President Trump invoked the Defense Production Act on Thursday to direct $150 million toward expanding domestic gasoline and diesel production. The action was issued in a presidential memorandum earlier Thursday, with the spending figure disclosed at a campaign rally in Sioux City, Iowa.
The administration tied the move to higher gasoline prices during the U.S. war with Iran. The Energy Department said the funding was expected to raise U.S. refining output by millions of gallons per day under the Cold War-era law that allows presidents to expand domestic production for national defense.
Trump has taken other recent steps on fuel costs, including an $8 billion Harvest Fuel Relief Program announced at a Kansas rally earlier this week to lower diesel costs for farmers. Earlier this month, he also announced an arrangement for Russia to supply 300,000 tons of diesel to the U.S. and global market, a proposal that drew criticism from Democrats and Republicans.
The Iowa trip included campaign appearances for Republican gubernatorial candidate Zach Lahn and Senate candidate Rep. Ashley Hinson, both described as facing close contests. High fuel and fertilizer costs, alongside low approval ratings and higher goods prices tied to the administration’s tariff dispute with Canada, have increased competition in traditionally Republican states including Iowa, Nebraska and Kansas.