WASHINGTON DC – The Biden administration’s efforts to revive U.S. manufacturing appears to be succeeding, with some business sectors plowing in almost 20 times more investment in new U.S. manufacturing projects than only a few years ago
Joe Biden made bringing manufacturing jobs and investment back to the U.S. a cornerstone of his presidential campaign in 2020. While he has yet to formally announce a widely-expected reelection bid, the president will likely lean heavily into two major legislative wins during his term that unlocked billions to support new U.S. manufacturing—last year’s Inflation Reduction Act and the CHIPS and Science Act.
Together, the two landmark acts inject over $400 billion into clean energy technology and semiconductor manufacturing in the form of government incentives and subsidies, as well as create thousands of new jobs. It’s been less than a year since the two packages were passed, but the fresh funds appear to be accomplishing some of Biden’s goals already.
U.S. companies have committed over $200 billion to new manufacturing projects since the bills passed, according to a Financial Times analysis Sunday. The largest investment has been in clean tech and semiconductors, where new financing is almost double what it was in 2021 and nearly 20 times above 2019 levels. The number of large projects that have attracted more than $1 billion has also exploded, up from four in 2019 to 31 currently, the FT found.
The key stipulation in the legislation that has attracted more investment is that manufacturing must be done in the U.S., a ruling that hasn’t gone down well with traditional allies including France and South Korea, which have criticized the Biden administration for advancing a protectionist agenda. Some Republicans have also slammed aspects of the large spending packages, including the IRA’s $80 billion provision to strengthen the IRS, and criticized the CHIPS Act for being “woke,” because it prioritizes funding for companies that provide child care and use labor union agreements for construction.
Despite the backlash, Biden and Democrat officials have championed the growth of U.S., manufacturing jobs, recently comparing it favorably to job growth under former President Donald Trump.
“The last Administration talked a lot about bringing jobs back to America, but failed to take real action. President Biden is taking action and delivering results—creating good-paying manufacturing jobs at home,” Jeff Zaints, the White House’s chief of staff, said of the recent jobs boom in a statement to Fortune, adding that the government’s current leadership is eying more growth in the future.
