(CNN) The White House is preparing to use the Defense Production Act to give a Maine medical supplies company federal funding so it can ramp up its production of swabs needed for coronavirus testing.

President Donald Trump announced Sunday he will compel a US company to make swabs under the Defense Production Act, but Peter Navarro, his trade adviser who Trump tapped to coordinate DPA use, clarified to CNN Monday that the White House plans to use the act to give Puritan Medical Supplies federal funding to boost production.

"Title III of the DPA has been used frequently by the Trump administration over the last three years to provide funding for companies essential to our industrial base and critical to national security. In the case referenced by President Trump, (the Defense Department) is finalizing negotiations under DPA Title III with Puritan, a small company in Guilford, Maine. With DPA support, Puritan will be able to increase its industrial capacity in machine tooling, people, and facilities with the broader goal of increasing nasal swab production from 3 million to more than 20 million within 30 days of the contract award," Navarro told CNN in a statement.

The administration has not finalized the DPA use yet, and it's not clear how much funding the company will get.

Navarro noted that Trump has employed the DPA in different ways during the pandemic.

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