October 14, 2026

White House Uses Cold War Law to Boost Texas Refinery

White House Uses Cold War Law to Boost Texas Refinery

The Trump administration leverages the Defense Production Act to expand a Texas refinery amid soaring diesel prices.

The U.S. government has activated a Cold War-era law to support a small Texas refinery, according to Vice President JD Vance. The move aims to increase fuel production at Delek’s facility in Tyler, Texas, as the administration seeks to address record-high diesel prices. The Defense Production Act, originally enacted in 1950, allows the president to direct private businesses to produce critical materials for national defense and emergency preparedness. With midterm elections approaching, the administration has explored various options to stabilize fuel markets, including a controversial deal with Russia for diesel supplies. However, analysts suggest these measures may not significantly impact prices in the short term. The current diesel price remains well above $6 per gallon, with experts warning that high prices are likely to persist due to global supply constraints and geopolitical tensions.

Impact
The refinery expansion may provide limited relief to fuel prices ahead of the midterms, but analysts doubt it will significantly lower costs in the near term.