SUBCHAPTER II—EXPANSION OF PRODUCTIVE CAPACITY AND SUPPLY
Editorial Notes
Codification
Title III of the Defense Production Act of 1950, comprising this subchapter, was originally enacted as part of act Sept. 8, 1950, ch. 932,
§4531. Presidential authorization for the national defense
(a) Expediting production and deliveries or services
(1) Authorized activities
To reduce current or projected shortfalls of industrial resources, critical technology items, or essential materials needed for national defense purposes, subject to such regulations as the President may prescribe, the President may authorize a guaranteeing agency to provide guarantees of loans by private institutions for the purpose of financing any contractor, subcontractor, provider of critical infrastructure, or other person in support of production capabilities or supplies that are deemed by the guaranteeing agency to be necessary to create, maintain, expedite, expand, protect, or restore production and deliveries or services essential to the national defense.
(2) Presidential determinations required
Except during a period of national emergency declared by Congress or the President, a loan guarantee may be entered into under this section only if the President determines that—
(A) the loan guarantee is for an activity that supports the production or supply of an industrial resource, critical technology item, or material that is essential for national defense purposes;
(B) without a loan guarantee, credit is not available to the loan applicant under reasonable terms or conditions sufficient to finance the activity;
(C) the loan guarantee is the most cost effective, expedient, and practical alternative for meeting the needs of the Federal Government;
(D) the prospective earning power of the loan applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan to be guaranteed;
(E) the loan to be guaranteed bears interest at a rate determined by the Secretary of the Treasury to be reasonable, taking into account the then-current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan;
(F) the loan agreement for the loan to be guaranteed provides that no provision of the loan agreement may be amended or waived without the consent of the fiscal agent of the United States for the guarantee; and
(G) the loan applicant has provided or will provide—
(i) an assurance of repayment, as determined by the President; and
(ii) security—
(I) in the form of a performance bond, insurance, collateral, or other means acceptable to the fiscal agent of the United States; and
(II) in an amount equal to not less than 20 percent of the amount of the loan.
(3) Limitations on loans
Loans under this section may be—
(A) made or guaranteed under the authority of this section only to the extent that an appropriations Act—
(i) provides, in advance, budget authority for the cost of such guarantees, as defined in
(ii) establishes a limitation on the total loan principal that may be guaranteed; and
(B) made without regard to the limitations of existing law, other than
(b) Fiscal agents of the United States
(1) In general
Any Federal agency or any Federal reserve bank, when designated by the President, is hereby authorized to act, on behalf of any guaranteeing agency, as fiscal agent of the United States in the making of such contracts of guarantee and in otherwise carrying out the purposes of this section.
(2) Funds
All such funds as may be necessary to enable any fiscal agent described in paragraph (1) to carry out any guarantee made by it on behalf of any guaranteeing agency shall be supplied and disbursed by or under authority from such guaranteeing agency.
(3) Limit on liability
No fiscal agent described in paragraph (1) shall have any responsibility or accountability, except as agent in taking any action pursuant to or under authority of this section.
(4) Reimbursements
Each fiscal agent described in paragraph (1) shall be reimbursed by each guaranteeing agency for all expenses and losses incurred by such fiscal agent in acting as agent on behalf of such guaranteeing agency, including, notwithstanding any other provision of law, attorneys' fees and expenses of litigation.
(c) Oversight
(1) In general
All actions and operations of fiscal agents under authority of or pursuant to this section shall be subject to the supervision of the President, and to such regulations as the President may prescribe.
(2) Other authority
The President is authorized to prescribe—
(A) either specifically or by maximum limits or otherwise, rates of interest, guarantee and commitment fees, and other charges which may be made in connection with loans, discounts, advances, or commitments guaranteed by the guaranteeing agencies through fiscal agents under this section; and
(B) regulations governing the forms and procedures (which shall be uniform to the extent practicable) to be utilized in connection with such guarantees.
