FACT SHEET: Biden Administration Secures Voluntary Commitments from Leading Artificial Intelligence Companies to Manage the Risks Posed by AI

Voluntary commitments – underscoring safety, security, and trust – mark a critical step toward developing responsible AI
 
Biden-Harris Administration will continue to take decisive action by developing an Executive Order and pursuing bipartisan legislation to keep Americans safe

Since taking office, President Biden, Vice President Harris, and the entire Biden-Harris Administration have moved with urgency to seize the tremendous promise and manage the risks posed by Artificial Intelligence (AI) and to protect Americans’ rights and safety. As part of this commitment, President Biden is convening seven leading AI companies at the White House today – Amazon, Anthropic, Google, Inflection, Meta, Microsoft, and OpenAI – to announce that the Biden-Harris Administration has secured voluntary commitments from these companies to help move toward safe, secure, and transparent development of AI technology.   
 
Companies that are developing these emerging technologies have a responsibility to ensure their products are safe. To make the most of AI’s potential, the Biden-Harris Administration is encouraging this industry to uphold the highest standards to ensure that innovation doesn’t come at the expense of Americans’ rights and safety.
 
These commitments, which the companies have chosen to undertake immediately, underscore three principles that must be fundamental to the future of AI – safety, security, and trust – and mark a critical step toward developing responsible AI. As the pace of innovation continues to accelerate, the Biden-Harris Administration will continue to remind these companies of their responsibilities and take decisive action to keep Americans safe.
 
There is much more work underway. The Biden-Harris Administration is currently developing an executive order and will pursue bipartisan legislation to help America lead the way in responsible innovation.

The Biden Administration has secured voluntary commitments from seven top technology companies that they will undertake standards and procedures to responsibly develop AI (Artificial Intelligence) to insure safety, security, and trust © Karen Rubin/news-photos-features.com

In remarks announcing the commitments, President Biden said, “We’ll see more technology change in the next 10 years, or even in the next few years, than we’ve seen in the last 50 years.  That has been an astounding revelation to me, quite frankly.  Artificial intelligence is going to transform the lives of people around the world.
 
“The group here will be critical in shepherding that innovation with responsibility and safety by design to earn the trust of Americans.  And, quite frankly, as I met with world leaders, all the G7 is focusing on the same thing.
 
“Social media has shown us the harm that powerful technology can do without the right safeguards in place.
 
“And I’ve said at the State of the Union that Congress needs to pass bipartisan legislation to impose strict limits on personal data collection, ban targeted advertisements to kids, require companies to put health and safety first.
 
“But we must be clear-eyed and vigilant about the threats emerging — of emerging technologies that can pose — don’t have to, but can pose — to our democracy and our values.  
 
“Americans are seeing how advanced artificial intelligence and the pace of innovation have the power to disrupt jobs and industries.
 
“These commitments — these commitments are a promising step, but the — we have a lot more work to do together. 

“Realizing the promise of AI by managing the risk is going to require some new laws, regulations, and oversight.”
 
These seven leading AI companies are committing to:
 
Ensuring Products are Safe Before Introducing Them to the Public

  • The companies commit to internal and external security testing of their AI systems before their release. This testing, which will be carried out in part by independent experts, guards against some of the most significant sources of AI risks, such as biosecurity and cybersecurity, as well as its broader societal effects.
  • The companies commit to sharing information across the industry and with governments, civil society, and academia on managing AI risks. This includes best practices for safety, information on attempts to circumvent safeguards, and technical collaboration.

Building Systems that Put Security First

  • The companies commit to investing in cybersecurity and insider threat safeguards to protect proprietary and unreleased model weights. These model weights are the most essential part of an AI system, and the companies agree that it is vital that the model weights be released only when intended and when security risks are considered.
  • The companies commit to facilitating third-party discovery and reporting of vulnerabilities in their AI systems. Some issues may persist even after an AI system is released and a robust reporting mechanism enables them to be found and fixed quickly.

