Baby formula shortage: Biden to invoke Defense Production Act
CBSN
President Biden announced Wednesday that he will invoke the Defense Production Act to address the baby formula shortage, meaning suppliers will be required to give resources to infant formula plants before sending them to other customers.
"I know parents all across the country are worried about finding enough infant formula to feed their babies," Mr. Biden said in the announcement. "As a parent and as a grandparent, I know just how stressful that is."
The Defense Production Act, enacted in 1950, authorizes the president to require companies to sign contracts or fill orders for products needed for the nation's defense. It also lets the president make sure price gouging doesn't occur and gives the president freedom to incentivize the expanded production, with loans and purchase commitments.
