Facts

• On Wed., Pres. Biden invoked the Defense Production Act (DPA) in an effort to increase the production of baby formula amid a nationwide shortage.
• The DPA was first enacted to avoid wartime shortages and requires companies to enter into contracts to produce materials deemed necessary for national defense.
• The order directs suppliers of formula ingredients to prioritize companies that manufacture infant formula. It also authorizes the Department of Defense (DOD) to use its aircraft to import formula.
• The DOD will speed up the importing of formula by using contracts with air cargo lines to bypass usual freight routers.
• The baby formula shortage was exacerbated in Feb. when Abbott Nutrition recalled formula due to potential contamination. The company has since reached a deal with the FDA to reopen its plant in Sturgis, Mich., and resume production.
• Following Biden's decision, the House passed legislation to give the FDA $28M to hire staff to ensure the quality of new formula. It also passed a separate bill that would allow people buying formula through the federally funded WIC program to switch brands during shortages.