Defense Production Act Amendments of 1984
PL 98-265 (S.1852), enacted 04/17/1984

PUBLIC LAW 98-265—APR. 17, 1984 
98 STAT. 149 
Public Law 98-265 
98th Congress 
An Act 
To extend the expiration date of the Defense Production Act of 1950. 
Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, 
SHORT TITLE 
SECTION 1. This Act may be cited as the "Defense Production Act 
Amendments of 1984". 
Apr. 17, 1984 
[S. 1852] 
Defense 
Production Act 
Amendments of 
1984. 
50 u s e app. 
2061 note. 
EXTENSION OF THE DEFENSE PRODUCTION ACT OF 1950 
SEC. 2. The first sentence of section 717(a) of the Defense Produc-
tion Act of 1950 (50 U.S.C. App. 2166(a)) is amended by striking out 97 Stat. 1267. 
"March 30, 1984" and inserting in lieu thereof "^ptember 30, 
1986". 
DETERMINATIONS REQUIRED BEFORE THE AWARDING OF FINANCIAL 
ASSISTANCE 
SEC. 3. (a) Section 301(a) of the Defense Production Act of 1950 (50 
U.S.C. App. 2091(a)) is amended by adding at the end thereof the 
following: 
"(3) Except during periods of national emergency declared by the President of U.S. 
Congress or the President, a guarantee may be entered into under 
this section only if the President determines that— 
"(A) the guaranteed contract or operation is for a material, or 
the performance of a service, which is essential to the national 
defense; 
"(B) Without the guarantee. United States industry cannot 
reasonably be expected to provide the capability for the needed 
material or service in a timely manner; 
"(C) the guarantee is the most cost-effective, expedient, and 
practical alternative for meeting the need involved; and 
"(D) the United States national defense demand is equal to, or 
greater than, the output of domestic industrial capability which 
the President reasonably determines to be available for national 
defense, including the output to be established through the 
guarantee.", 
(b) Section 302 of the Defense Production Act of 1950 (50 U.S.C. 
App. 2092) is amended— 
(1) by redesignating the first sentence as subsection (a); and 
(2) by striking out the second and third sentences and insert- Loans. 
ing in lieu thereof the following: 
"(b) Such loans may be made without regard to the limitations of 
existing law and on such terms and conditions as the President 
deems necessary, except that— 
"(1) financial assistance may be extended only to the extent 
that it is not otherwise available on reasonable terms; and 
98 STAT. 150 
PUBLIC LAW 98-265—APR. 17, 1984 
"(2) except during periods of national emergency declared by 
the Congress or the President, no such loan may be made unless 
the President determines that— 
"(A) the loan is for the expansion of capacity, the develop-
ment of a technological process, or the production of materi-
als essential to the national defense; 
"(B) without the loan, United States industry cannot 
reasonably be expected to provide the needed capacity, 
technological processes, or materials in a timely manner; 
"(C) the loan is the most cost-effective, expedient, and 
practical alternative method for meeting the need; and 
"(D) the United States national defense demand is equal 
to, or greater than, domestic industrial capability which 
the President reasonably determines to be available for 
national defense, including the output to be established 
through the loan.". 
President o
f U.S. 
(c) Section 303(a) of the Defense Production Act of 1950 (50 U.S.C. 
Prohibition. 
App. 2093(a)) is amended by adding at the end thereof the following: 
Contracts. 
"Except during periods of national emergency declared by the Con-
gress or the President, the President may not execute a contract 
under this subsection unless the President determines that— 
"(1) the mineral, metal, or material is essential to the 
national defense; 
"(2) without Presidential action under authority of this 
section. United States industry cannot reasonably be expected 
to provide the capability for the needed mineral, metal, or 
material in a timely manner; 
"(3) purchases, purchase commitments, or other action pursu-
ant to this section are the most cost-effective, expedient, and 
practical alternative method for meeting the need; and 
"(4) the United States national defense demand for the min-
eral, metal, or material is equal to, or greater than, the output 
of domestic industrial capability which the President reason-
ably determines to be available for national defense, including 
the output to be established through the purchase, purchase 
commitment, or other action.". 
UMITATIONS ON THE AWARDING OF FINANCIAL ASSISTANCE 
SEC. 4. (a) Section 301(eXl) of the Defense Production Act of 1950 
(50 U.S.C. App. 2091(eXl)) is amended to read as follows: 
"(eXlXA) Except during periods of national emergency declared by 
the Congress or the President, a guarantee may be made under this 
section only if the industrial resource shortfall which such guaran-
tee is intended to correct has been identified in the Budget of the 
United States, or amendments thereto, submitted to the Congress, 
accompanied by a statement from the President demonstrating that 
the budget submission is in accordance with the provisions of subsec-
tion (aX3) of this section. 
