H.R. 4609: To extend the authority to carry out the Defense Production Act of 1950.

This bill proposes an extension of the authority granted by the Defense Production Act of 1950. Specifically, it amends a section of this act to extend the expiration date of its authority from September 30, 2025, to September 30, 2031. This means that the federal government would retain the ability to require businesses to prioritize and accept contracts deemed necessary for national defense and related activities for an additional six years.

Key Provisions

• Extension of Authority: The bill aims to prolong the existing authority of the Defense Production Act, allowing federal intervention in the production and supply of materials and services necessary for national security.
• Impact on Businesses: Businesses may be called upon to produce essential goods or services for defense needs, potentially including everything from military equipment to technology necessary for national security.
• Broader Implications: This extension could affect areas like public health, emergency preparedness, and infrastructure security, as the government may focus on securing resources in these sectors as part of its defense strategy.

Intent and Background

The Defense Production Act was originally enacted to ensure the availability of essential materials and services during times of national emergency. By extending this act, the government signals its intent to maintain readiness and enhance its ability to respond to future crises that may impact national security.

Potential Industry Impact

With the extension of these authorities, certain industries might see changes in their operations or contracts, especially those involved in defense manufacturing, healthcare provision, or critical infrastructure support. Companies in these sectors could face either new opportunities or regulatory challenges depending on the specifics of government contracts and prioritizations.

Relevant Companies

• BA - Boeing: As a major defense contractor, Boeing could see increased demand for military aircraft and other defense-related products due to the extended authorities of the Defense Production Act.
• LDOS - L3Harris Technologies: This company specializes in communications and electronic systems for defense, and could benefit from prioritized contracts arising from the government's extended authority.
• RTX - Raytheon Technologies: With a focus on defense and aerospace products, Raytheon Technologies might engage in more contracts as a result of the expanded Defense Production Act.
• NOC - Northrop Grumman: This defense technology company may see impacts related to government contracts for defense systems and technologies due to the extended authority provided by the bill.