Hearings to examine securing America, focusing on key authorities under the Defense Production Act

Defense Posture and Global ThreatsSenate Banking, Housing, and Urban Affairs · 2025-05-22 · 119th Congress
The Senate Banking, Housing, and Urban Affairs Committee held this hearing to examine the Defense Production Act (DPA), a Cold War-era authority set to lapse in September, and how it could be reauthorized and modernized to address critical mineral shortages, pharmaceutical supply chains, and strategic competition with China. Begins at 0:16:38
Transcript
Highlights

Title

Reauthorizing the Defense Production Act amid China supply chain risks

Purpose

The Senate Banking, Housing, and Urban Affairs Committee held this hearing to examine the Defense Production Act (DPA), a Cold War-era authority set to lapse in September, and how it could be reauthorized and modernized to address critical mineral shortages, pharmaceutical supply chains, and strategic competition with China. Witnesses from a mining company, a catastrophic-risk nonprofit, an academic government-contracting center, and a foreign policy think tank testified on the DPA's history, its use during COVID-19, and proposed reforms to Titles I, III, and VII. Begins at0:16:38

Who spoke

Chair Rick Scott (R-FL)0:16:38: Opened by calling the DPA a vital tool for national security and economic resilience, citing overreliance on foreign sources for critical minerals and pharmaceuticals0:17:28; later pressed Ms. Lyon on permitting delays0:58:14 and Dr. Doshi on expanding the definition of national defense1:01:43.

Sen. Elizabeth Warren (D-MA), Ranking Member0:20:24: Traced DPA's history from the Korean War through Katrina and COVID0:20:470:21:29; cited that U.S. chip production fell from 37% to 12% of the world share since 1990 and that 9 of 10 U.S. prescriptions are manufactured overseas0:22:48; criticized the administration's tariff approach while urging DPA reauthorization before its September lapse0:53:010:24:47.

Ms. McKinsey Lyon, VP of External Affairs, Perpetua Resources0:25:44: Described how a $59 million DPA Title III award saved her company's Idaho antimony mine project, attracting $54 million in additional private investment0:29:400:30:07; said the U.S. permitting timeline for her project is about 18 years, the second-longest in the world after Zambia1:00:58.

Mr. Jared Brown, Executive Director, Global Shield0:31:16: Argued DPA is indispensable for worst-case scenarios from nuclear war to pandemics0:32:57; said government agencies often assume the private sector can meet DPA orders without verifying true capacity0:33:47, and recommended modernizing Title VII oversight0:35:14.

Dr. John McGinn, Executive Director, Baroni Center for Government Contracting, George Mason University0:36:20: Recommended keeping DPA focused on defense/national security, removing the requirement that the president sign each Title III determination, and raising the $750 million DPA Fund cap0:38:580:39:28; noted DPA has been reauthorized 53 times0:41:17.

Dr. Rush Doshi, C.V. Starr Senior Fellow, Council on Foreign Relations0:42:07: Said China's economy is now 130% of U.S. GDP by purchasing power and China has 200 times U.S. shipbuilding capacity0:42:350:43:04; warned failing to reauthorize DPA would undermine Trump's critical minerals executive order and future pandemic response0:44:28.

Sen. Bernie Moreno (R-OH)0:47:13: Discussed his bipartisan PROTECT Act with Sen. Slotkin to close the CFIUS greenfield-investment loophole0:47:39; raised concerns about the DPA fund's move from Wright-Patterson Air Force Base to a centralized management structure0:49:14 and criticized prior "politicized" DPA use in green energy0:50:51.

Sen. Andy Kim (D-NJ)0:54:49: Asked about DOD's Bio Industrial Manufacturing Program and biotech supply chain risks1:04:49; questioned how DPA can counter China "flooding the market" to undercut new U.S. mineral producers1:07:20.

Sen. Pete Ricketts (R-NE)1:09:03: Called Communist China the single greatest threat facing the U.S.1:09:27; asked how DPA vets foreign-adversary ties in funding recipients1:13:44 and how permitting delays affect national security scaling1:10:22.

Sen. Mike Rounds (R-SD)1:19:00: Asked about steps to strengthen domestic mineral processing capacity1:19:26 and closed the hearing on the chairman's behalf, thanking witnesses1:25:47.

Sen. Jack Reed (D-RI)1:20:42: Asked the panel about the risks of failing to reauthorize DPA, drawing responses from all four witnesses on catastrophic-response and war-fighting readiness1:24:041:24:291:25:041:25:32.

Key moments

Ms. Lyon said China and Russia control 90% of the global antimony supply, and China informally halted shipments of military-grade antimony trisulfide to the U.S. in 20210:27:300:27:55.

Dr. McGinn said DPA Title I secured over $3 billion in contracts for ventilators and PPE during COVID-19, and $500 million was appropriated in 2023 for specialty chemicals, hypersonics, microelectronics, and critical minerals0:37:360:38:28.

Sen. Warren cited Defense Logistics Agency data showing 27% of DOD pharmaceutical supply chains are "very high risk" due to dependence on China or unknown sources, with another 27% at "high risk"0:55:59.

Dr. Doshi said U.S. manufacturing's share of global output fell from 30% to 17% since China joined the WTO and could fall to 11% within five years0:54:47.

Chair Scott noted it took 29 years to open a mine under current permitting rules, calling it "not frustrating but infuriating"1:00:20; Ms. Lyon confirmed that timeline is the second-longest in the world after Zambia1:00:58.

Sen. Ricketts noted the Army Corps took six years to permit raising a two-foot levee near STRATCOM's nuclear command base, contrasting it with mining permit timelines1:11:58.

Dr. McGinn said the $750 million cap on the DPA Fund resulted from a prior reauthorization backlash after politically controversial (green energy) projects were funded under DPA0:51:51.

Sen. Moreno and Dr. McGinn discussed closing the CFIUS "greenfield investment" loophole via the bipartisan PROTECT Act, since CFIUS currently only reviews acquisitions of existing U.S. companies0:47:390:48:06.

Dr. Doshi said China has 200 times U.S. shipbuilding capacity, 80% of global drone production, and that in a conflict the U.S. would exhaust critical munitions within about a week0:43:04.

Mr. Brown said he "cannot think of any really bad, dark day in American history that doesn't rely on the DPA to respond to," and without reauthorization catastrophic response plans are "gutted"1:24:291:24:54.

Metadata

CommitteeSenate Banking, Housing, and Urban Affairs
Chamber / CongressSenate · 119th Congress
Date2025-05-22
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript196 caption blocks · 9,150 words · 1:26:31 runtime
EventCongress.gov 336999