The Defense Production Act is an executive power of the United States President that can direct any private company to prioritise any orders from the federal government. US President Joe Biden invoked the measure on Wednesday to overcome the baby formula shortage in the country.

The President is also permitted to aid such business processes, an act that may be illegal under normal circumstances. The White House can offer loans and guarantees, make commitments about minimum purchases and also help arrange for necessary equipment for private companies.

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Such a measure is usually invoked in the United States when the federal government attempts to eliminate production bottlenecks. This also allows the national supply chain to function without fissures.

Has the Defense Production Act been invoked before?

Putting the Defense Production Act in action is common in the United States. Multiple former Presidents, including Barack Obama and Harry Truman, invoked the measure. Former President Donald Trump also used the measure in response to the COVID-19 outbreak.

Trump fast-tracked the production of N95 masks, ventilators and other medical equipment as people reportedly started hoarding such supplies.

Can only Presidents use the Defense Production Act?

Only the commander-in-chief of the United States is allowed to invoke such a measure as it can only be done through an executive order. However, once signed, all federal departments can make use of this.

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According to the Council of Foreign Relations, the Federal Emergency Management Agency often uses the measure to acquire supplies such as food and water while managing disasters, The Pentagon estimates that it uses the Defense Production Act to get nearly 300,000 military-equipment related orders.

The Defense Production Act was also used in the 2000- 2001 energy crisis in the United States. Eastern states like California received a supply of natural gas during the shortage.