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             Congressional
           ~.Research Service






COVID-19: Defense Production Act (DPA)

Developments and Issues for Congress



May   13, 2020


The Defense Production Act of 1950 (DPA) is being employed by the Trump Administration in response
to the Coronavirus Disease 2019 (COVID-19) pandemic to facilitate the production and availability of
essential goods, supplies, and services. This Insight considers recent DPA actions with regard to the
COVID-19  pandemic and discusses associated policy considerations for Congress. It is a companion to
CRS  Insights IN 11337, IN 11280, and IN11231. See CRS Report R43767 for a more in-depth discussion
of DPA history and authorities.


New DPA Actions in Response to COVID-19

Since April 15, seven DPA actions have been made public:
      According to Federal Procurement Data System (FPDS) COVID-19 records, FEMA
       issued four DPA priority-rated orders to the 3M company for N95 respirators on April 16,
       April 21, and April 28. The orders were made pursuant to an April 2 White House
       memorandum. The Federal Emergency Management Agency (FEMA) announced the
       DPA priority-rated orders for N95 respirators from producer 3M on April 14.
      On April 20, the Department of Defense (DOD) announced it had set aside $750 million
       of $1 billion in new DPA Title III appropriations for health resources, with $250 million
       reserved for defense industrial base supply chains investments.
      On April 21, DOD announced a $133 million Title III investment in N95 respirator
       production, per a previous April 11 announcement.
      The Department of Justice (DOJ) charged a New York resident on April 24, and two
       individuals on April 28, with violating DPA anti-hoarding/price gouging provisions.
      On April 28, President Trump issued Executive Order (E.O.) 13917 directing the
       Department of Agriculture (USDA) to exercise DPA authorities to address meat and
       poultry plant closures, and any other food supply chain issues, due to the pandemic.


                                                            Congressional Research Service
                                                              https://crsreports.congress.gov
                                                                                IN11387

CRS INSIGHT
Prepared for Members and
Committees of Congress

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