Finance

The Trump administration considers using 1950s-era law to ramp up production of masks and protective gear as coronavirus spreads

penceAP Photo/Andrew Harnik)

  • The US could invoke a 1950s-era law that would allow the government to ramp up the production of gear to combat the spread of the coronavirus.
  • The White House is exploring the potential use of the Defense Production Act to do so, a senior administration official and a congressional aide familiar with the matter said Friday.
  • “A lot of things are under discussion,” the administration official told Business Insider, speaking on the condition of anonymity to discuss internal deliberations.
  • Visit the Business Insider homepage for more stories.

The US could invoke a 1950s-era law that would allow the government to ramp up the production of gear to combat the spread of the coronavirus, a senior administration official and a congressional aide familiar with the matter said Friday.

The Trump administration is exploring the potential use of the Defense Production Act to increase the domestic availability of protective masks and clothing, according to the officials, but no final decision has been made.

“A lot of things are under discussion,” the administration official told Business Insider, speaking on the condition of anonymity to discuss internal deliberations.

The proposal to invoke the law, which was first reported by Reuters, gives the president the broad authority over industrial output in the name of national security.

It comes days after the Centers for Disease Control warned the respiratory illness COVID-19 would almost certainly hit communities in the US. The novel coronavirus has spread outside of its epicenter in China to more than four dozen countries, raising concerns among governments and health officials about the potential for a pandemic.

The White House referred questions on the proposal to the office of Vice President Mike Pence, who was tapped on Wednesday to lead the government response to the coronavirus outbreak. A spokesperson at the Department of Health and Human Services said it would “not comment on internal deliberations.” The Department of Homeland Security declined to comment.

The Defense Production Act, which was passed in response to the Korean War, authorizes the president to take actions to “force private industry to give priority to defense and homeland security contracts and to allocate the resources needed,” according to the Congressional Research Service.

It could be implemented through company contract requirements and various financial measures including loans and purchase commitments. The rapid spread of COVID-19 has prompted nations to roll out restrictions on travel and commerce, raising concerns about disruptions to supply chains and broader business operations.

Honeywell International, one of the largest producers of face masks, said it has experienced a surge in demand for protective gear in recent weeks and that it was open to coordination with the US government.

“We are increasing production at multiple facilities globally to address the growing demand,” a spokesperson said in a statement to Business Insider. “We are ready and willing to partner with the US government to support national response efforts.”

Congressional appropriators plan to soon unveil an emergency funding to address the coronavirus outbreak. The White House initially requested a $2.5 billion package that diverted some money from other federal accounts, but Trump has since signaled he was open to the $8 billion Democrats said was necessary.

HHS Secretary Alex Azar told Congress on Tuesday the nation may need 300 million N95 masks, used by health workers with direct exposure to airborne infections. The government currently has about 30 million of the respirators in an emergency stockpile, he said.

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