Trump Invokes the Defense Production Act to Put $150 Million Into Domestic Fuel Refining

The Energy Department said the $150 million comes from $1 billion Congress already appropriated for energy projects critical to national security. The department said the money should raise US refining output by millions of gallons per day, and Energy Secretary Chris Wright said it will be used strategically alongside private industry.

Which refinery is involved?

Vice President JD Vance said last week that the administration would use the act to expand capacity at a Texas refinery owned by Delek US Holdings, per Reuters. Whether that project is among those funded has not been stated.

The memo sits alongside a string of smaller measures. Fox News said Trump also promoted an $8 billion Harvest Fuel Relief programme to offset farmers' diesel costs, building on a 5 October order directing the Treasury to consider deferring certain diesel excise tax payments, with the IRS suspending some penalties on dyed diesel used on highways through 31 December. UPI added that the administration had allowed purchases of about 800,000 barrels of Russian diesel through 7 April.

Why now?

Crude and diesel prices have jumped since the US and Israel attacked Iran in late February, and Ukrainian strikes on Russian refineries have deepened fuel shortages, Reuters said. A Reuters/Ipsos poll found only 36 percent of Americans approve of Trump's handling of the economy. The week's oil jump, covered in our report on reported strike plans, adds pressure. Earlier this month the administration also eased some sanctions on Russia to allow diesel purchases and eased dyed-diesel rules, UPI noted.

Money alone does not build refinery capacity quickly. Watch for the first named awards, and for whether pump prices move before voters do. Refinery expansions typically take years, so the political effect of an announcement is likely to arrive well before any extra gallons do, and the Energy Department has not said when the first funds would be released.