(d) Aggregate guarantee amounts
(1) Industrial resource and critical technology shortfalls
(A) In general
If the making of any guarantee or obligation of the Federal Government under this subchapter relating to a domestic industrial base shortfall would cause the aggregate outstanding amount of all guarantees for such shortfall to exceed $50,000,000, any such guarantee may be made only—
(i) if the President has notified the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives in writing of the proposed guarantee; and
(ii) after the 30-day period following the date on which notice under clause (i) is provided.
(B) Waivers authorized
The requirements of subparagraph (A) may be waived—
(i) during a period of national emergency declared by Congress or the President; or
(ii) upon a determination by the President, on a nondelegable basis, that a specific guarantee is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability.
(2) Other limitations
The authority conferred by this section shall not be used primarily to prevent the financial insolvency or bankruptcy of any person, unless—
(A) the President certifies that the insolvency or bankruptcy would have a direct and substantially adverse effect upon national defense production; and
(B) a copy of the certification under subparagraph (A), together with a detailed justification thereof, is transmitted to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives not later than 10 days prior to the exercise of that authority for such use.
(Sept. 8, 1950, ch. 932, title III, §301, as added
Termination of Section
For termination of section, see
Editorial Notes
Codification
Section was formerly classified to section 2091 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.
Prior Provisions
A prior section 301 of act Sept. 8, 1950, ch. 932, title III,
Statutory Notes and Related Subsidiaries
Legislative Waiver of Loan Limitations
Limitation on Cancellation of Designation of Secretary of the Air Force as Department of Defense Executive Agent
"(a)
"(b)
"(c)
"(a)
"(1) completed the review and assessment required by subsection (b)(1); and
"(2) carried out the briefing required by subsection (c).
"(b)
"(1)
"(2)
"(A) Assessment of the current management structure for the program, including analysis of the mechanisms for accountability, as well as cost and management controls currently in place.
"(B) Analysis of alternatives for proposals to modify that management structure to increase accountability, cost and management controls. Such analysis of alternatives should consider the relative merits of centralization and decentralization, roles of other military departments in program management and contracting, as well as the different roles the Office of the Secretary of Defense might play in management, oversight and execution.
"(C) Recommendations for improving the assessment and selection of projects in order to—
"(i) ensure that projects selected are appropriate for use of funds appropriated to carry out title III of the Defense Production Act of 1950;
"(ii) ensure that sufficient vetting and management controls are in place to ensure a reasonable degree of confidence that project ideas or the companies being supported will be viable; and
"(iii) increase overall successful execution for selected projects.
"(D) Such other matters as the Secretary considers appropriate.
"(c)
"(d)
"(e)
"(f)
"(1) the [sic] Committee on Armed Services and the Committee on Banking, Housing, and Urban Affairs of the Senate; and
"(2) the [sic] Committee on Armed Services and the Committee on Financial Services of the House of Representatives."
Executive Documents
Delegation of Functions
Authority of President under this section with respect to responding to the spread of COVID–19 within the United States delegated to Secretary of Health and Human Services and the Secretary of Homeland Security, see section 2 of Ex. Ord. No. 13911, Mar. 27, 2020, 85 F.R. 18403, set out as a note under
Functions of President under this chapter relating to production, conservation, use, control, distribution, and allocation of energy, delegated to Secretary of Energy, see section 4 of Ex. Ord. No. 11790, eff. June 25, 1974, 39 F.R. 23185, set out as a note under
For delegation of authority of President under subsec. (a)(2) of this section, see section 305(a) of Ex. Ord. No. 13603, Mar. 16, 2012, 77 F.R. 16654, set out as a note under
Executive Waiver of Loan Limitations
Requirements of subsecs. (a)(2) and (d)(1)(A) of this section waived during the national emergency declared by Proc. No. 9994, Mar. 13, 2020, 85 F.R. 15337, set out as a note under
§4532. Loans to private business enterprises
(a) Loan authority
To reduce current or projected shortfalls of industrial resources, critical technology items, or materials essential for the national defense, the President may make provision for loans to private business enterprises (including nonprofit research corporations and providers of critical infrastructure) for the creation, maintenance, expansion, protection, or restoration of capacity, the development of technological processes, or the production of essential materials, including the exploration, development, and mining of strategic and critical metals and minerals.
