Why has the Trump administration dragged its feet on invoking the Defense Production Act of 1950 to respond to the Covid-19 national emergency?

As reported by the New York Times on March 17, 2020 in an article entitled "U.S. Virus Plan Anticipates 18-Month Pandemic and Widespread Shortages," President Trump has been considering invoking the Defense Production Act (DPA) of 1950, to address the pandemic crisis, such as coordinating U.S. industries to supply desperately needed medical equipment like ventilators, as well as personal protective equipment (PPE) for hospitals in critically short supply, like face masks, gloves, and gowns.

However, Trump has inexplicably dragged his feet in invoking the DPA, despite the unprecedented gravity of the deadly Covid-19 national emergency. In fact, it appears Trump himself may have stood down his own FEMA director, who attempted to use the DPA to secure coronavirus tests (See "The Big Question Looming Over Trump's Coronavirus Disaster," in the Washington Post. Also see "Amid Desperate Need for Ventilators, Calls Grow for Federal Intervention," in the New York Times. And see "How the Defense Production Act Could Yield More Masks, Ventilators, and Tests," also in the New York Times.)

This is most ironic, given that, less than two years ago, Trump and his Energy Secretary at that time, Rick Perry, eagerly considered invoking the DPA -- and other similar federal wartime, and even natural disaster, emergency authorities, such as the Federal Power Act's (FPA) Section 202(c) -- in order to bail out the economically failing nuclear power and coal industries. (Not unlike Trump's foot-dragging re: DPA activation, Trump also failed to activate the full range of natural disaster authorities to help Puerto Ricans after the devastating hurricane that hit the American territory.)

But they didn't get away with it, thanks to fierce environmental resistance. For example, see Beyond Nuclear posts from June 1st, June 6th, and June 12th, of 2018, for more information about those DPA- and FPA-related Trump administration attempts to bail out these dirty, dangerous, and expensive energy industries, at taxpayer expense, and the environmental pushback that stopped it!

Currently, Friends of the Earth has decried, as "Disaster Capitalism at its Worst," the nuclear power industry's efforts to exploit the coronavirus crisis for a backdoor bailout. Another such example is the Nuclear Energy Institute, the industry's lobbying arm, urging the Trump administration to provide yet more bailouts to the Southern Nuclear/Georgia Power Plant Vogtle 3 & 4 new atomic reactors construction project. But the deeply troubled project -- many years behind schedule, and many billions of dollars over budget -- has already benefited from many billions of dollars worth of ratepayer-funded financing -- "advance cost recovery"/Construction Work in Progress/"nuclear tax" surcharges on electricity bills in Georgia -- as well as a whopping $13 billion (yes, with a B!) in federal taxpayer-backed nuclear loan guarantees.

Update on March 27, 2020 by admin

As reported by the Washington Post on March 27, at long last, very late in the game, Trump grudgingly seems to have finally activated the Defense Production Act, ordering GM to produce ventilators. However, the effort still appears to be reluctant and halting, unlike Trump and Perry's enthusiasm about invoking the DPA in 2018 to bail out atom splitters and coal burners.