The Trump administration is exploring an extraordinary rescue of Spirit Airlines, including possible use of the Defense Production Act, as the bankrupt budget carrier races to avoid liquidation. CBS News reports officials are discussing a $500 million government loan that would put Washington at the front of the bankruptcy line and give taxpayers warrants for up to 90% of the airline after it exits court protection.

The proposed legal hook is national defense. Under the plan being discussed, the Pentagon could tap Spirit’s excess capacity for troop transport, cargo movement or other missions, giving the administration a defense-based rationale for stepping into a failing airline. The White House says it is still exploring options and warned that any claimed structure of a deal should be treated as speculative until formally announced.

Spirit’s crisis has been building for years, but soaring jet fuel prices tied to the Iran war have pushed the company closer to the edge. The airline filed for Chapter 11 again in August after already restructuring once, and its latest plan aimed to slash debt and lease obligations from $7.4 billion to about $2 billion while shrinking the fleet and focusing on stronger routes.

The immediate pressure is cash. CBS reported Spirit missed an interest payment, triggering a possible default window with creditors, while Reuters reported the airline needs new financing or access to cash by the end of next week. If Washington moves ahead, it would be one of the most aggressive federal interventions in a U.S. airline in years, with Spirit kept alive long enough to emerge from bankruptcy and potentially be sold to another carrier.