(b) Conditions of loans
Loans may be made under this section on such terms and conditions as the President deems necessary, except that—
(1) financial assistance may be extended only to the extent that it is not otherwise available from private sources on reasonable terms; and
(2) during periods of national emergency declared by the Congress or the President, no such loan may be made unless the President determines that—
(A) the loan is for an activity that supports the production or supply of an industrial resource, critical technology item, or material that is essential to the national defense;
(B) without the loan, United States industry cannot reasonably be expected to provide the needed capacity, technological processes, or materials in a timely manner;
(C) the loan is the most cost-effective, expedient, and practical alternative method for meeting the need;
(D) the prospective earning power of the loan applicant and the character and value of the security pledged provide a reasonable assurance of repayment of the loan in accordance with the terms of the loan, as determined by the President; and
(E) the loan bears interest at a rate determined by the Secretary of the Treasury to be reasonable, taking into account the then-current average yield on outstanding obligations of the United States with remaining periods of maturity comparable to the maturity of the loan.
(c) Limitations on loans
Loans under this section may be—
(1) made or guaranteed under the authority of this section only to the extent that an appropriations Act—
(A) provides, in advance, budget authority for the cost of such guarantees, as defined in
(B) establishes a limitation on the total loan principal that may be guaranteed; and
(2) made without regard to the limitations of existing law, other than
(d) Aggregate loan amounts
(1) In general
If the making of any loan under this section to correct a shortfall would cause the aggregate outstanding amount of all obligations of the Federal Government under this subchapter relating to such shortfall to exceed $50,000,000, such loan may be made only—
(A) if the President has notified the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives, in writing, of the proposed loan; and
(B) after the 30-day period following the date on which notice under subparagraph (A) is provided.
(2) Waivers authorized
The requirements of paragraph (1) may be waived—
(A) during a period of national emergency declared by the Congress or the President; and
(B) upon a determination by the President, on a nondelegable basis, that a specific loan is necessary to avert an industrial resource or critical technology shortfall that would severely impair national defense capability.
(Sept. 8, 1950, ch. 932, title III, §302, as added
Termination of Section
For termination of section, see
Editorial Notes
Codification
Section was formerly classified to section 2092 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.
Prior Provisions
A prior section 302 of act Sept. 8, 1950, ch. 932, title III,
Statutory Notes and Related Subsidiaries
Increasing Access to Materials Necessary for National Security and Pandemic Recovery
"(1) during the 2-year period beginning on the date of enactment of this Act [Mar. 27, 2020], the requirements described in sections 303(a)(6)(C) and 304(e) of the Defense Production Act of 1950 (
"(2) during the 1-year period beginning on the date of enactment of this Act, the requirements described in sections 302(d)(1) and 303(a)(6)(B) of the Defense Production Act of 1950 (
Legislative Waiver of Loan Limitations
Requirement described in subsec. (c)(1) of this section waived for the two-year period beginning with Mar. 27, 2020, see provision of title III of div. B of
Executive Documents
Delegation of Functions
Authority of President under this section with respect to responding to the spread of COVID–19 within the United States delegated to Secretary of Health and Human Services and the Secretary of Homeland Security, see section 2 of Ex. Ord. No. 13911, Mar. 27, 2020, 85 F.R. 18403, set out as a note under
Functions of President under this chapter relating to production, conservation, use, control, distribution, and allocation of energy, delegated to Secretary of Energy, see section 4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set out as a note under
For delegation of certain authority of President under this section, see sections 302 and 305(a) of Ex. Ord. No. 13603, Mar. 16, 2012, 77 F.R. 16654, set out as a note under
Ex. Ord. No. 13922. Delegating Authority Under the Defense Production Act to the Chief Executive Officer of the United States International Development Finance Corporation To Respond to the COVID–19 Outbreak
Ex. Ord. No. 13922, May 14, 2020, 85 F.R. 30583, provided:
By the authority vested in me as President by the Constitution and the laws of the United States of America, including the Defense Production Act of 1950, as amended (
To ensure that our country has the capacity, capability, and strong and resilient domestic industrial base necessary to respond to the COVID–19 outbreak, it is the policy of the United States to further expand domestic production of strategic resources needed to respond to the COVID–19 outbreak, including strengthening relevant supply chains within the United States and its territories. It is important to use all resources available to the United States, including executive departments and agencies (agencies) with expertise in loan support for private institutions. Accordingly, I am delegating authority under title III of the Act [
(b) The Chief Executive Officer of the DFC may use the authority under sections 302 and 303 of the Act, in consultation with the Secretary of Defense, the Secretary of Health and Human Services, the Secretary of Homeland Security, and the heads of other agencies as he deems appropriate, for the domestic production of strategic resources needed to respond to the COVID–19 outbreak, or to strengthen any relevant domestic supply chains.
