Delegating Authority Under the Defense Production Act to the Chief Executive Officer of the United States International Development Finance Corporation To Respond to the COVID-19 Outbreak

Impact dates

1. Date TBD

   DFC CEO to adopt rules and regulations to implement order

2. Mar 27, 2022

   Delegation of authority expires (end of 2-year CARES Act DPA waiver period)

Key directives

• Delegate DPA sections 302 and 303 authority to DFC CEO for domestic production of COVID-19 strategic resources and supply chain strengthening
• Limit loans to those creating, maintaining, protecting, expanding, or restoring domestic industrial base capabilities for pandemic response/recovery or supply chain resiliency
• Require loans comply with OMB Circular A-11, OMB Circular A-129, and Federal Credit Reform Act
• DFC CEO must consult with Secretary of Defense, HHS Secretary, DHS Secretary, and other agency heads as appropriate
• DFC CEO shall adopt appropriate rules and regulations to implement order
• Delegation expires upon termination of 2-year CARES Act DPA waiver period under section 302(c)(1)

Who is ordered

• Chief Executive Officer of the U.S. International Development Finance Corporation · DFC
• Secretary of Defense · Department of Defense
• Secretary of Health and Human Services · Department of Health and Human Services
• Secretary of Homeland Security · Department of Homeland Security
• Agency Heads · Various

Timeline

Risks & tensions

• No specific deadline provided for rulemaking—'appropriate rules and regulations' timing is vague
• DFC traditionally focuses on international development finance; domestic industrial base role represents institutional expansion
• Loan authority contingent on 'availability of appropriations' creating potential funding uncertainty
• Overlap with prior DPA delegations in EO 13911 may create coordination challenges with other agencies
• 2-year sunset tied to CARES Act provision creates temporary but potentially extendable authority