"(B) Any such guarantee may be made only after 60 days have 
elapsed after such industrial resource shortfall has been identified 
pursuant to subparagraph (A). 
"(C) If the making of any guarantee or guarantees to correct an 
industrial resource shortfall would cause the aggregate outstanding 
amount of all guarantees for such industrial resource shortfall to 
exceed $25,000,000, any such guarantee or guarantees may be made 
only if specifically authorized by law.". 
PUBLIC LAW 98-265—APR. 17, 1984 
98 STAT. 151 
(b) Section 302 of the Defense Production Act of 1950 (50 U.S.C. Loans. 
App. 2092), as amended by section 3(b), is further amended by 
adding at the end thereof the following: 
"(cXD No such loan may be made under this section, except 
during periods of national emergency declared by the Congress or 
the President, unless the industrial resource shortfall which such 
loan is intended to correct has been identified in the Budget of the 
United States, or amendments thereto, submitted to the Congress, 
accompanied by a statement from the President demonstrating that 
the budget submission is in accordance with the provisions of subsec-
tion (bX2) of this section. 
"(2) Any such loan may be made only after 60 days have elapsed 
after such industrial resource shortfall has been identified pursuant 
to paragraph (1). 
"(3) If the making of any loan or loans to correct an industrial 
resource shortfall would cause the aggregate outstanding amount of 
all loans for such industrial resource shortfall to exceed $25,000,000, 
any such loan or loans may be made only if specifically authorized 
bylaw.". 
(c) Section 303(a) of the Defense Production Act of 1950 (50 U.S.C. President o
f U.S. 
App. 2093(a)), as amended by section 3(c), is further amended by 
adding at the end thereof the following: "Except during periods of 
national emergency declared by the Congress or the President, the 
President shall take no action under authority of this section unless 
the industrial resource shortfall which such action is intended to 
correct has been identified in the Budget of the United States, or 
amendments thereto, submitted to the Congress, accompanied by a 
statement from the President demonstrating that the budget sub-
mission is in accordance with the provisions of the preceding sen-
tence. Any such action may be taken only after 60 days have elapsed 
after such industrial resource shortfall has been identified pursuant 
to the preceding sentence. If the taking of any action or actions 
under authority of this section to correct an industrial resource 
shortfall would cause the aggregate outstanding amount of all such 
actions for such industrial resource shortfall to exceed $25,000,000, 
any such action or actions may be taken only if specifically author-
ized by law.". 
AUTHORIZATION OF APPROPRIATIONS 
SEC. 5. (a) The first sentence of section 711(a) of the Defense 
Production Act of 1950 (50 U.S.C. App. 2161(a)) is amended by 
inserting "and paragraph (4)" after "paragraph (2)". 
O
b
) Section 711(a) of the Defense Production Act of 1950 (50 U.S.C. 
App. 2161(a)) is amended by adding at the end thereof the following: 
"(4XA) There are authorized to be appropriated to carry out the 
provisions of section 303 not to exceed $100,000,000 for fiscal years 
1985 and 1986, except that not more than $25,000,000 is authorized 
to be appropriated for fiscal year 1985. 
"(B) The aggregate amount of loans, guarantees, purchase agree-
ments, and other actions under sections 301, 302, and 303 during 
fiscal years 1985 and 1986 may not exceed $100,000,000.". 
50 u s e app. 
2093. 
50 u s e app. 
2091-2093. 
98 STAT. 152 
PUBLIC LAW 98-265—APR. 17, 1984 
REPORTS 
SEC. 6. Title III of the Defense Production Act of 1950 (50 U.S.C. 
App. 2091 et seq.) is amended by adding at the end thereof the 
following: 
50 use app. 
"SEC. 309. Not later than 18 months after the date of the enact-
2099. 
ment of the Defense Production Act Amendments of 1984, and 
Ante. p. 149. 
annually thereafter, the President shall submit to the Committee on 
Banking, Finance and Urban Affairs of the House of Representa-
tives and the Committee on Banking, Housing, and Urban Affairs of 
the Senate, a report on the impact of offsets on the defense pre-
paredness, industrial competitiveness, employment, and trade of the 
United States. Each such report also shall include a discussion of 
bilateral and multilateral negotiations on offsets in international 
procurement and provide information on the tjrpes, terms, and 
magnitude of the offsets.". 
Approved April 17, 1984. 
'1i. %k> '. • 
^ T O ^ 
LEGISLATIVE HISTORY—S. 1852: 
HOUSE REPORT No. 98-651 (Comm. of Conference). 
CONGRESSIONAL RECORD: 
Vol. 129 (1983): Sept. 30, considered and passed Senate. 
Oct. 4, 6, considered and peissed House, amended. 
Oct. 7, Senate concurred in House amendment with an amend-
ment, 
-i 
Vol. 180 (1984): Apr. 5, Senate agreed to conference report. 
Apr, 10, House agreed to conference report.