Earning the Public’s Trust

  • The companies commit to developing robust technical mechanisms to ensure that users know when content is AI generated, such as a watermarking system. This action enables creativity with AI to flourish but reduces the dangers of fraud and deception.
  • The companies commit to publicly reporting their AI systems’ capabilities, limitations, and areas of appropriate and inappropriate use. This report will cover both security risks and societal risks, such as the effects on fairness and bias.
  • The companies commit to prioritizing research on the societal risks that AI systems can pose, including on avoiding harmful bias and discrimination, and protecting privacy. The track record of AI shows the insidiousness and prevalence of these dangers, and the companies commit to rolling out AI that mitigates them.   
  • The companies commit to develop and deploy advanced AI systems to help address society’s greatest challenges. From cancer prevention to mitigating climate change to so much in between, AI—if properly managed—can contribute enormously to the prosperity, equality, and security of all.

As we advance this agenda at home, the Administration will work with allies and partners to establish a strong international framework to govern the development and use of AI. It has already consulted on the voluntary commitments with Australia, Brazil, Canada, Chile, France, Germany, India, Israel, Italy, Japan, Kenya, Mexico, the Netherlands, New Zealand, Nigeria, the Philippines, Singapore, South Korea, the UAE, and the UK. The United States seeks to ensure that these commitments support and complement Japan’s leadership of the G-7 Hiroshima Process—as a critical forum for developing shared principles for the governance of AI—as well as the United Kingdom’s leadership in hosting a Summit on AI Safety, and India’s leadership as Chair of the Global Partnership on AI. 
 
This announcement is part of a broader commitment by the Biden-Harris Administration to ensure AI is developed safely and responsibly, and to protect Americans from harm and discrimination.

  • Earlier this month, Vice President Harris convened consumer protection, labor, and civil rights leaders to discuss risks related to AI and reaffirm the Biden-Harris Administration’s commitment to protecting the American public from harm and discrimination.
     
  • Last month, President Biden met with top experts and researchers in San Francisco as part of his commitment to seizing the opportunities and managing the risks posed by AI, building on the President’s ongoing engagement with leading AI experts.
     
  • In May, the President and Vice President convened the CEOs of four American companies at the forefront of AI innovation—Google, Anthropic, Microsoft, and OpenAI—to underscore their responsibility and emphasize the importance of driving responsible, trustworthy, and ethical innovation with safeguards that mitigate risks and potential harms to individuals and our society. At the companies’ request, the White House hosted a subsequent meeting focused on cybersecurity threats and best practices.
     
  • The Biden-Harris Administration published a landmark Blueprint for an AI Bill of Rights to safeguard Americans’ rights and safety, and U.S. government agencies have ramped up their efforts to protect Americans from the risks posed by AI, including through preventing algorithmic bias in home valuation and leveraging existing enforcement authorities to protect people from unlawful bias, discrimination, and other harmful outcomes.
     
  • President Biden signed an Executive Order that directs federal agencies to root out bias in the design and use of new technologies, including AI, and to protect the public from algorithmic discrimination.
     
  • Earlier this year, the National Science Foundation announced a $140 million investment to establish seven new National AI Research Institutes, bringing the total to 25 institutions across the country.
     
  • The Biden-Harris Administration has also released a National AI R&D Strategic Plan to advance responsible AI.
     
  • The Office of Management and Budget will soon release draft policy guidance for federal agencies to ensure the development, procurement, and use of AI systems is centered around safeguarding the American people’s rights and safety.

FACT SHEET: Biden Administration Launches Office of Pandemic Preparedness and Response Policy

More than one million Americans died of COVID, millions more are suffering long-COVID; it is estimated that 70 percent died needlessly, avoidably, while Biden’s swift actions to set up a comprehensive vaccination-delivery program (free tests, free masks, free vaccinations), saved 2 million lives. As part of President Biden’s commitment to ensure that our country is more prepared for a pandemic than we were when he took office, the Administration is standing up the Office of Pandemic Preparedness and Response Policy (OPPR). This will be a permanent office in the Executive Office of the President (EOP) charged with leading, coordinating, and implementing actions related to preparedness for, and response to, known and unknown biological threats or pathogens that could lead to a pandemic or to significant public health-related disruptions in the United States. © Karen Rubin/news-photos-features.com

A valid concern Americans should hold is that public health has been so politicized, so weaponized that leaders on all levels of government – federal, state, and local  – who are responsible for the welfare of their constituents, along with the weakening of their ability to take action to protect public health by the radical rightwing extremist judiciary put into place by McConnell and Trump, that we will not be informed when there is a new threat, that they will take action to quarantine, mandate masks and vaccinations to prevent hospital systems from being overwhelmed, and certainly, that concern that there won’t be the resources, the expertise, the means, infrastructure or the fortitude to protect us from the next pandemic. And the next pandemic is certain to take place, not in 100 years, but pushed forward by the changes to the ecosystem because of human-caused climate change.

