President Joe Biden has been increasingly relying on a law known as the Defense Production Act (DPA) in order to promote his economic agenda and address various issues facing the nation. The DPA was established in 1950, during the Korean War, and gave the president the authority to intervene in domestic industries that are necessary for national defense.
Biden invoked the DPA once again in November, this time to invest $35 million in domestic manufacturing for medicine components in order to address shortages. This move is part of the Biden administration’s efforts to address the ongoing COVID-19 pandemic and ensure that the nation has enough medical supplies to combat the virus.
However, economists have raised concerns over the frequent use of the DPA, as it expands the power of the executive branch and involves the government in areas that are not directly related to national security.
For instance, in June 2022, Biden used the DPA to give the Department of Energy (DOE) the authority to invest in facilities, manufacturing, and processing components for green energy technology. This order aimed to incentivize the production of solar energy equipment, transformers, and other green energy components, in order to reduce carbon emissions and decrease the nation’s dependence on foreign energy sources.
Similarly, in March 2022, Biden issued a presidential determination giving the Department of Defense (DOD) the authority to intervene in private industries to support the mining and processing of strategic and critical materials used in batteries for electric vehicles (EVs). This move was aimed at decreasing the United States’ reliance on unreliable foreign mineral sources and promoting a “clean energy economy.”
The use of the DPA for these purposes has been criticized by some, who argue that it is being used to benefit specific industries and donors, rather than for its intended purpose of national defense.
Biden has also invoked the DPA to address a domestic shortage of baby formula, requiring manufacturers to use resources in the production of baby formula to increase supply. And in October, the DPA was used to require tech companies to share critical information and safety test results for their artificial intelligence systems, in order to prevent any potential risks to national security and public health.
While the DPA has been an important tool in addressing national emergencies in the past, experts warn that its frequent and expanding use could lead to government overreach and the establishment of a de facto national industrial policy.
Despite these concerns, the Biden administration seems determined to continue utilizing the DPA to promote its agenda and address various economic and social issues facing the nation. As such, it remains to be seen how far they will be willing to push the boundaries of this decades-old law in the years to come.