(c) The loan authority delegated by this order is limited to loans that create, maintain, protect, expand, or restore domestic industrial base capabilities supporting:
(i) the national response and recovery to the COVID–19 outbreak; or
(ii) the resiliency of any relevant domestic supply chains.
(d) Loans extended using the authority delegated by this order shall be made in accordance with the principles and guidelines outlined in OMB Circular A–11, OMB Circular A–129, and the Federal Credit Reform Act of 1990, as amended (
(e) The Chief Executive Officer of the DFC shall adopt appropriate rules and regulations as may be necessary to implement this order.
(i) the authority granted by law to an executive department or agency, or the head thereof; or
(ii) the functions of the Director of the Office of Management and Budget relating to budgetary, administrative, or legislative proposals.
(b) This order shall be implemented consistent with applicable law and subject to the availability of appropriations.
(c) This order is not intended to, and does not, create any right or benefit, substantive or procedural, enforceable at law or in equity by any party against the United States, its departments, agencies, or entities, its officers, employees, or agents, or any other person.
Donald J. Trump.
§4533. Other presidential action authorized
(a) In general
(1) In general
To create, maintain, protect, expand, or restore domestic industrial base capabilities essential for the national defense, the President may make provision—
(A) for purchases of or commitments to purchase an industrial resource or a critical technology item, for Government use or resale;
(B) for the encouragement of exploration, development, and mining of critical and strategic materials, and other materials;
(C) for the development of production capabilities; and
(D) for the increased use of emerging technologies in security program applications and the rapid transition of emerging technologies—
(i) from Government-sponsored research and development to commercial applications; and
(ii) from commercial research and development to national defense applications.
(2) Treatment of certain agricultural commodities
A purchase for resale under this subsection shall not include that part of the supply of an agricultural commodity which is domestically produced, except to the extent that such domestically produced supply may be purchased for resale for industrial use or stockpiling.
(3) Terms of sales
No commodity purchased under this subsection shall be sold at less than—
(A) the established ceiling price for such commodity, except that minerals, metals, and materials shall not be sold at less than the established ceiling price, or the current domestic market price, whichever is lower; or
(B) if no ceiling price has been established, the higher of—
(i) the current domestic market price for such commodity; or
(ii) the minimum sale price established for agricultural commodities owned or controlled by the Commodity Credit Corporation, as provided in
(4) Delivery dates
No purchase or commitment to purchase any imported agricultural commodity shall specify a delivery date which is more than 1 year after the date of termination of this section.
(5) Presidential determinations
Except as provided in paragraph (7), the President may not execute a contract under this subsection unless the President, on a non-delegable basis, determines, with appropriate explanatory material and in writing, that—
(A) the industrial resource, material, or critical technology item is essential to the national defense;
(B) without Presidential action under this section, United States industry cannot reasonably be expected to provide the capability for the needed industrial resource, material, or critical technology item in a timely manner; and
(C) purchases, purchase commitments, or other action pursuant to this section are the most cost effective, expedient, and practical alternative method for meeting the need.
