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The act gives the federal government broad authority to direct private companies to meet the needs of the national defense.

Over the decades, the law's powers have been understood to encompass not only times of war but also domestic emergency preparedness and recovery from terrorist attacks and natural disasters.

The act authorizes the president to require companies to prioritize government contracts and orders seen as necessary for the national defense, with the goal of ensuring that the private sector is producing enough goods needed to meet a war effort or other national emergency.

It also authorizes the president to use loans, direct purchases and other incentives to boost the production of critical goods and essential materials.

Other provisions authorize the federal government to establish voluntary agreements with private industry and to block foreign mergers and acquisitions seen as harmful to national security.

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