More than one million died of COVID, millions more are suffering long-COVID; it is estimated that 70 percent died needlessly, avoidably, while Biden’s swift actions to set up a comprehensive vaccination-delivery program (free tests, free masks, free vaccinations), saved 2 million lives. With this in mind, the Biden-Harris Administration is taking steps, setting up the mechanisms to obtain vaccines, treatments and tests – while Florida Governor and presidential wannabe Ron DeSantis has actually made it illegal for Floridians to have a public response to a pandemic and Congressional Republicans show no interest whatsoever in allocating the funds to save lives. (Trump had dismantled the pandemic response infrastructure set up by the Obama Administration. Here is a fact sheet form the White House on its launch of Office of Pandemic Preparedness and Response Policy: –Karen Rubin/news-photos-features.com

The Biden-Harris Administration has made historic progress on our nation’s ability to manage COVID-19 so that it no longer meaningfully disrupts the way we live our lives. Under President Biden’s leadership, the Administration has taken significant steps to ensure all individuals have continued access to lifesaving protections such as vaccines, treatments, and tests, and that the nation is well prepared to manage the risks of COVID-19 or other causes of potential pandemics in the future.
 
As part of the President’s commitment to ensure that our country is more prepared for a pandemic than we were when he took office, the Administration is standing up the Office of Pandemic Preparedness and Response Policy (OPPR). This will be a permanent office in the Executive Office of the President (EOP) charged with leading, coordinating, and implementing actions related to preparedness for, and response to, known and unknown biological threats or pathogens that could lead to a pandemic or to significant public health-related disruptions in the United States. OPPR will take over the duties of the current COVID-19 Response Team and Mpox Team at the White House and will continue to coordinate and develop policies and priorities related to pandemic preparedness and response.
 
To lead this work, the President announced that Major General (ret) Paul Friedrichs will serve as the inaugural Director of OPPR and Principal Advisor on Pandemic Preparedness and Response as of August 7, 2023.  Maj. Gen. (ret) Friedrichs’ unparalleled experience makes him the right person to lead this office. He is currently Special Assistant to the President and Senior Director for Global Health Security and Biodefense at the National Security Council (NSC). Maj. Gen. (ret) Friedrichs previously served as Joint Staff Surgeon at the Pentagon, where he coordinated all issues related to health services, provided medical advice to the Chairman of the Joint Chiefs of Staff and served as medical adviser to the Department of Defense (DoD) Covid-19 Task Force. 
 
The Office of Pandemic Preparedness and Response Policy will:
 
Coordinate the Administration’s domestic response to public health threats that have pandemic potential, or may cause significant disruption, and strengthen domestic pandemic preparedness. This includes ongoing work to address potential public health outbreaks and threats from COVID-19, Mpox, polio, avian and human influenza, and RSV.
 
Drive and coordinate federal science and technology efforts related to pandemic preparedness. Specifically, OPPR will oversee efforts to develop, manufacture, and procure the next generation of medical countermeasures, including leveraging emerging technologies and working with HHS on next generation vaccines and treatments for COVID-19 and other public health threats. During the height of the pandemic, the Biden-Harris Administration made historic investments in COVID-19 vaccines, tests, and treatments that were made widely available. OPPR will continue to leverage these investments as it drives future progress in combatting COVID-19 and other public health threats.
 
Develop and provide periodic reports to Congress. As required by statute, OPPR will develop and provide to Congress a biennial Preparedness Review and Report and Preparedness Outlook Report every five years.
 
Major General (ret) Paul Friedrichs, Inaugural Director of OPPR and Principal Advisor on Pandemic Preparedness and Response
 
Major General Friedrichs is currently Special Assistant to the President and Senior Director for Global Health Security and Biodefense at the National Security Council (NSC). Prior to joining the NSC, Dr. Friedrichs most recently served as the Joint Staff Surgeon and the medical advisor to the Department of Defense (DoD) COVID-19 Task Force. Throughout his career he has worked closely with Federal, State, Tribal, local, and territorial government partners, as well as industry and academic counterparts and has been active in multiple professional medical societies. Dr. Friedrichs has also overseen the DoD global patient evacuation system, supporting global medical care and numerous interagency domestic and global disaster responses. He led the DoD Task Force which developed plans to implement high reliability medical principles across DoD and stood up the Air Force’s first medical analytics capabilities. Over the course of his 37-year career, he has led military hospitals and regional and global health care systems, published multiple medical papers, and consistently sought opportunities to partner with colleagues to improve health care delivery and preparedness. As the United States’ representative to the North Atlantic Treaty Organization Committee of Military Medical Chiefs, he worked closely with many of America’s closest allies and partners throughout the pandemic and in developing medical support to the Ukrainian military.
 
