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<h1 class=»page-post-title»>The administration is leaning on the Defense Production Act to shape supply chains through federal support, not mandates</h1>


 
 <p style=»font-size:smaller; color:#666666; margin-bottom: 1rem;»>»The determinations are a significant signal of federal intent in this area. But like I said, they’re not self-executing,» said Scott Johnson.</p>
 
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 <div class=»Entry-infoContent»>
 <a href=»https://federalnewsnetwork.com/author/terry-gerton/»>Terry Gerton</a>
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 <span class=»Entry-date__date»>May 20, 2026</span> <span class=»Entry-date__time»>12:08 pm</span> </div>
 <div class=»read-time»>8 min read</div> </div>
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	<span class=»__sprite-icon-linkedin st_linkedin_custom» is_share=»1″ st_url=»https://federalnewsnetwork.com/defense-main/2026/05/the-administration-is-leaning-on-the-defense-production-act-to-shape-supply-chains-through-federal-support-not-mandates/»>Â </span><span class=»__sprite-icon-facebook st_facebook_custom» is_share=»1″ st_url=»https://federalnewsnetwork.com/defense-main/2026/05/the-administration-is-leaning-on-the-defense-production-act-to-shape-supply-chains-through-federal-support-not-mandates/»>Â </span><span class=»__sprite-icon-reddit st_reddit_custom» is_share=»1″ st_url=»https://federalnewsnetwork.com/defense-main/2026/05/the-administration-is-leaning-on-the-defense-production-act-to-shape-supply-chains-through-federal-support-not-mandates/»>Â </span><span class=»__sprite-icon-email show-for-medium-up st_email_custom» is_share=»1″ st_url=»https://federalnewsnetwork.com/defense-main/2026/05/the-administration-is-leaning-on-the-defense-production-act-to-shape-supply-chains-through-federal-support-not-mandates/»>Â </span><span class=»__sprite-icon-print show-for-medium-up st_print_custom» is_share=»1″ st_url=»https://federalnewsnetwork.com/defense-main/2026/05/the-administration-is-leaning-on-the-defense-production-act-to-shape-supply-chains-through-federal-support-not-mandates/»>Â </span></div>
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 <div class=»federal-drive-header-post-container»>
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 <td class=»call»><strong>Guest: </strong></td>
 <td class=»response»>Scott Johnson</td>
 </tr>
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 <td class=»call»><strong>Title: </strong></td>
 <td class=»response»>Of counsel at Foley &; Lardner</td>
 </tr>
 <tr>
 <td class=»call»><strong>Summary: </strong></td>
 <td class=»response»>The latest use of the Defense Production Act expands federal tools to support domestic energy capacity across the supply chain. It does not compel action, but it opens a path for financing and program support. Whether that translates into projects will turn on agency follow-through.</td>
 </tr>
 </tbody>
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 <div class=»federal-drive-header-post-footer»><em><p><strong>The Federal Drive with Terry Gerton</strong> provides expert insights on current events in the federal community. <a href=»https://federalnewsnetwork.com/category/terry-gerton/the-federal-drive-with-terry-gerton/»>Read more interviews</a> to keep up with daily news and analysis that affect the federal workforce. Reach out to Terry and the Federal Drive producers with feedback and story ideas at <a href=»mailto:FederalDrive@federalnewsnetwork.com»>FederalDrive@federalnewsnetwork.com</a>.</p>
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]]></style><p/><div class=»flex-video»><iframe title=»YouTube video player» src=»https://www.youtube.com/embed/mJMh4k5qL40?si=sgmbfhk77SiszLkp» width=»560″ height=»315″ frameborder=»0″ allowfullscreen=»allowfullscreen»/></div>
<p><em>Interview transcript</em></p>
<blockquote><p><strong>Terry Gerton </strong>Back in April, the president issued several new determinations under Section 303 of the Defense Production Act. Walk us through, if you would, what the Defense Production Act actually is and what these determinations are all about.</p>
<p><strong>Scott Johnson </strong>Sure, happy to. So yes, in late April, President Trump signed these five presidential determinations under the DPA, which is a Korean War-era law designed to expand domestic production of materials and technologies that are deemed essential for national defense. So all of these five determinations are directed to the secretary of energy, and they rest on findings that America's energy infrastructure is a matter of national defense, so in short, what that means now is the federal government is authorized to fund and provide other sorts of support to everything for power grid upgrades, to coal-fired power plants, to oil exploration, to even things like LNG export terminals. So whether you work in energy or build infrastructure or simply pay an electric bill as a consumer, these determinations are important because they could fundamentally reshape how we power the country.</p><style><![CDATA[
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<p><strong>Terry Gerton </strong>Is there some external shock like the operations in Iran that precipitated this rash of determinations or is it part of a longer assessment of the U.S. energy infrastructure?</p>
<p><strong>Scott Johnson </strong>Well, I think it would be easy to connect them to the current military operation overseas. However, as we know from President Trump's first term and even getting into his second term, there is a lot of concern on the part of the administration about America's energy infrastructure, including things like executive orders that the president has issued declaring a national energy emergency. So my personal view is that this ties into the larger picture and isn't specifically related to the Iran conflict.</p>
<p><strong>Terry Gerton </strong>Do these determinations require companies to do anything or do they just make certain actions permissible?</p>
<p><strong>Scott Johnson </strong>So that's a great question. They don't affect or require companies to do anything directly, but this is more a situation where their issuance may open doors to new or expanded projects or programs going forward. They're not self-executing, so we'll be relying on the Department of Energy to issue funding opportunities, requests for proposals, requests for funding, things like that going forward</p>
<p><strong>Terry Gerton </strong>So practically speaking, are they like new projects that are opening but DOE still requires funding to execute them?</p>
<p><strong>Scott Johnson </strong>They could be new projects, they could be existing projects that the government wants to provide more support to. But the key aspect of all of them is that it is really in their breadth. The scope of the determinations was really remarkably broad in that they don't target a single technology or product, but rather they cover grid infrastructure like transformers and transmission lines, large-scale energy project development in general, petroleum production and refining, coal supply chains, baseload power projects, and natural gas and LNG capacity. So when you look at them as a whole, they really touch virtually every segment of their traditional energy value chain, including the grid hardware that would be needed to deliver that power. So it's really a very, very broad scope in terms of projects and opportunities.</p>
