999 Puko Timothy April 26 2020 Pentagon Invests in Strategic Metals Mine Seeking to Blunt Chinese Dominance The Wall Street Journal Archived from the original on April 27 2020 https www govinfo gov content pkg WCPD 1994 06 13 pdf WCPD 1994 06 13 Pg1228 pdf bare URL PDF the California Energy Crisis and Use of the Defense Production Act Office of the Press Secretary June 1 2017 Presidential Determination to adequately provide critical technology in the space industrial base in a timely manner Pursuant to Section 4533 a 5 of the Defense Production Act of 1950 whitehouse gov Washington D C Retrieved June 2 2017 via National Archives Presidential Determination to adequately provide critical technology in the space industrial base in a timely manner Pursuant to Section 4533 a 5 of the Defense Production Act of 1950 Federal Register Washington D C National Archives and Records Administration June 13 2017 Archived PDF from the original on August 24 2017 Retrieved June 17 2017 Office of the Press Secretary June 13 2017 Presidential Determination to adequately provide critical technology in a timely manner Pursuant to Section 4533 a 5 of the Defense Production Act of 1950 whitehouse gov Washington D C White House Archived from the original on December 10 2017 Retrieved June 17 2017 Presidential Determination to adequately provide critical technology a timely manner Pursuant to Section 4533 a 5 of the Defense Production Act of 1950 Federal Register Washington D C National Archives and Records Administration June 13 2017 Archived PDF from the original on August 24 2017 Retrieved June 17 2017 Vazquez Maegan March 18 2020 Trump invokes Defense Production Act to expand production of hospital masks and more CNN Archived from the original on March 20 2020 Retrieved March 20 2020 Welna David March 18 2020 Trump Invokes A Cold War Relic The Defense Production Act For Coronavirus Shortages NPR Archived from the original on March 19 2020 Retrieved March 20 2020 a b Weixel Nathaniel March 19 2020 Frustration mounts at President Trump s reluctance to use emergency production powers The Hill Archived from the original on March 20 2020 Retrieved March 20 2020 a b Phillips Amber March 19 2020 What is the Defense Production Act and why is President Trump getting pressure to use it to fight coronavirus The Washington Post Archived from the original on March 20 2020 Retrieved March 20 2020 Dzhanova Yelena March 20 2020 Trump invoked the Defense Production Act Here s how he can use its powers CNBC Archived from the original on March 27 2020 Retrieved March 27 2020 Korn Morgan March 21 2020 Automakers offer to build ventilators as US faces critical shortage ABC News Archived from the original on March 24 2020 Retrieved March 25 2020 Baker James E 2020 From Shortages to Stockpiles How the Defense Production Act Can be Used to Save Lives Make America the Global Arsenal of Public Health and Address the Security Challenges Ahead PDF Journal of National Security Law amp Policy 11 157 Chalfant Morgan March 23 2020 Trump signs executive order to prevent price gouging hoarding of medical supplies The Hill Archived from the original on March 25 2020 Retrieved March 27 2020 Trump Donald J Executive Order on Preventing Hoarding of Health and Medical Resources to Respond to the Spread of COVID 19 whitehouse gov Archived from the original on January 20 2021 Retrieved March 27 2020 via National Archives Rascoe Ayesha March 25 2020 Trump Resists Using Wartime Law To Get Distribute Coronavirus Supplies NPR Archived from the original on March 25 2020 Retrieved March 25 2020 Byrnes Jesse March 27 2020 Trump uses Defense Production Act to require GM to make ventilators The Hill Archived from the original on March 27 2020 Retrieved March 27 2020 Martin Jeffrey March 27 2020 Trump Taps Peter Navarro as Defense Production Act Policy Coordinator During Coronavirus Pandemic Newsweek Archived from the original on March 29 2020 Retrieved March 29 2020 Walsh Ben April 3 2020 President Trump Slams 3M Invokes Defense Production Act Barron s Archived from the original on April 3 2020 Retrieved April 3 2020 Sullivan Peter April 2 2020 Trump to expand use of Defense Production Act to build ventilators The Hill Archived from the original on April 4 2020 Retrieved April 3 2020 Jacobs Jennifer April 28 2020 Trump to Order U S Meat Plants to Stay Open Amid Pandemic Bloomberg News Archived from the original on April 28 2020 Retrieved April 28 2020 Hemel Daniel May 4 2020 No Trump didn t order meat processing plants to reopen The Washington Post Retrieved June 4 2020 How Coronavirus Broke America Patriot Act with Hasan Minhaj Season 6 Episode 3 May 31 2020 Netflix Smithfield appeals