National Defense Resources Preparedness

Mar 22, 2012
Mar 22, 2012

Summary

Gives federal agencies power to manage resources like food, energy, and transportation to ensure the country is ready for emergencies.

What problem does this solve?

The U.S. needs a plan to make sure it has enough supplies and industrial power to handle a national emergency. This order gives government agencies control over key resources to direct them where they are needed most for national defense.

What does this order do?

Delegates presidential authority to federal agencies
Gives the heads of various federal agencies the President's powers under the Defense Production Act to manage resources for national defense.
Allows government control over key resources
Authorizes secretaries of Agriculture, Energy, Health, Transportation, Defense, and Commerce to require priority on contracts and allocate resources like food, energy, and water.
Strengthens the U.S. industrial base
Allows agencies to use loan guarantees, direct loans, and purchase commitments to support domestic companies that produce items essential for national defense.
Creates a reserve of emergency personnel
Establishes the National Defense Executive Reserve (NDER), a group of private-sector experts who can be hired for government jobs during a national emergency.
Manages the national workforce for defense needs
Requires the Secretary of Labor to collect data on the nation's workforce and create plans to meet labor needs for national defense purposes.

Who does this affect?

  • Federal agencies
  • Private industries (especially in defense, energy, food, and transportation sectors)
  • U.S. Military

What is the real world impact?

Ensures national readiness for emergencies
Prepares the United States for national defense emergencies by making sure the government can control and direct essential resources and industrial production when needed.
Grants broad government control over the economy
Gives federal agencies significant power to control private industries by forcing them to accept government contracts and allocating materials, which could disrupt the free market.

When does this start?

This order became effective when it was signed on March 16, 2012.