Dr. Friedrichs is a board-certified physician who has cared for hundreds of patients in combat and managed broad domestic and global public health threats. He has spent all of his career in public service, having first received his commission through Reserve Officer Training Corps in 1986 and rising to Major General in 2023.

Bidenomics Is Working, Growing the Economy from the Middle Out and Bottom Up—Not the Top Down

Freight Train, Rochester New York. The Biden-Harris Investing in America agenda is rebuilding our infrastructure, including our roads and bridges, high-speed internet capacity, ports, and airports. This infrastructure is the necessary foundation for durable and shared economic growth. Thanks to the Bipartisan Infrastructure Law, 35,000 new projects have been awarded funding in communities all across the country. By requiring Made-in-America products when using federal funding to rebuild infrastructure, President Biden is not only investing in our country’s roads and bridges, but also a strong domestic manufacturing base © Karen Rubin/news-photos-features.com

The June 2023 jobs report showed 497,000 more jobs created last month (twice the number anticipated) and wages up 6.4% – both indications of a strong, resilient economy and that ordinary, working Americans are doing well. Nonetheless, the stock market fell sharply over fears the Federal Reserve would continue to hike interest rates in order to tame the demon inflation by causing the labor market to weaken and take the steam out of wage growth. But the stock market is not the economy Americans live every day.

The Bidenomics agenda is driving investments in communities across the country – like billions of dollars for states to connect every American to high-speed internet, investments to rebuild roads and bridges, and investments to build a clean energy economy, boost domestic manufacturing, create jobs and lower costs for the American people.

Meanwhile, Republicans who voted against the historic investments of the Bipartisan Infrastructure Act and all efforts by the Biden Administration to promote a sustainable, resilient economic recovery that benefits all Americans, are actually, cynically, hypocritically taking credit for the marvelous infrastructure improvements like broadband and bridges, in their communities.

Despite GOP “voting no but still wanting the dough,” the Biden-Harris Administration is continuing to deliver investments, lower costs, and opportunity to hardworking Americans in every corner of the country.

In remarks in Chicago on June 28, President Biden declared, “Today, the U.S. has had the highest economic growth among the world’s leading economies since the pandemic. We’ve added over 13 million jobs, more jobs in two years than any President has added in a four-year term.

“And folks, that’s no accident. That’s Bidenomics in action.
 
“Bidenomics is about building the economy from the middle out and bottom up – not the top down by making three fundamental changes.

First, making smart investments  in  America.  Second, educating and empowering American workers to grow the middle class. And third, promoting competition to lower costs and help small businesses.”

The White House provided this fact sheet outlining how Bidenomics is indeed working, giving the U.S. the strongest economy among the G7, and growing the economy sustainably, from the middle out and the bottom up, rather than the top-down “trickle down” con the Republicans have been hawking since Reagan.—Karen Rubin/news-photos-features.com

President Biden and Vice President Harris came into office determined to rebuild our economy from the middle out and the bottom up, not the top down—and that strategy is working. Even as they faced an immediate economic and public health crisis—with a raging pandemic, elevated unemployment, snarled supply chains, and hundreds of thousands of small businesses at risk of shuttering—the President and Vice President understood that it wouldn’t be enough to simply go back to the economy we had before the pandemic. That economy was saddled with longstanding challenges that held America back—including rising inequality and disinvestment from communities across the country.
 
President Biden recognized that some of those challenges were rooted in a failed trickle-down theory that supported slashing taxes for the wealthy and big corporations, shrinking public investment in critical priorities like infrastructure and education, and failing to safeguard market competition.