<p><strong>Terry Gerton </strong>With that really broad landscape, do you see parts of it that are going to be like the first to be operationalized? Are there other sectors that are gonna be harder to bring to bear?</p><style><![CDATA[
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<p><strong>Scott Johnson </strong>I don't necessarily think so. I mean, a lot of that will come from what we see coming out of DOE in future months and years while this authorization is in place. So really, you know, there could be any number of funding opportunities that come out for different projects across energy sectors, and it will really just be up to companies that are operating in those sectors to keep an eye out for what's coming along, to engage early with DOE to see if they could take advantage of some of those opportunities, and then turn this sort of framework into executable programs.</p>
<p><strong>Terry Gerton </strong>Scott Johnson is of council with Foley &; Lardner. So Mr. Johnson, as you think about all of these opportunities here and the Department of Energy, who's going to have to operationalize them, what are the biggest execution hurdles for DOE? Is it funding? Is it regulation? Is it assessment of the marketplace?</p>
<p><strong>Scott Johnson </strong>Well, I think two things to think about there. One is that the toolbox that DOE has as a result of these determinations is really also quite broad and powerful. Section 303 of the DPA gives DOE the authority to make direct purchases, purchase commitments, to issue grants, loans, loan guarantees, and even make equity investments to expand production in the areas that the determinations focus on. So I think part of the challenge will be to figure out what method or methods work best for what sectors of the industry and how DOE can bring the authority issued in the determinations to bear on industry. That means for companies potential access to billions of federal dollars for projects that align with these covered categories, from pipeline build-outs to transformer manufacturing. But the thing that I think really will determine how effective these are is the money question. The determinations are only gonna have as much impact as the funding behind them. So a lot is going to rest on how much money Congress continues to appropriate for the DPA fund. And including the additional billion dollars appropriated through the One Big Beautiful Bill Act. Whether that ends up being enough to support these actions fully will sort of depend on whether, you know, Congress will need to appropriate more money, the extent and nature of any legal or political challenges to these determinations, and how all of that fits together going forward.</p>
<p><strong>Terry Gerton </strong>So you're sort of pointing out there that these directions don't operate in a vacuum, that there is a market out there and that DOE also has some actions it has to take. Where do you see potential friction here? Do these supersede existing relationships or have higher priority? How do they play out?</p>
<p><strong>Scott Johnson </strong>They don't. So existing contracts and regulations don't just disappear as a result of these, the additional DPA support doesn't automatically override other legal or regulatory requirements or existing contracts. So it'll be important for companies that might be affected by these funding opportunities or in a position to take advantage of them to review their existing commercial agreements, including things like output commitments or supply allocations, change in law clauses, for example, because the DOE purchase commitments or financial instruments that could arise from these determinations definitely could intersect with those contracts in some unexpected ways. So, this is more of just an additional layer on top of the existing federal contracting structure for energy products and services. But doesn't displace existing law, regulations or contracts.</p>
<p><strong>Terry Gerton </strong>If DOE does start to issue projects through the Section 303, do they get expedited environmental review or permitting requirements? Is there anything else that helps grease the skids towards completion of the projects?</p>
<p><strong>Scott Johnson </strong>Also, very good question. To my knowledge, there isn't any particular impact of these determinations on things like permitting. There is a lot of discussion in the energy industry these days about permitting reform actions that Congress might be able to take to facilitate the faster development of energy projects. So the way that I view these is certainly as fuel on the fire for moving those things forward more quickly. But there would still need to be separate action if there is going to be any change to the larger permitting regime or how these projects are ultimately developed including the extent to which they're regulated at the state level, which is an entirely separate question</p>
<p><strong>Terry Gerton </strong>So what is the real point of issuing these determinations then? Is it just a declaration, a roadmap to where the administration is prioritizing development? Because it sounds like ultimately it all depends on whether money actually flows in one direction or another.</p>
<p><strong>Scott Johnson </strong>That's exactly right. That's the multi-billion dollar question here. The bottom line in my view is that the determinations are a significant signal of federal intent in this area. But like I said, they're not self-executing. So the real story is gonna be written over the next months and years by DOE as it translate these presidential directives into actual programs and dollars that companies can take advantage of. Those that are paying attention now, mapping their projects to the categories covered by the determinations, engaging with DOE and going through sort of like a stress test of their existing contracts are probably gonna be the company's best positioned to benefit from these determinations and the funding and other opportunities that could flow from them. They definitely open doors, but sort of going through those doors and benefiting is gonna take preparation and vigilance on behalf of the companies that are in a position to do that.</p><style><![CDATA[
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<p><strong>Terry Gerton </strong>So for those companies who are in this space, the best guidance is to watch for the latest funding opportunities?</p>
<p><strong>Scott Johnson </strong>Absolutely. So a lot of this should be coming out in the Federal Register. So keep an eye on the DOE section of the FR to see what funding opportunities might arise, you know, to the extent that companies can be prepared to jump on those when they become available, all the better, and we'll see what happens.</p></blockquote>
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