Trump Wants More Gas And Diesel Made At Home, And He’s Paying $150 Million To Make It Happen
The Trump administration is putting up federal money to restart an idled American refinery and expand others as fuel costs squeeze families.
Simon August · Oct 23, 2026 · 4 min read
The Trump administration is putting up federal money to restart an idled American refinery and expand others as fuel costs squeeze families.
The Energy Department announced Thursday it will spend as much as $150 million under the Defense Production Act to boost oil output, storage and fuel shipping at U.S. refineries, according to a department release. President Donald Trump signed a determination the same day declaring U.S. oil production, refining and fuel logistics vital to national defense.
“These Defense Production Act funds will be used strategically and in partnership with private industry to rapidly bolster America’s existing energy infrastructure,” Energy Secretary Chris Wright said in the release.
“The whole world has seen this year that refineries are national security and economic assets, and U.S. refineries are the strongest example,” a spokesperson for the American Fuel & Petrochemical Manufacturers (AFPM) said in a statement to the Daily Caller News Foundation. “We appreciate the Trump administration’s continued acknowledgement of the importance of America’s fuel refineries.”
“The Defense Production Act is helpful in signaling to the energy industry and financial markets that energy supply is a strategic national priority, thereby supporting market forces in bringing additional capital to bear,” Matt McManus, a senior fellow at the National Center for Energy Analytics, said in a statement to the DCNF.
The Energy Department said it had nothing further to add beyond its release. Phillips 66 declined to comment, and Valero, Delek US Holdings and LyondellBasell did not immediately respond to the DCNF’s requests for comment.
Diesel averaged $6.32 a gallon nationally Friday, up from $3.63 a year earlier, according to the American Automobile Association.
The department has not said which refineries will receive the money and said in the release that it will announce its selections soon.
Vice President JD Vance has said the administration plans to use the law to expand a Delek US Holdings refinery in Texas, according to Reuters.