Trump’s Executive Order Marks a Key Step Toward Reining in the Defense Production Act

Mar 26, 2025 by Kevin Schmidt, Thomas Kimbrell

President Trump’s recent Executive Order rescinding the Biden Administration’s abuse of the Defense Production Act (DPA) is a welcome course correction—and a crucial reminder of why the DPA itself is in desperate need of reform.

For too long, presidents of both parties have stretched the DPA far beyond its original intent: a Cold War-era measure meant to ensure access to materials necessary for national defense. Under President Biden, the DPA was invoked repeatedly—not to address imminent national security threats but to advance ideological policy goals such as green energy production.

That’s not emergency response; that’s executive overreach.

Trump’s order is an important first step toward restoring constitutional balance—but it’s not enough. If Congress doesn’t reform the Defense Production Act, future administrations will continue to find new ways to misuse it.

The Problem With the DPA

The Defense Production Act, enacted in 1950, was designed to give the President limited authority to prioritize and allocate resources for national defense. Over time, Congress expanded the law’s scope to secure domestic energy production and respond to natural disasters and terrorist attacks. Modern presidents have gone further, interpreting the DPA’s scope more and more broadly.

Today, the DPA is being used to control private industry under the vague justification of “national preparedness.” Instead of securing critical defense materials, the law has become a tool for implementing national industrial policy and political agendas. This unchecked authority allows the executive branch to override markets, pick winners and losers, and disrupt supply chains without meaningful oversight.

What Reform Should Look Like

The Emergency Powers Reform Project is committed to advancing reforms that restore constitutional checks and balances. Americans for Prosperity Foundation lists its principles for DPA reform:

  • Tighter definitions of “national defense” to prevent peacetime mission creep.
  • Time limits and automatic sunsets on DPA declarations unless renewed by Congress.
  • Regular congressional and Inspector General oversight coupled with mandatory reporting requirements so the public knows how and why the DPA is being used.

The Path Ahead

President Trump’s Executive Order is a strong start, but it’s up to Congress to bring back balance by reforming the Defense Production Act for good. Let this moment be a wake-up call: emergency powers are not a blank check.

It’s time to rein in the DPA.

Read more on DPA reform.

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