Section 30001 of the IRA appropriates $500 million to carry out the Defense Production Act of 1950 (“DPA”). The funds shall remain available until September 30, 2024.
The DPA provides the executive branch with the authority to expedite and expand the supply of materials and services from the U.S. industrial base needed to promote national defense.
The DPA was invoked by the Biden administration in 2022 to provide the DOE with the authority to accelerate the domestic manufacturing of the following clean energy technologies: 1) solar; (2) transformers and electric grid components; (3) heat pumps; (4) insulation; and (5) electrolyzers, fuel cells, and platinum group metals. This supports the administration’s goal to lower energy costs, strengthen national security, and achieve long-term energy independence from fossil fuel sources.
Current Status:
Trump Administration Actions:
- DOE Secretary Orders Review of 179 Financial Assistance Awards [05/15/2025]
- Litigation Compliance Report Indicates DOE Released Previously Frozen Awards [04/23/2025]
- DOE Creating List of Clean Energy Grants to Cancel [03/21/2025]
- OMB Orders Temporary Pause on Financial Assistance Programs, Later Rescinded [01/27/2025]
- DOE Memo Suspends Funding for Projects Involving Community Benefit Plans [01/27/2025]
- OMB Clarifies Scope of the Order to Halt IRA Spending [01/21/2025]
- Trump Issues Executive Order to Halt All IRA Funding Disbursements [01/20/2025]
Implementation Status at End of Biden Administration:
IRA appropriates $500 million under the Defense Production Act for use by the executive branch by September 30, 2024. DOE allocated $254 million by August of 2024. Department of Defense allocated at least $155 million for critical mineral supply chain development by September 26, 2024. Because the statutory deadline has passed, additional funds are not available.
In November 2023, DOE granted $169 million in first round funding to 9 projects. In August 2024, DOE granted second round funding of $85 million to 4 projects. In addition, the Department of Defense announced several grant awards for strengthening critical mineral production for battery storage (see, e.g., September 2023 announcement of $90 million for expanding domestic lithium mining to bolster U.S. battery supply chains).
Biden Administration Actions:
- DOE Announces Commitment of 94% of IRA Grant Funds to States and Projects [01/17/2025]
- DOE Announces $85 Million to Accelerate Domestic Heat Pump Manufacturing [08/07/2024]
- DOE Announces $169 Million to Accelerate Heat Pump Manufacturing [11/17/2023]
- DOE Seeks Comment on the Defense Production Act’s Electric Heat Pump Program [11/08/2022]
- DOE Requests Comments on Defense Production Act Programs [10/11/2022]