Trump turns to Cold War-era law to tackle fuel crisis

President Donald Trump has invoked the Defense Production Act, a Cold War-era national security law enacted in 1950, in an effort to ramp up domestic oil production and refining amid soaring energy prices ahead of the upcoming midterm elections.

Addressing a Republican campaign rally in Iowa on Thursday, Trump announced that his administration will allocate up to $150 million under the law to expand U.S. refining capacity and generate gasoline and diesel "at record levels." During his address in the hard-hit agricultural state, Trump expressed optimism that the ongoing conflicts involving Iran and Ukraine would conclude shortly, causing oil and fuel costs to come "tumbling down."

Through a presidential memorandum, Trump formally classified domestic petroleum production, pipelines, storage facilities, and refineries as vital to national defense, stating that private firms could not enlarge capacity at sufficient speed without government assistance. Energy Secretary Chris Wright said the funding would be distributed in partnership with private entities, while the Department of Energy projected that the program would raise daily output by millions of gallons across gasoline, diesel, jet fuel, and other refined products. Earlier, Vice President J.D. Vance revealed plans to use the law to expand a Delek-operated facility in Tyler, Texas, though such infrastructure developments typically require months or years to finish.

The policy push arrives as Trump faces declining public support ahead of the November 3 midterm vote. A Reuters/Ipsos poll released Monday placed his approval rating at a record low of 31%, down from 47% at the start of his second term, with 68% of respondents expressing disapproval over his management of the economy.

U.S. energy prices climbed rapidly following the onset of the war launched by the U.S. and Israel against Iran in late February. Figures from the U.S. Energy Information Administration show average gasoline prices increased from $2.94 per gallon prior to the conflict to $4.28 for the week ending October 19, while average diesel prices rose from $3.81 to $6.28 per gallon over the same timeframe.

To combat the price spikes, the Trump administration has deployed a series of emergency steps, including tapping strategic oil reserves for 172 million barrels, easing diesel regulations temporarily, relaxing gasoline-blending rules, and providing additional subsidies to impacted farmers. In early October, Trump disclosed an arrangement with Russian President Vladimir Putin to supply over 300,000 tons of Russian diesel to international markets, with further shipments anticipated.

Trump has also urged Ukrainian President Vladimir Zelensky to stop military attacks on Russian oil refineries, attributing fuel price surges to those strikes. Zelensky rejected the request and criticized the agreement with Moscow as "a weak decision" that was "not fair and not honest." In response, Trump described ongoing Ukrainian strikes as a "disgrace" and remarked that Ukraine ought to "get a new president" to replace Zelensky, whose official term ended over two years ago.

Why It Matters

Originally passed during the Korean War, the Defense Production Act grants the U.S. president broad emergency powers to direct domestic industrial production toward national security priorities. While historically used for military procurement and emergency manufacturing, modern administrations have increasingly turned to the statute to address economic bottlenecks, public health emergencies, and energy supply disruptions. Because major energy infrastructure projects typically require years of planning, regulatory review, and capital construction, executive interventions under the law often face practical limits in delivering immediate relief to consumers at the pump.