(6) Notification to Congress of shortfall
(A) In general
Except as provided in paragraph (7), the President shall provide written notice to the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives of a domestic industrial base shortfall prior to taking action under this subsection to remedy the shortfall. The notice shall include the determinations made by the President under paragraph (5).
(B) Aggregate amounts
If the taking of any action under this subsection to correct a domestic industrial base shortfall would cause the aggregate outstanding amount of all such actions for such shortfall to exceed $50,000,000, the action or actions may be taken only after the 30-day period following the date on which the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives have been notified in writing of the proposed action.
(C) Limitation
If the taking of any action or actions under this section to correct an industrial resource shortfall would cause the aggregate outstanding amount of all such actions for such industrial resource shortfall to exceed $50,000,000, no such action or actions may be taken, unless such action or actions are authorized to exceed such amount by an Act of Congress.
(7) Waivers authorized
The requirements of paragraphs (1) through (6) may be waived—
(A) during a period of national emergency declared by the Congress or the President; or
(B) upon a determination by the President, on a nondelegable basis, that action is necessary to avert an industrial resource or critical technology item shortfall that would severely impair national defense capability.
(b) Exemption for certain limitations
Subject to the limitations in subsection (a), purchases and commitments to purchase and sales under subsection (a) may be made without regard to the limitations of existing law (other than
(c) Presidential findings
(1) In general
The President may take the actions described in paragraph (2), if the President finds that—
(A) under generally fair and equitable ceiling prices, for any raw or nonprocessed material, there will result a decrease in supplies from high-cost sources of such material, and that the continuation of such supplies is necessary to carry out the objectives of this subchapter; or
(B) an increase in cost of transportation is temporary in character and threatens to impair maximum production or supply in any area at stable prices of any materials.
(2) Subsidy payments authorized
Upon a finding under paragraph (1), the President may make provision for subsidy payments on any such domestically produced material, other than an agricultural commodity, in such amounts and in such manner (including purchases of such material and its resale at a loss), and on such terms and conditions, as the President determines to be necessary to ensure that supplies from such high-cost sources are continued, or that maximum production or supply in such area at stable prices of such materials is maintained, as the case may be.
(d) Incidental authority
The procurement power granted to the President by this section shall include the power to transport and store and have processed and refined any materials procured under this section.
(e) Installation of equipment in industrial facilities
(1) Installation authorized
If the President determines that such action will aid the national defense, the President is authorized—
(A) to procure and install additional equipment, facilities, processes or improvements to plants, factories, and other industrial facilities owned by the Federal Government;
(B) to procure and install equipment owned by the Federal Government in plants, factories, and other industrial facilities owned by private persons;
(C) to provide for the modification or expansion of privately owned facilities, including the modification or improvement of production processes, when taking actions under
(D) to sell or otherwise transfer equipment owned by the Federal Government and installed under this subsection to the owners of such plants, factories, or other industrial facilities.
(2) Indemnification
The owner of any plant, factory, or other industrial facility that receives equipment owned by the Federal Government under this section shall agree—
(A) to waive any claim against the United States under
(B) to indemnify the United States against any claim described in paragraph (1) made by a third party that arises out of the presence or use of equipment owned by the Federal Government.
(f) Excess metals, minerals, and materials
(1) In general
Notwithstanding any other provision of law to the contrary, metals, minerals, and materials acquired pursuant to this section which, in the judgment of the President, are excess to the needs of programs under this chapter, shall be transferred to the National Defense Stockpile established by the Strategic and Critical Materials Stock Piling Act (
(2) Transfers at no charge
Transfers made pursuant to this subsection shall be made without charge against or reimbursement from funds appropriated for the purposes of the Strategic and Critical Materials Stock Piling Act (
(g) Substitutes
When, in the judgement of the President, it will aid the national defense, the President may make provision for the development of substitutes for strategic and critical materials, critical components, critical technology items, and other industrial resources.