OSHA fine for not protecting meat plant employees from COVID 19 September 12 2020 Billion dollar meatpacking companies fined total of 30 000 after 10 worker COVID deaths 1 600 infections msn com September 2020 Archived from the original on September 14 2020 Trump Vows to Use Defense Production Act if Needed for Vaccines Bloomberg com December 8 2020 Executive Order on a Sustainable Public Health Supply Chain whitehouse gov January 21 2021 Remarks by President Biden on the Administration s COVID 19 Vaccination Efforts March 2 2021 Remarks by President Biden in Briefing with Federal and State Fire Agency Officials September 13 2021 Memorandum on the Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950 as amended December 21 2021 Memorandum on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950 as amended March 31 2022 Kimball Spencer May 18 2022 Biden invokes Defense Production Act to boost baby formula manufacturing to ease shortage CNBC Retrieved May 18 2022 a b President Biden Invokes Defense Production Act to Accelerate Domestic Manufacturing of Clean Energy Energy gov Retrieved June 7 2022 Mason Jeff June 6 2022 Exclusive Biden to waive tariffs for 24 months on solar panels hit by probe Reuters Retrieved June 7 2022 A new Dept of Commerce ruling could slow US solar growth Biden Harris Administration Announces 169 Million to Accelerate Electric Heat Pump Manufacturing as Part of Investing in America Agenda Energy gov Retrieved November 18 2023 https www energy gov articles biden harris administration announces 63 million accelerate electric heat pump Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950 as amended on Airbreathing Engines Advanced Avionics Position Navigation and Guidance Systems and Constituent Materials for Hypersonic Systems March 2023 Memorandum on Presidential Determination Pursuant to Section 303 of the Defense Production Act of 1950 as amended on Printed Circuit Boards and Advanced Packaging Production Capability March 27 2023 Defense Production Act Title III Presidential Determination for Printed Circuit Boards and FACT SHEET President Biden Issues Executive Order on Safe Secure and Trustworthy Artificial Intelligence October 30 2023 https www whitehouse gov briefing room statements releases 2023 11 27 fact sheet president biden announces new actions to strengthen americas supply chains lower costs for families and secure key sectors https www whitehouse gov briefing room presidential actions 2023 12 27 memorandum regarding the presidential determination and waiver pursuant to section 303 of the defense production act of 1950 as amended on essential medicines medical countermeasures and critical Bibliography edit Library resources about Defense Production Act of 1950 Resources in your library Resources in other libraries Bell Douglas A Little known Bill of Great National Significance The Uses and Evolution of the Defense Production Act 1950 2020 US Army Heritage and Education Center Historical Services Division Carlisle PA July 2020 https ahec armywarcollege edu documents Defense Production Act 1950 2020 pdf The Defense Production Act Choice as to Allocations Columbia Law Review 51 3 March 1951 Lockwood David E Defense Production Act Purpose and Scope Washington D C Congressional Research Service June 22 2001 Mirsky Rich Trekking Through That Valley of Death The Defense Production Act Innovation June July 2005 National Research Council Defense Manufacturing in 2010 and Beyond Meeting the Changing Needs of National Defense Washington D C National Academy Press 1999 ISBN 0 309 06376 0 Nibley Stuart B Defense Production Act The Government s Old but Powerful Procurement Tool Legal Times April 1 2002 Nibley Stuart Defense Production Act Speeds Up Wartime Purchases National Defense June 2006 Pierpaoli Jr Paul G Truman s Other War The Battle for the American Homefront The Organization of American Historians Magazine of History Spring 2000 Pierpaoli Jr Paul G Truman and Korea The Political Culture of the Early Cold War Columbia Mo University of Missouri Press 1999 ISBN 0 8262 1206 9 Pierpaoli Jr Paul G Mobilizing for the Cold War The Korean Conflict and the Birth of the National Security State Essays in Economic and Business History June 1994 External links edit 50 USC Ch 55 DEFENSE PRODUCTION United States House of Representatives text of the law in the current edition of the United States Code Defense Production Act of 1950 PDF details as amended in the GPO Statute Compilations collection Retrieved from https en wikipedia org w index php title Defense Production Act of 1950 amp oldid 1211981460, wikipedia, wiki, book, books, library,

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