President Donald Trump on Thursday determined that petroleum production, refining and related activities are essential to national defence, invoking part of the Cold War-era Defense Production Act in a presidential memorandum that could open U.S. funding for fossil-fuel projects, Reuters reported on October 22.

Source: Reuters (via Kat Country 98.9)

In a speech in Iowa, Trump said the administration will release $150 million — yaani, about 15 crore dollars — to increase refining capacity and produce more diesel and gasoline, according to reporting of the announcement and the memorandum. The memo was directed to the Secretary of War and waives certain requirements under Section 303 of the Act to accelerate the work.

Source: RWT News (presidential memorandum and Iowa announcement)

$150MAnnounced to expand U.S. refining capacity
13.6MU.S. crude output, barrels per day in 2025 — the world's highest
36%Americans approving Trump's handling of the economy in a Reuters/Ipsos poll closing Monday
$1BDPA funding for critical energy projects in legislation Trump signed last year

What the memorandum allows

Invoking Section 303 allows the government to provide financial incentives for oil-related activities, pipelines and the storage of liquid fuels, including purchases, purchase commitments and other financial instruments, the reports say. The memorandum did not name specific projects that could be funded.

The memo said that without the actions, the United States cannot provide enough of those energy services in a timely manner due to constrained financing, long lead times, permitting and infrastructure bottlenecks, and supply-chain limitations, Reuters reported. Seeking Alpha, citing the Department of Energy, said the move will help boost domestic petroleum output, storage and logistics at refineries across the U.S.

Source: Seeking Alpha

Prices for crude oil and diesel have surged since the U.S. and Israel attacked Iran at the end of February, Reuters reported, and the conflict has limited energy shipments globally, with Ukrainian attacks on Russian refineries adding to shortages. The surge poses a risk for Trump ahead of the November 3 elections, as Republicans try to keep control of both chambers of Congress.

Last week, Vice President JD Vance said the administration would use the Defense Production Act to expand capacity at a Texas refinery owned by Delek US Holdings, Reuters reported. Trump signed legislation last year that included $1 billion in Defense Production Act funding for energy-related projects deemed critical to national security.

Why it matters for truckers and drivers

Diesel is the fuel of U.S. freight. Any move that adds refining capacity is aimed at the pump prices truckers — including many Punjabi owner-operators on I-5, I-80 and I-15 corridors — pay every day, though the memorandum itself does not guarantee when, or whether, prices will fall.

What is solid

  • Trump signed a presidential memorandum on Thursday, October 22, determining that petroleum production, refining and related activities are essential to national defence (Reuters).
  • The memorandum invokes Section 303 of the Defense Production Act, allowing financial incentives for oil activities, pipelines and liquid-fuel storage (Reuters).
  • Trump announced $150 million to increase refining capacity and produce more diesel and gasoline in his Iowa speech (RWT News; Seeking Alpha).
  • The United States averaged about 13.6 million barrels of daily crude production in 2025, the highest in the world (Reuters).

What is only claimed

  • Whether DPA funding will actually bring diesel and gasoline prices down — the memorandum names no specific projects, and any price effect is not yet known.
  • How voters judge the move — the 36 per cent economy-approval figure is a Reuters/Ipsos opinion poll, a measure of public perception, not an economic finding.