Trump to use the Defense Production Act to boost U.S. gas and diesel production. Could it help?
Updated on: October 23, 2026 / 1:39 PM EDT / CBS News
TL;DR
- President Trump will use the Defense Production Act (DPA) to allocate $150 million to increase U.S. gasoline and diesel production.
- The DPA is a Korean War-era law allowing the president to incentivize production of critical materials.
- The move is intended to lower fuel prices, which have surged over the past year, contributing to economic pessimism.
- Experts are skeptical about the DPA's effectiveness in lowering fuel prices, stating that U.S. refining capacity is already maxed out.
- Global factors like the Russia-Ukraine conflict are contributing to higher crude oil prices.
- The U.S. produces more fuel than it consumes but prices are set on the global market.