(Sept. 8, 1950, ch. 932, title III, §303, as added
Termination of Section
For termination of section, see
Editorial Notes
References in Text
This chapter, referred to in subsec. (f)(1), was in the original "this Act", meaning act Sept. 8, 1950, ch. 932,
The Strategic and Critical Materials Stock Piling Act, referred to in subsec. (f), is act June 7, 1939, ch. 190, as revised generally by
Codification
Section was formerly classified to section 2093 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.
Prior Provisions
A prior section 303 of act Sept. 8, 1950, ch. 932, title III,
Amendments
2014—Subsec. (a)(5).
Subsec. (a)(5)(C).
Subsec. (a)(6)(C).
Statutory Notes and Related Subsidiaries
Effective Date of 2014 Amendment
Increasing Access to Materials Necessary for National Security and Pandemic Recovery
Requirement described in subsec. (a)(6)(B) of this section not applicable during the 1-year period beginning on Mar. 27, 2020, and requirement described in subsec. (a)(6)(C) of this section not applicable during the 2-year period beginning on Mar. 27, 2020, see section 4017 of
Authorization To Take Actions To Correct the Industrial Resource Shortfall for High-Purity Beryllium Metal
Resource Shortfall for Radiation-Hardened Electronics
"(a)
"(b)
"(1) the current state of the domestic industrial base for radiation-hardened electronics;
"(2) the projected requirements of the Department of Defense for radiation-hardened electronics;
"(3) the intentions of the Department of Defense for the industrial base for radiation-hardened electronics; and
"(4) the plans of the Department of Defense for use of providers of radiation-hardened electronics beyond the providers with which the Department had entered into contractual arrangements under the authority of the Defense Production Act of 1950 [
Executive Documents
Delegation of Functions
Authority of President under this section delegated to Chief Executive Officer of the United States International Development Finance Corporation, see section 2 of Ex. Ord. No. 13922, May 14, 2020, 85 F.R. 30583, set out as a note under
Authority of President under this section with respect to responding to the spread of COVID–19 within the United States delegated to Secretary of Health and Human Services and the Secretary of Homeland Security, see section 2 of Ex. Ord. No. 13911, Mar. 27, 2020, 85 F.R. 18403, set out as a note under
Functions of President under this chapter relating to production, conservation, use, control, distribution, and allocation of energy, delegated to Secretary of Energy, see section 4 of Ex. Ord. No. 11790, June 25, 1974, 39 F.R. 23185, set out as a note under
For delegation of certain authority of President under this section, see sections 303(a), 304, 305(b), and 306–308 of Ex. Ord. No. 13603, Mar. 16, 2012, 77 F.R. 16654, 16655, set out as a note under
Executive Waiver of Limitations
Requirements of subsec. (a)(1) to (6) of this section waived during the national emergency declared by Proc. No. 9994, Mar. 13, 2020, 85 F.R. 15337, set out as a note under
§4534. Defense Production Act Fund
(a) Establishment of Fund
There is established in the Treasury of the United States a separate fund to be known as the "Defense Production Act Fund" (in this section referred to as the "Fund").
(b) Moneys in Fund
There shall be credited to the Fund—
(1) all moneys appropriated for the Fund, as authorized by
(2) all moneys received by the Fund on transactions entered into pursuant to
(c) Use of Fund
The Fund shall be available to carry out the provisions and purposes of this subchapter, subject to the limitations set forth in this chapter and in appropriations Acts.
(d) Duration of Fund
Moneys in the Fund shall remain available until expended.
(e) Fund balance
The Fund balance at the close of each fiscal year shall not exceed $750,000,000, excluding any moneys appropriated to the Fund during that fiscal year or obligated funds. If, at the close of any fiscal year, the Fund balance exceeds $750,000,000, the amount in excess of $750,000,000 shall be paid into the general fund of the Treasury.
