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

President Trump on Thursday said his administration will invoke the Defense Production Act to spend $150 million to boost gasoline and diesel production in the U.S., the latest effort from the administration to lower fuel prices.

The Defense Production Act, or DPA, is a Korean War-era law that allows the president to use loans, purchase commitments and other mechanisms to incentivize the production of critical materials and goods.

The announcement follows a meeting President Trump had with refiners to discuss immediate steps to bring more capacity online, a White House official told CBS News.

In a press release on Thursday, the Department of Energy said the DPA funding will increase U.S. refining output by millions of gallons per day and lower fuel prices for Americans, who have been paying more than $4 a gallon on average for gas over the last three months.

The new plan to increase fuel production comes as polling shows a majority of Americans are pessimistic about the U.S. economy amid a growing affordability crunch. Crude oil prices have continued to climb, hitting their highest level this week since May.

On Friday, Brent crude…

Original source: https://www.cbsnews.com/moneywatch/