Defense Production Act: Purpose and Scope

Abstract

The Defense Production Act (DPA) was created at the outset of the Korean War to ensure the availability of the nation's industrial resources to meet the national security needs of the United States by granting the President powers to ensure the supply and timely delivery of products, materials, and services to military and civilian agencies. The DPA codifies a robust legal authority given the President to force industry to give priority to national security production and is the statutory underpinning of governmental review of foreign investment in U.S. companies. DPA authorities are not permanent. Rather, they are time-limited, undergoing periodic amendment and reauthorization. Of the seven titles contained within the original Act, four have been repealed. In 2008, Congress reauthorized the remaining titles of the DPA through September 30, 2009.