Companies in the energy industry — especially those involving coal, natural gas, grid infrastructure, large-scale energy infrastructure and domestic petroleum — may find long-term opportunities in a series of actions at the White House.
To facilitate access to federal funding for a wide array of energy infrastructure projects, President Donald Trump issued five presidential determination memoranda invoking Section 303 of the Defense Production Act of 1950, as amended (DPA). These memoranda to Secretary of Energy Chris Wright, issued April 20, 2026, signal the administration’s intent to deploy the full authority of the DPA to accelerate investment in domestic energy infrastructure across multiple fuel types, grid systems and supply chains. These memoranda also reference Executive Order 14156, issued by Trump on Jan. 20, 2025, declaring a national energy emergency under the National Emergencies Act. Before federal funding flows, additional action by the Department of Energy (DOE) and potentially other agencies will need to occur.
Summary of the Five Memoranda
In each memorandum, the president (i) determines that a specified category of energy resources constitutes “industrial resources, materials, or critical technology items essential to the national defense,” (ii) finds that the private sector cannot provide these capabilities in a timely manner without federal intervention, (iii) waives the procedural requirements of Sections 303(a)(1) through (a)(6) of the DPA, and (iv) authorizes the Secretary of Energy to make purchases, purchase commitments and provide other financial support to expand domestic capacity. The five sectors addressed in the memoranda include coal; natural gas, including liquified natural gas (LNG); the nation’s electric grid; large-scale energy; and petroleum.
- Coal Supply Chains and Baseload Power Generation Capacity
This memorandum covers coal mining, rail and barge logistics, export and domestic terminals, generating unit availability and life-extension work, on-site stockpiles, and associated reliability updates. It frames coal-fired baseload power as indispensable to defense installations, industrial expansion and the high-energy demands of emerging technologies such as AI and signals the Trump administration’s continued commitment to ensuring the coal industry’s viability into the future. - Natural Gas Transmission, Processing, Storage and LNG Capacity
This memorandum encompasses gathering and transmission pipelines, compression, processing plants, underground storage, LNG liquefaction and export facilities, and critical distribution infrastructure. It is notable for its international security framing, citing the need for the United States to supply reliable energy to allied and partner nations and warning that hostile foreign actors have weaponized America’s reliance on foreign energy. - Grid Infrastructure, Equipment and Supply Chain Capacity
This memorandum pertains to transformers, transmission lines and conductors, substations, high-voltage circuit breakers, power control electronics, protective relay systems, capacitor banks, electrical core steel, and related raw materials and manufacturing tools. It warns that the United States’ overreliance on imported grid equipment leaves it vulnerable in the event of war, disaster or economic disruption. - Development, Manufacturing and Deployment of Large-Scale Energy and Energy-Related Infrastructure
The broadest of the five, this memorandum is not limited to any single fuel type. It covers engineering, site acquisition and preparation, permitting, early-stage risk mitigation financing instruments, domestic manufacturing capacity, and enabling infrastructure. As in the other memoranda, the President reasons that invoking the DPA is necessary to ensure the United States’ national security. The President determines that the domestic capability for development, manufacturing, and deployment of large-scale energy and energy-related infrastructure is essential to bolstering currently vulnerable areas in the United States’ ability to defend itself against hostile foreign actors. - Domestic Petroleum Production, Refining and Logistics Capacity
This memorandum covers exploration and production, gathering and transmission pipelines, storage, and marine terminals. It emphasizes that petroleum fuels the nation’s armed forces, industrial base and crucial infrastructure and that the United States is therefore in urgent need of strengthening its ability to produce and refine this resource.
What These Memoranda Do and Do Not Accomplish
With the issuance of these memoranda, the secretary of energy is now authorized to deploy DPA Title III tools — including direct government purchases, long-term purchase commitments, offtake agreements, loan guarantees, grants and other financial instruments — to support expansion of the covered energy supply chains and infrastructure. However, the memoranda leave the specific form, scope, timing and funding of these actions entirely to the implementing agencies.
Potential Implementing Actions
While the Trump administration has not announced specific programs, the breadth of the authorities invoked by the memoranda suggests a range of potential implementing actions, including:
- Coal. Long-term power purchase agreements by the Department of Defense or other federal agencies for coal-fired generation and direct federal contracts for coal supply to support domestic mining and logistics operations;
- Natural gas and LNG. Purchase commitments or financial incentives for pipeline, processing, storage and LNG export infrastructure, potentially including export credit or guarantee mechanisms to facilitate allied LNG offtake;
- Grid infrastructure. Long-term procurement contracts for domestically manufactured transformers, conductors and substations (potentially addressing the long-standing policy objective of a strategic transformer reserve) as well as support for upstream manufacturing capacity for components such as electrical core steel;
- Large-scale energy infrastructure. Early-stage risk mitigation financing instruments such as loan guarantees, standby purchase commitments or credit enhancements for large-scale energy projects during the development phase;
- Petroleum. Long-term supply contracts for refined products, support for refinery and pipeline expansion, and investment in strategic storage and marine terminal infrastructure; and
- Transmission. The memoranda may supplement the DOE’s existing transmission contracting authority by providing additional procurement and financing tools under a national defense justification.
Practical Considerations for Industry Participants
A significant period may elapse between the issuance of these memoranda and the announcement of specific implementing actions. The DOE will need to develop program structures, establish eligibility criteria, likely issue requests for proposal (RFPs) or funding opportunity announcements (FOAs), and in some cases, complete interagency coordination and rulemaking. Additional congressional appropriation of funds may also be required depending on the scale of any proposed financial commitments.
However, the issuance of five sector-specific memoranda in rapid succession, coupled with the waiver of statutory procedural prerequisites, strongly suggests that the Trump administration intends to move with urgency. Industry participants should consider the following steps:
- Monitor agency activity. Track forthcoming guidance, rulemaking, RFPs and FOAs from the DOE and related agencies for early awareness of program structures and eligibility criteria.
- Assess strategic positioning. Evaluate whether existing projects, assets or supply chain capabilities align with the categories of covered resources. Companies demonstrating a nexus between their activities and national defense requirements may be well positioned for federal support.
- Engage with policymakers. Because program structures have yet to be defined, there may be opportunities to provide input through public comment processes, industry consultations or direct agency engagement.
- Review financing structures. Consider how potential federal offtake commitments, loan guarantees or other instruments could affect project economics, credit profiles and capital structures.
- Evaluate regulatory implications. The national defense framing may have implications for permitting, environmental review and other regulatory processes. Companies should consult with counsel regarding the potential for expedited review or other procedural advantages.
The lawyers and professionals at McGuireWoods and McGuireWoods Consulting are monitoring these developments. For questions or more information, reach out to the authors or a member of McGuireWoods’ Energy Infrastructure Practice Group or McGuireWoods Consulting.