President Donald Trump has invoked a Cold War-era emergency law to accelerate domestic fossil fuel development, authorizing federal support for oil, coal, liquefied natural gas, and electrical grid infrastructure as rising energy prices intensify political pressure tied to the ongoing Iran war.
Trump signed five presidential determinations under the Defense Production Act, a statute that allows the executive branch to direct private industry and deploy federal financial tools to expand production deemed necessary for national defense. The orders authorize the Department of Energy to use purchasing agreements, financial support, and other mechanisms to overcome financing gaps, supply shortages, regulatory delays, and infrastructure constraints across several sectors of the U.S. energy system.
The administration framed the move as a response to national security concerns. The presidential memoranda state that the nation’s “current inadequate and intermittent energy supply leaves us vulnerable to hostile foreign actors and poses an imminent and growing threat to the United States’ prosperity and national security.” The documents further assert that expanding petroleum production and refining capacity is necessary to prevent a shortfall that could “severely impair national defense capability.”
The determinations identify domestic coal power generation, liquefied natural gas capacity, petroleum refining, and electric grid infrastructure as priority areas. Projects eligible for federal support could include coal-fired power plants, refineries, and facilities that manufacture gas turbines, transformers, and high-voltage transmission equipment, all of which have experienced supply limitations.
White House spokeswoman Taylor Rogers described the policy as part of the administration’s broader economic and security agenda, stating that the action would help fulfill Trump’s promise “to fully unleash American energy dominance to protect our economic and national security.” Rogers also said the determinations allow the government to “strengthen our grid infrastructure and unleash reliable, affordable, secure energy.”
The orders were issued as the administration confronts growing concern over gasoline and electricity prices. National average gasoline costs have risen above $4 per gallon, contributing to broader anxiety about the cost of living. Political analysts have noted that sustained high energy costs could influence voter sentiment ahead of the November midterm elections.
The administration has also faced internal differences over projections for price relief. U.S. Energy Secretary Chris Wright indicated that Americans might not see significantly lower gasoline prices until next year, a timeline Trump publicly disputed, calling the assessment “totally wrong,” even as economists warned that geopolitical instability linked to the Iran war could produce longer-term effects on global energy markets.
At the same time, major oil and gas companies have recorded substantial financial gains linked to price increases following the outbreak of hostilities. According to the reporting provided, some of the largest companies in the sector, including Chevron and ExxonMobil, generated more than $30 million per hour in windfall gains during the first month of the conflict as energy markets reacted to supply disruptions.
Consumer advocates and environmental policy organizations argue that the use of emergency powers to support fossil fuel industries raises concerns about the allocation of taxpayer resources. Tyson Slocum, energy director at Public Citizen, criticized the decision as an expansion of executive authority that disproportionately benefits fossil fuel companies.
“President Trump is abusing emergency authorities and wasting taxpayer resources through unprecedented abuse of the Defense Production Act to promote his politically favored fossil fuel projects at the expense of energy affordability and common sense,” Slocum said. “Today’s unjustified suite of executive orders is a wish list for the oil, gas, and coal industries, who are already enjoying record profits under Trump’s Energy Unaffordability Agenda.”
Slocum also highlighted the current scale of U.S. fossil fuel production, stating, “America is already—far and away—the world’s largest oil and gas producer, and the world’s largest petroleum and gas exporter.” He added, “Promoting more fossil fuel exports at a time when Trump has failed to deliver affordable, sustainable energy for American communities is just another example of the president’s incompetent, failed energy policies.”
The determinations build upon earlier actions by the administration. On his first day back in office, Trump declared a national emergency related to domestic energy supply and infrastructure, stating that the United States faced an “extraordinary threat” tied to insufficient production, transportation, and refining capacity.
The Defense Production Act has been used by multiple administrations to address supply chain vulnerabilities connected to national security priorities. Former President Joe Biden invoked the statute to support domestic manufacturing of solar panels, heat pumps, fuel cells, and transformers as part of efforts to expand clean energy production. Trump has previously used the law to support fossil fuel initiatives, including efforts related to offshore oil production.
The latest actions also follow legislative proposals introduced by Republican lawmakers aimed at limiting legal liability for fossil fuel companies facing lawsuits related to climate damages. Richard Wiles, president of the Center for Climate Integrity, criticized the proposed protections, stating, “Big Oil companies have raked in massive profits at the pump while lying to the American people about the catastrophic harm of their products, and now they want to deny Americans their rightful day in court and stick taxpayers with the bill for the mess they made.” He added, “If fossil fuel companies have done nothing wrong, why do they need immunity?”
Trump has also argued that expanded fossil fuel production is necessary to meet increasing electricity demand from rapidly developing industries such as artificial intelligence. He stated that coal-powered generation is needed to provide stable electricity for “defense installations, industrial expansion, and the high-energy demands of emerging technologies, such as artificial intelligence.” He further described the nation’s electric grid as “aging and constrained,” warning that shortages of transformers and transmission components present risks to national defense readiness.
The administration emphasized that liquefied natural gas capacity plays a role in ensuring energy security for allied nations, warning that insufficient pipeline, processing, storage, and export infrastructure “would leave the United States and its partners dangerously exposed in times of crisis.” Trump also asserted that domestic refining capacity is central to military preparedness, stating that “without immediate federal action, United States defense capabilities will remain vulnerable to disruption.”
The presidential determinations allow federal agencies to deploy funding allocated in last year’s tax-and-spending legislation to support targeted energy projects intended to expand production capacity and strengthen infrastructure. The Department of Energy is authorized to use financial tools and purchasing authority to encourage development of facilities meeting the criteria outlined in the memoranda.
The decision to invoke wartime authority highlights the extent to which energy policy has become closely tied to national security considerations as geopolitical tensions continue to influence global markets. The administration has presented expanded fossil fuel development as necessary to ensure reliable domestic supply, while critics argue that the use of emergency authority to support already-profitable industries raises broader questions about public spending priorities and legal accountability.
“If fossil fuel companies have done nothing wrong, why do they need immunity?”
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