Trump Uses Defense Production Act to Fast-Track U.S. Energy Projects
President Trump has activated the Defense Production Act to waive key regulations and expedite energy infrastructure projects.
Why it matters: Legal and compliance teams must rapidly adjust to sweeping changes in federal oversight, permitting, and risk allocation. Direct government intervention in project approvals and materials sourcing increases the urgency for legal review and proactive counsel.
- The Defense Production Act (DPA) grants the White House emergency powers over energy supply chains and project approvals.
- Trump’s order waives some permitting and procurement laws to accelerate critical projects in oil, gas, coal, and grid equipment.
- Natural gas turbines and power transformers—currently in short supply—are prioritized for federal assistance.
- Legal experts warn companies must reassess regulatory strategies, contract protections, and risk disclosures.
On April 20, 2026, President Trump issued a Presidential Determination invoking the Defense Production Act (DPA) for U.S. energy infrastructure. The DPA, a 1950 law originally designed for national security emergencies, allows the government to compel industry action and bypass typical legal requirements when necessary for defense or security.
- The Trump administration’s move covers petroleum refining, natural gas pipelines, coal-fired plants, and urgently needed grid components like transformers.
- Key statutory requirements, including some environmental reviews and federal procurement rules, are suspended for targeted projects—intended to speed up construction and delivery amid global energy uncertainty.
- White House spokeswoman Taylor Rogers said this action is designed to “unleash American energy dominance,” focusing on supply chain vulnerabilities and grid reliability in the current security climate.
Law firm Morgan, Freedman & Hall’s regulatory partner Alice Berman cautions that: “Suspending established permitting processes introduces uncertainty—not only for project timelines but also for contractual allocations of risk and compliance with underlying local and state laws.”
General counsel and compliance officers must closely track changing federal guidance and prepare for expedited timelines, revised procurement rules, and the potential for legal conflicts between federal authority and state or local requirements. Early dialogue with regulators and experienced counsel is advised to protect company interests in this rapidly shifting environment.
By the numbers:
- 2+ key environmental and procurement statutes affected — Statutory waivers to speed select projects.
- up to 18 months — Potential permitting time saved for critical energy projects.
Yes, but: Some industry and environmental groups warn that bypassing standard review processes could heighten legal challenges or regulatory uncertainty at state and local levels.
What's next: Federal agencies are expected to publish specific eligibility guidelines for energy projects in the coming weeks.