Presidential Determination and Delegation of Authority Under Section 708 of the Defense Production Act of 1950, as Amended

This determination invokes Section 708 of the Defense Production Act to address systemic constraints in the munitions industrial base, including limited production capacity, fragile supply chains, and production bottlenecks. It delegates authority to the Secretary of War to make voluntary agreements and plans of action with industry to expand munitions, missiles, and defense equipment production, subject to consultation and approval requirements.

Federal Register Open PDF 91 FR 36745

Impact dates

Jun 16, 2026
Federal Register publication

Market exposure

Policy exposure mapping — not investment advice. Illustrative public companies are incomplete and not recommendations.

Sectors

Defense primes Steel & aluminum Chemicals Other industrial

Mechanisms

ProcurementSubsidy / incentive

Role pressure

ProtectiveDomestic producer — Voluntary agreements and DPA prioritization likely to direct contracts, capital, and purchase guarantees to domestic munitions and missile producers
MixedEquipment supplier — Supply chain bottlenecks may ease for some tiers while DPA prioritization could disrupt existing commercial arrangements
ProtectiveDownstream manufacturer — Defense equipment integrators benefit from expanded production capacity and supply chain stabilization efforts

Geographies

Illustrative public companies

Curated watchlist matches by sector/role — incomplete; not a recommendation.

MMM3MALBAlbemarleAAAlcoaAAPLAppleBASFYBASFBABoeingCATCaterpillarCENXCentury AluminumCLFCleveland-CliffsCTVACortevaDOWDowDDDuPontFCXFreeport-McMoRanGEVGE VernovaGDGeneral DynamicsHONHoneywellLMTLockheed MartinLYBLyondellBasellNOCNorthrop GrummanNUENucorRTXRTXSPYSPDR S&P 500 ETFSQMSQMXUnited States Steel

Confidence: medium · Policy alerts

Key directives

Delegate authority under sections 708(c)(1) and 708(d) to Secretary of War for voluntary agreements and plans of action
Subject Secretary's authority to consultation and approval requirement of section 708(c)(2)
Publish determination in Federal Register

Who is ordered

Secretary of War · DOD/War Department

Timeline

Immediate

Delegation of authority to Secretary of War
Federal Register publication directive

Near term (90d)

Initiation of voluntary agreements with defense industry
Consultation processes under 708(c)(2)

Long term

Potential expansion of munitions production capacity
Supply chain restructuring for defense industrial base

Risks & tensions

Use of 'Secretary of War' is anachronistic; position abolished in 1947, replaced by Secretary of Defense — creates legal/implementation uncertainty
Voluntary agreements framework may limit coercive power compared to mandatory DPA authorities
No specific quantitative production targets or timelines specified in determination
Section 708(c)(2) consultation requirements may slow response to urgent industrial base gaps