A bill to amend the Defense Production Act of 1950 to include synthetic fuels which may be used as fuels under title III.

Amends the Defense Production Act of 1950 to authorize the President, in order to carry out the purposes of such Act, to make provision for purchases of or commitments to purchase synthetic fuels which may be used as fuel for Government use or resale and to encourage the development and production of such fuels. Stipulates that the President's authority under this Act shall continue until June 30, 1990.

Authorizes the President to make subsidy payments for domestically produced supplies of strategic or critical materials under specified circumstances to insure that necessary high-cost sources are continued or that maximum production or supply is maintained at stable prices.

Authorizes the President to install additional equipment, facilities, processes, or improvements at United States industrial facilities and to install Government-owned equipment in private industrial facilities if such actions would aid the national defense.

Stipulates that the total obligations which may be made under this Act without Congressional approval shall not exceed $2,000,000,000.