President Donald Trump announced plans on October 22, 2026, to provide up to $150 million for domestic refinery production, storage and logistics through the Defense Production Act. The U.S. refinery funding initiative is intended to expand fuel supplies, but project selection remains ongoing and no award to Delek US Holdings was identified in the announcement.

Key Takeaways

  • The proposed funding ceiling is $150 million, not a completed allocation to named refineries.
  • The Energy Department expects the initiative to add millions of gallons per day to refining output.
  • Project recipients, individual funding amounts and completion schedules have not been announced.

Table of Contents

U.S. refinery funding targets production and logistics

The Energy Department’s refinery funding announcement outlines plans to use Defense Production Act Title III authority to expand petroleum production, storage and logistics at refineries across the United States. The initiative covers gasoline, diesel, jet fuel and other petroleum products.

The scope extends beyond processing crude oil: storage and logistics are also eligible areas of support. That makes the program an effort to strengthen the fuel supply chain rather than solely to add refining equipment.

The department said the investment would support energy infrastructure critical to national defense. It also cited $1 billion appropriated under the Working Families Tax Cuts for energy-related projects deemed critical to national security.

ItemDetails
Announcement dateOctober 22, 2026
Funding authorityDefense Production Act Title III
National-defense determinationPresidential Determination No. 2026-11 identifies domestic petroleum production, refining and logistics capacity as essential to national defense.

Output gains remain an expectation, not a result

The Energy Department expects the funding to increase U.S. refining output by millions of gallons per day. It did not provide a more precise production target, a breakdown by fuel type or a timetable for bringing additional output online.

The administration described stronger fuel supplies and lower prices as intended benefits. Those are policy objectives, not demonstrated outcomes: the announcement does not establish how much retail fuel prices might change or when any effect could occur.

Delek is not a confirmed recipient

The announcement does not name Delek US Holdings or identify an award for any of its Texas facilities. It therefore does not establish a company-specific funding benefit or a funded expansion project.

The department said the selection process was ongoing and that selections would be announced in the near future. Until recipients and project terms are disclosed, the initiative remains a sector-level funding plan rather than confirmed financial support for a particular refiner.

Conclusion

The next confirmed step is the announcement of project selections, for which the Energy Department gave no specific date. Those disclosures will clarify which facilities receive support and how the planned funding translates into additional fuel capacity.

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