Delegating Authority Under the Defense Production Act to the DFC
May 19, 2020
Signed by: Donald Trump
Signed on: May 14, 2020
Published on: May 19, 2020
May 19, 2020
Signed by: Donald Trump
Signed on: May 14, 2020
Published on: May 19, 2020
Summary
Gives the U.S. International Development Finance Corporation power to make loans to boost domestic production of supplies needed to fight COVID-19.
What problem does this solve?
The COVID-19 pandemic created a national emergency, straining the country's ability to produce needed medical supplies. This order allows a government agency to give loans to companies to make more of these supplies within the United States.
What does this order do?
Delegates Defense Production Act authority to the DFC
Gives the Chief Executive Officer of the United States International Development Finance Corporation (DFC) the President's power to make loans and purchase commitments under the Defense Production Act.
Focuses on COVID-19 response and supply chains
Specifies that the DFC's new authority must be used to increase domestic production of resources needed for the COVID-19 response or to strengthen U.S. supply chains.
Requires consultation with other agencies
Requires the CEO of the DFC to work with the Secretaries of Defense, Health and Human Services, and Homeland Security when using these powers.
Sets an expiration date for the new authority
States that the powers given to the DFC in this order will end after a two-year period as defined by the Coronavirus Aid, Relief, and Economic Security Act.
Who does this affect?
- U.S. manufacturing companies
- United States International Development Finance Corporation (DFC)
- Federal agencies
What is the real world impact?
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Strengthens domestic supply chains
Uses the Defense Production Act to provide financial support, like loans, to companies within the U.S. This helps the country make more of its own essential supplies needed to respond to the COVID-19 pandemic.
When does this start?
This order takes effect on May 14, 2020, and includes a specific end date for the authority it grants.
Expiration of authority
The authority given in this order ends two years after the waiver in the Coronavirus Aid, Relief, and Economic Security Act takes effect.