The President took office determined to move beyond these failed trickle-down policies and fundamentally change the economic direction of our country. His plan—Bidenomics—is rooted in the recognition that the best way to grow the economy is from the middle out and the bottom up. It’s an economic vision centered around three key pillars:

  • Making smart public investments in America
  • Empowering and educating workers to grow the middle class
  • Promoting competition to lower costs and help entrepreneurs and small businesses thrive

While our work isn’t finished, Bidenomics is already delivering for the American people. Our economy has added more than 13 million jobs—including nearly 800,000 manufacturing jobs—and we’ve unleashed a manufacturing and clean energy boom. There were more than 10 million applications for new small businesses filed in 2021 and 2022—the strongest two years on record. America has seen the strongest growth since the pandemic of any leading economy in the world. Inflation has fallen for 11 straight months and has come down by more than half. And we have done it all while responsibly reducing the deficit.
 
None of this progress was an accident or inevitable—it has been a direct result of Bidenomics. And rather than taking us back to the failed trickle-down policies of the past, President Biden is committed to finishing the job and continuing to build an economy that finally works for working families—with better jobs, lower costs, and more opportunity.
 
Building More in America by Making Smart Public Investments
 
When President Biden came into office, public investment as a share of the economy had fallen from 7% in the 1960s to half that. A core tenet of Bidenomics is that targeted public investment can attract more private sector investment, rather than crowd it out. This is particularly true in sectors that are central to the long-term economic and national security interests of the United States—from improving our infrastructure, to semiconductors, to investing in clean energy and climate security.

The Biden-Harris Investing in America agenda is rebuilding our infrastructure, including our roads and bridges, high-speed internet capacity, ports, and airports. This infrastructure is the necessary foundation for durable and shared economic growth. Thanks to the Bipartisan Infrastructure Law, 35,000 new projects have been awarded funding in communities all across the country. By requiring Made-in-America products when using federal funding to rebuild infrastructure, President Biden is not only investing in our country’s roads and bridges, but also a strong domestic manufacturing base.
 
The President’s agenda is also investing in key industries that are critical to our national security and economic security, like producing more semiconductors in America. And it is investing in accelerating the clean energy economy to help achieve our climate goals, working with our global partners. This approach is creating millions of good-paying jobs, advancing American leadership in innovating next-generation technologies, and delivering for workers and communities. The President’s agenda is strengthening our clean energy supply chains by spurring new and expanded U.S. factories, including more than 150 battery plants and 50 solar plants already announced. In all, we’ve seen $490 billion in private investment commitments in 21st century industries since the President took office, and inflation-adjusted manufacturing construction spending has grown by nearly 100% in just two years. New data released just today shows the clean energy workforce added nearly 300,000 jobs in 2022 and clean energy jobs grew in every state in America, in part because of the investments in clean energy and manufacturing by the Biden-Harris Administration.

Empowering and Educating Workers to Grow the Middle Class
 
Bidenomics also recognizes that the benefits of a growing economy are only broadly shared when policies are designed to promote and empower workers. When the President took office, independent experts like the Congressional Budget Office were projecting that the unemployment rate wouldn’t fall below 4% until the end of 2025. But under Bidenomics, the unemployment rate fell below 4% four years before expectations and has stayed there for the past 18 months.
 
We’ve also seen record lows in unemployment for workers who have often been left behind in previous recoveries: with record low unemployment rates achieved under this Administration for African AmericansHispanic Americans, and people with disabilities—and a 70-year low for women. This strong labor market recovery has also led to better pay and working conditions. Inflation-adjusted income is up 3.5% since the President took office, and low-wage workers have seen the largest wage gains over the last year. Job satisfaction reached its highest level on record last year. And the prospect of good jobs has drawn people off the sidelines and into the workforce. In fact, the share of working-age Americans in the workforce hasn’t been higher in more than 20 years. This strong recovery will also provide durable benefits for years to come, in part by preventing the labor market scarring that sticks with workers for generations after a recession.

Empowering workers also means educating America’s workers—those with and without a four-year degree. That’s why the Biden-Harris Administration is investing more in registered apprenticeships and career technical education programs than any previous Administration and continuing to fight for free universal pre-K and free community college.
 
And the President believes a critical tool for empowering workers is making it easier to join a union. The President is addressing a decades-long decline in unionization by supporting project labor agreements and collective bargaining. He asked the Vice President to lead the White House Task Force on Worker Organizing and Empowerment to drive action across the Administration to empower workers and support their right to join or form a union. Support for unions is the highest it’s been in more than half a century, and the labor movement is expanding to new companies and industries.

