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
This executive order delegates key authority from the president to the Chief Executive Officer of the U.S. International Development Finance Corporation (DFC) under the Defense Production Act (DPA) to respond to the COVID-19 outbreak. Specifically, the DFC CEO is empowered to make loans, provide for purchases and commitments to purchase, and take other actions to create, maintain, expand, or restore the domestic industrial base and supply chains needed to combat COVID-19. The authority is limited to supporting domestic production of strategic resources and the resilience of relevant domestic supply chains, and it must follow established budgeting and credit rules. The delegation is temporary, expiring after a two-year period tied to certain CARES Act waivers, and it does not alter other legal authorities or budgetary processes.
Key Points
- 1Delegation of authority: The DFC CEO is given the President’s authority under sections 302 and 303 of the Defense Production Act, enabling the DFC to finance and facilitate domestic production related to COVID-19, and to implement the Act through the DFC’s operations.
- 2Scope of use: The authority is limited to activities that create, maintain, protect, expand, or restore domestic industrial base capabilities supporting the national COVID-19 response or the resiliency of domestic supply chains.
- 3Financing tools: The DFC may use loan authority, and may arrange for purchases or commitments to purchase, to support domestic production and supply chains.
- 4Implementation requirements: Loans and actions must follow the principles of OMB Circular A-11 and A-129 and the Federal Credit Reform Act, with the DFC adopting necessary rules and regulations to implement the order.
- 5Coordination and oversight: The DFC CEO may consult with the Secretary of Defense, the Secretary of Health and Human Services, the Secretary of Homeland Security, and other agency heads as appropriate.
- 6Term and legal framework: The delegation expires after a two-year period during which CARES Act waivers (Division B, Title III provisions) related to Section 302(c)(1) are in effect. The order preserves existing legal authorities, budget processes, and does not create enforceable rights.