WASHINGTON — After much pleading by Illinois Gov. J.B. Pritzker, President Donald Trump has invoked the Defense Production Act. In particular, he exercised the act because General Motors was not complying with what the federal government needed in the fight against COVID-19.
President Trump announced that he was invoking the Defense Production Act at the daily COVID-19 Task Force Briefing at the White House.
“This invocation of the DPA should demonstrate clearly to all that we will not hesitate to use the full authority of the federal government,” said Trump.
The first section of the Act requires businesses to accept and prioritize contracts that the president deems necessary for national defense.
Trump announced that economist Peter Navarro will serve as National Defense Production Act Policy Coordinator during this time. Navarro explained why Trump invoking this act was so important.
“We need industrial mobilization to make adequate ventilators particularly in the very short run,” said Navarro.
Trump and Navarro both referenced General Motors as a company they were having issues with that pushed Trump to invoke the Act.
“We thought we had a deal with, as an example, General Motors and I guess they thought otherwise,” said Trump.
Trump and Navarro said that GM was not producing the amount of ventilators they needed while other companies, like Ford, were complying.
In addition to invoking the Defense Production Act, Trump also signed the largest rescue package in American history earlier Friday. The $2.2 trillion bill will be used to assist American businesses, workers and families in need.
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