September
8, 1950
Defense
Production Act signed into Law
The Defense Production Act
(Pub.L. 81–774) is a United States federal law enacted on September 8, 1950, in
response to the start of the Korean War. It was part of a broad civil defense
and war mobilization effort in the context of the Cold War.
The Act contains three major
sections. The first authorizes the President to require businesses to sign
contracts or fulfill orders deemed necessary for national defense. The second
authorizes the President to establish mechanisms (such as regulations, orders
or agencies) to allocate materials, services and facilities to promote national
defense. The third section authorizes the President to control the civilian
economy so that scarce and/or critical materials necessary to the national
defense effort are available for defense needs.
The President's authority to
place contracts under the DPA is the part of the Act most often used by the
Department of Defense (DOD) since the 1970s. Most of the other functions of the
Act are administered by the Office of Strategic Industries and Economic
Security (SIES) in the Bureau of Industry and Security in the Department of
Commerce.
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