Delegating Authority Under the Defense Production Act for COVID-19

Apr 1, 2020
Apr 1, 2020

Summary

Gives the Secretaries of Health and Homeland Security power to make companies produce more medical supplies like masks and ventilators for the COVID-19 pandemic.

What problem does this solve?

The COVID-19 pandemic threatened to overwhelm the nation's hospitals with a shortage of medical supplies. This order uses the Defense Production Act to let the government help private companies make more supplies and manage their distribution.

What does this order do?

Expands power to boost medical supply production
Gives the Secretaries of Health and Human Services (HHS) and Homeland Security (DHS) power to use loans and purchase guarantees to help companies make more medical supplies.
Allows for private sector cooperation
Lets HHS and DHS approve voluntary agreements between private companies to work together on making and distributing medical resources without violating other laws.
Gives DHS control over supply distribution
Gives the Secretary of Homeland Security the power to control the nationwide distribution of health and medical resources in the civilian market.
Waives certain DPA rules
Removes some requirements of the Defense Production Act to allow for a faster response during the national emergency.
Creates a DPA policy coordinator
Names the Assistant to the President for Trade and Manufacturing Policy as the National Defense Production Act Policy Coordinator to oversee these efforts.

Who does this affect?

  • Healthcare providers
  • Medical supply manufacturers
  • General public

What is the real world impact?

Boosts production of critical medical supplies
Addresses shortages of items like ventilators and personal protective equipment by using federal power to help private companies increase their manufacturing capacity and coordinate their efforts.

When does this start?

This order became effective when it was signed on March 27, 2020.