ARTICLE
31 March 2020

Trump Invokes Defense Production Act To Surge Industrial Capacity

CL
Cooley LLP

Contributor

Cooley LLP logo
Clients partner with Cooley on transformative deals, complex IP and regulatory matters, and high-stakes litigation, where innovation meets the law. Cooley has nearly 1,400 lawyers across 18 offices in the United States, Asia and Europe, and a total workforce of more than 3,000.
On Wednesday, March 18, 2020, President Trump issued an executive order invoking Section 101 of the Defense Production Act of 1950 in an effort to "surge capacity and capability to respond to...
United States Coronavirus (COVID-19)
To print this article, all you need is to be registered or login on Mondaq.com.

On Wednesday, March 18, 2020, President Trump issued an executive order invoking Section 101 of the Defense Production Act of 1950 in an effort to "surge capacity and capability to respond to the spread of COVID-19."

The DPA – a Korean War-era law – has been invoked dozens of times since its enactment in 1950 and provides the government with special authority during emergencies to control, prioritize and direct production and the provision of services by commercial enterprises. Specifically, the DPA authorizes the president to require companies to enter into government contracts and fulfill purchase orders and to prioritize the production of materials and performance of services necessary for national defense. The DPA also allows the president to use loans and other incentives to increase production of essential products.

Historically used for military production purposes, this authority may be used presently to procure "personal protective equipment and ventilators," and "other health and medical resources needed to respond to the spread of COVID-19 within the United States."

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More