(f) Fund manager
The President shall designate a Fund manager. The duties of the Fund manager shall include—
(1) determining the liability of the Fund in accordance with subsection (g);
(2) ensuring the visibility and accountability of transactions engaged in through the Fund; and
(3) reporting to the Congress each year regarding activities of the Fund during the previous fiscal year.
(g) Liabilities against Fund
When any agreement entered into pursuant to this subchapter after December 31, 1991, imposes any contingent liability upon the United States, such liability shall be considered an obligation against the Fund.
(Sept. 8, 1950, ch. 932, title III, §304, as added
Termination of Section
For termination of section, see
Editorial Notes
References in Text
This chapter, referred to in subsec. (c), was in the original "this Act", meaning act Sept. 8, 1950, ch. 932,
Codification
Section was formerly classified to section 2094 of the former Appendix to this title prior to editorial reclassification and renumbering as this section.
Prior Provisions
A prior section 304, act Sept. 8, 1950, ch. 932, title III,
Statutory Notes and Related Subsidiaries
Increasing Access to Materials Necessary for National Security and Pandemic Recovery
Requirement described in subsec. (e) of this section not applicable during the 2-year period beginning on Mar. 27, 2020, see section 4017(1) of
Defense Production Act Fund Manager
Secretary of Defense designated Defense Production Act Fund Manager in accordance with subsec. (f) of this section, see section 309 of Ex. Ord. No. 13603, Mar. 16, 2012, 77 F.R. 16655, set out as a note under
Executive Documents
Executive Order No. 12346
Ex. Ord. No. 12346, Feb. 8, 1982, 47 F.R. 5993, related to the transition of synthetic fuel responsibilities from the Department of Energy to the United States Synthetic Fuels Corporation, revoked Ex. Ord. No. 12242, and provided that the provisions of Ex. Ord. No. 12242 would continue in full force and effect with respect to any loan guarantee issued under its provisions.
§4535. Reports on exercise of authorities
(a) In general
The President, or the head of an agency to which the President has delegated authorities under this subchapter, shall submit a report and provide a briefing to the appropriate congressional committees with respect to any action taken pursuant to such authorities—
(1) except as provided by paragraph (2), not later than 30 days after taking the action; and
(2) in the case of an action that involves a business concern in the United Kingdom or Australia, not later than 30 days before taking the action.
(b) Elements
(1) In general
Each report and briefing required by subsection (a) with respect to an action described in that subsection shall include—
(A) a justification of the necessity of the use of authorities under this subchapter; and
(B) a description of the financial terms of any related financial transaction.
(2) Additional elements relating to business concerns in the United Kingdom or Australia
Each report and briefing required by subsection (a) with respect to an action described in paragraph (2) of that subsection shall include, in addition to the elements under paragraph (1)—
(A) a certification that business concerns in the United States or Canada were not available with respect to the action; and
(B) an analysis of why such business concerns were not available.
(c) Appropriate congressional committees defined
In this section, the term "appropriate congressional committees" means—
(1) the Committee on Banking, Housing, and Urban Affairs of the Senate and the Committee on Financial Services of the House of Representatives; and
(2) in the case of an action described in subsection (a) involving materials critical to national security (as defined in
(Sept. 8, 1950, ch. 932, title III, §305, as added
Editorial Notes
Prior Provisions
Prior sections 305 to 310 of act Sept. 8, 1950, ch. 932, were omitted in the general amendment of title III of the Act by
Section 305, act Sept. 8, 1950, ch. 932, title III, as added
Section 306, act Sept. 8, 1950, ch. 932, title III, as added
Section 307, act Sept. 8, 1950, ch. 932, title III, as added
Section 308, act Sept. 8, 1950, ch. 932, title III, as added
Section 309, act Sept. 8, 1950, ch. 932, title III, as added
Section 310, act Sept. 8, 1950, ch. 932, title III, as added