White House mulls using Defense Production Act in Spirit Airlines takeover

Exclusive Politics White House mulls using Defense Production Act in Spirit Airlines takeover By Olivia Rinaldi, Olivia Rinaldi White House reporter Olivia Rinaldi is a White House reporter at CBS News. She covered President Trump's 2024 presidential campaign and was previously an associate producer for "CBS Evening News with Norah O'Donnell" and a broadcast associate for "Face the Nation." She is based in Washington, D.C. Read Full Bio Olivia Rinaldi, Jennifer Jacobs Jennifer Jacobs Senior White House reporter Jennifer Jacobs is a senior White House reporter at CBS News. Read Full Bio Jennifer Jacobs April 24, 2026 / 3:39 PM EDT / CBS News Add CBS News on Google The Trump administration is exploring using the Defense Production Act as part of a strategy to save the beleaguered Spirit Airlines, according to U.S. officials familiar with the discussions. President Trump is open to some type of federal action, several sources told CBS News, and he has said publicly he'd "do it to save the jobs."Spirit has declared bankruptcy twice in the past two years, after the Department of Justice blocked a merger with JetBlue during the Biden administration. The Iran war has been driving up jet fuel costs for all airlines and earlier this month, creditors expressed serious doubts Spirit could remain viable.The Defense Production Act is an emergency power typically used to compel private sector companies to prioritize government contracts and increase supplies of critical goods.It also includes providing loan authority to private firms for national defense, potentially a lifeline for the airline.The strategy would be subject to approval from Spirit's creditors, two of the officials told CBS News.The Office of Management and Budget has explored what a federal bailout of Spirit Airlines would look like and has discussed possibilities that would include Commerce Department and Pentagon involvement. The government would lend Spirit $500 million at a reasonable rate interest, and b...