Government
Trump Taps Defense Production Act to Address Grid Equipment, Energy Project Bottlenecks
Move targets shortage of transformers, substations and other supply chain challenges, but DOE has yet to name projects or funding
Large power transformers at an electrical substation, where federal officials cite equipment shortages and long lead times as constraints on grid expansion.
President Donald Trump has invoked the Defense Production Act to speed deployment of what the White House considers some of the most constrained segments of U.S. energy infrastructure, such as grid equipment, pipelines and liquefied natural gas systems, considering them critical to national defense.
Published April 23 in the Federal Register, the determinations authorize the U.S. Dept. of Energy to deploy tools under Section 303 of the statute, first enacted in 1950, to allow the president to change industry-related policies in light of national defense concerns. The latest determinations seek to expand domestic capacity across U.S. energy markets through financial support and other changes.
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The determinations follow an executive order signed in January 2025 claiming a "national energy emergency." In the determination notices, Trump said that "financing risks, regulatory delays and market barriers" limit domestic capabilities for development, manufacturing and deployment of large-scale energy infrastructure projects.
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Presidential Determination | DPA
One determination identifies transformers, high-voltage transmission components, substations and related manufacturing supply chains as “dangerously limited,” citing long lead times, import dependence and insufficient domestic production capacity.
Separate determinations expand federal support for natural gas and LNG systems—including gathering and transmission pipelines, processing plants, underground storage, liquefaction facilities and marine export terminals—as well as domestic petroleum production, refining and logistics infrastructure such as pipelines and storage terminals.
A broader directive covering “large-scale energy and energy-related infrastructure” goes further, explicitly including engineering, site acquisition and preparation, permitting, and early-stage risk-mitigation financing—linking the action to preconstruction phases that often determine whether projects advance.
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The White House actions cite persistent barriers including financing constraints, regulatory delays, long equipment lead times and supply chain bottlenecks, concluding that market conditions alone are unlikely to deliver sufficient capacity in a timely manner without federal intervention, warning that shortfalls could “severely impair national defense capability.”
The move comes amid heightened volatility in global energy markets tied to the ongoing Iran conflict, which has driven sharp swings in oil and fuel prices and disrupted supply routes, adding pressure on domestic energy costs and infrastructure systems. At the same time, U.S. electricity demand continues to rise, with utilities citing rapid growth from energy-intensive data centers and industrial loads.
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The orders establish a legal and policy framework for DOE involvement but stop short of identifying projects, funding allocations or award timelines. DOE has not yet issued funding opportunity announcements or implementation guidance tied to the determinations, leaving the near-term impact on project pipelines and procurement uncertain.
That gap marks a departure from earlier uses of the Defense Production Act for energy supply chains.
A prior DOE initiative under President Joe Biden to expand domestic heat pump manufacturing, for example, was paired with a defined $250-million funding opportunity and application deadlines. At the time, then–Energy Secretary Jennifer Granholm said the effort was intended to “strengthen the nation’s energy independence” by expanding U.S. manufacturing capacity.
Until DOE translates the determinations into funding rounds or project-level actions, the move only signals a potential expansion of federal involvement in energy infrastructure delivery, rather than a direct investment in these affected markets.
Bryan Gottlieb is the online editor at Engineering News-Record (ENR).
Gottlieb is a five-time Society of Professional Journalists Excellence in Journalism award winner with more than a decade of experience covering business, construction and community issues, including finance, law and real estate. He has reported for Adweek and the San Diego Daily Transcript and led a community newsroom in Santa Monica, Calif. He served as editor-in-chief of the Detroit Metro Times and as managing editor at Roofing Contractor, where he helped shape national industry coverage. At Engineering News-Record, Gottlieb covers breaking news, large-scale infrastructure and megaprojects, regulatory developments and business trends across the U.S. and global construction sectors.
email: gottliebb@enr.com | office: (248) 786-1591
