# Energy Department Puts Up to $150 Million Toward Restarting and Expanding U.S. Refineries as Diesel Hits $6.32 a Gallon

President Trump signed a determination that oil production, refining and fuel logistics are vital to national defense. Analysts told the Daily Caller the money helps but cannot fix prices soon, since refineries are already running near 94 percent.

- Section: [Economy](https://rightnewsrightnow.com/economy/)
- Published: 2026-10-24
- By: RightNewsRightNow Staff
- Canonical page: https://rightnewsrightnow.com/articles/energy-department-150-million-defense-production-act-refineries-diesel-6-32/

The Trump administration is putting federal money behind U.S. refineries as fuel costs squeeze families, the Daily Caller News Foundation reports.

The announcement. The Energy Department said 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, including restarting an idled one. President Donald Trump signed a determination the same day declaring U.S. oil production, refining and fuel logistics vital to national defense. Energy Secretary Chris Wright said the funds "will be used strategically and in partnership with private industry to rapidly bolster America's existing energy infrastructure."

The prices. AAA put diesel at $6.32 a gallon nationally on Friday, up from $3.63 a year earlier.

What is not decided. The department has not said which refineries will get money and says it will announce selections soon. The Caller notes Vice President JD Vance has said the administration plans to use the law to expand a Delek US Holdings refinery in Texas, per Reuters. Phillips 66 declined to comment. America First Refining, which is developing a new refinery targeted to open in 2029, did not say whether it would seek funds. Congress set aside $1 billion for energy projects considered vital to national security through the Working Families Tax Cuts law, the department said.

The reaction. An American Fuel & Petrochemical Manufacturers spokesperson said "refineries are national security and economic assets" and that the country's 128 operating refineries "are running all-out." Matt McManus of the National Center for Energy Analytics said the funds signal that supply is a national priority but is "not an immediate fix." His colleague Neil Atkinson was more blunt: "$150 million is not much money to spend in an industry that requires many hundreds of millions and into the billions," and "there is almost no idle capacity in the U.S." He said refineries are running at about 94 percent of capacity, citing Energy Information Administration figures. The American Petroleum Institute said it is reviewing the action.

California. The Caller notes Valero finished idling all processing units at its Benicia, California, refinery in April. Gov. Gavin Newsom's office did not immediately comment.

Note for readers: the Caller says the department added nothing beyond its release, and several refiners had not responded when it published. Which plants benefit is still unannounced.

## Source

Original reporting: [Daily Caller News Foundation](https://dailycaller.com/2026/10/23/defense-production-act-refineries-energy-department-chris-wright-matt-mcmanus-afpm)