The U.S. Department of Defense announced today that it will dedicate $100 million authorized by the CARES Act to boost medtech and pharmaceutical manufacturing in the U.S.
Working with DOD, the U.S. International Development Finance Corporation (DFC) launched a request for proposals from companies seeking financing under the Defense Production Act, which prioritizes government orders amid a war or national crisis.
The Trump administration has invoked the Korean-War-era law to require certain manufacturers to produce critically needed ventilators and personal protective equipment during the COVID-19 pandemic. For example, the president ordered General Motors in March to start producing ventilators for COVID-19 patients. In April, the defense department awarded $133 million in N95 respirator contracts to 3M (NYSE:MMM), Owens & Minor (NYSE:OMI) and Honeywell (NYSE:HON) under the act.