Biden Invokes Defense Production Act to Fund Domestic Electric Heat Pump Manufacturing

The move, part of the administration's climate agenda, will allocate $169 million to nine projects across 15 sites, creating 1,700 jobs.

President Biden has invoked the Defense Production Act, a Cold War-era law, to fund the domestic manufacturing of electric heat pumps, an alternative to gas-powered residential furnaces.
The federal government will award $169 million for nine projects across 15 sites nationwide to accelerate electric heat pump manufacturing.
The move is part of the Biden administration's broader effort to curb greenhouse gas emissions and comes less than two months after new regulations targeting traditional home gas-powered furnaces were issued.
The funded projects will create 1,700 jobs and are expected to strengthen America’s energy supply chain and boost American competitiveness in industries of the future.
Critics argue that the government has no role in favoring one energy source over another and that this move constitutes corporate welfare.