Promoting Competition to Lower Costs and Help Entrepreneurs and Small Businesses Thrive
 
Bidenomics recognizes that for markets to function—and for workers and consumers to benefit—our economy requires healthy competition across sectors. After three-quarters of U.S. industries grew more concentrated in the two decades before President Biden took office, he understood that we needed a different approach. More competition means lower costs for consumers and higher wages for workers. And since taking office, the President has been delivering for the American people to lower prices, protect workers, and increase competition across the economy.
 
When the President took office, he signed an historic Executive Order on Competition, which “commits the federal government to full and aggressive enforcement of our antitrust laws.” That order identified 72 specific initiatives across government to promote competition—and it is paying off. In addition to enforcement, the Administration is lowering costs for consumers and creating opportunities for innovative new products to come to market—including from the millions of new small businesses around the country that have started during the Biden-Harris Administration.
 
For example, the Administration changed the rules so that hearing aids can be sold over-the-counter, instead of just via prescription. Previously, hearings aids could cost up to $5,000 per pair, but Americans can now get them for a few hundred dollars at a local convenience or electronics store. President Biden has signed legislation into law that will lower prescription drug costs for seniors and save taxpayers $160 billion over the next decade by giving Medicare the authority to negotiate lower prescription drug prices. The Administration is also fighting to end junk fees—hidden charges that cost Americans’ tens of billions per year and rob the marketplace of the kind of transparency that is necessary for real competition. And the Administration is working toward cracking down on noncompete agreements, which currently limit as many as 30 million workers from switching to a new job in the same field.

Reducing the Deficit and Making the Wealthy and Big Corporations Pay Their Fair Share
 
President Biden has pursued this economic vision in a fiscally responsible way—in stark contrast to the Congressional Republican approach. His predecessor enacted the latest version of trickle-down and the result was predictable: his tax giveaway added trillions to deficits, never trickled down to workers, and led to continued offshoring of jobs and profits. In recent weeks, House Republicans have doubled down on this approach—rolling out proposals to enact massive tax cuts for large corporations, including oil companies that made $200 billion in profit last year, while setting the stage for trillions in tax cuts skewed to the wealthiest Americans, delivering a $175,000 average annual tax cut to the top 0.1% (incomes over $4 million). Their view of “fiscal responsibility” is massive cuts to programs that millions of Americans count on, with the Republican Study Committee—which speaks for more than three quarters of House Republicans—recently releasing a plan to raise the Social Security retirement age to 69, eliminate the Medicare prescription drug savings that President Biden has signed into law, raise premiums for seniors on Medicare, and slash Medicaid, the Affordable Care Act, food assistance, and Pell Grants.
 
President Biden believes in a fundamentally different approach. Under Bidenomics, he has proven that we can make smart investments in the American people while reducing the deficit by ensuring the wealthy and large corporations pay their fair share in taxes, closing wasteful tax loopholes, and slashing wasteful spending on special interests.

During his first two years, the President presided over $1.7 trillion in deficit reduction—a larger reduction than under any other President in American history. He has signed legislation into law to reduce the deficit by more than $1 trillion over the next decade, including by ensuring the wealthiest Americans and largest corporations pay their fair share, cracking down on wealthy tax cheats, and lowering prescription drug costs for the American people by cutting wasteful giveaways to Big Pharma. And his Budget would reduce the deficit by another more than $2.5 trillion over the next decade with additional reforms, including requiring the wealthiest Americans and the largest multinational corporations to pay at least the tax rates that many middle-class families do.
 
Unlike House Republicans—whose plans would harm hard-working families—the President has proposed cutting taxes for working people and families with children by almost $800 billion over the next 10 years, including cutting taxes by an average of $2,600 for 39 million families that include 62 million children by expanding the Child Tax Credit, cutting taxes by an average of $800 for 19 million working individuals or couples by expanding the Earned Income Tax Credit, and continuing Premium Tax Credit plus-ups that are cutting health care premiums by an average of $800 for nearly 15 million people.

FACT SHEET: Biden Issues Executive Order on Strengthening Access to Contraception

“My Body My Business.” New Yorkers protest for women’s reproductive freedom © Karen Rubin/news-photos-features.com

On the one-year anniversary since the radical rightwing majority on the Supreme Court overturned women’s constitutional rights to reproductive freedom under Roe v. Wade, President Biden issued an Executive Order on Strengthening Access to Affordable, High-Quality Contraception and Family Planning Services. This was the third Executive Order on reproductive health care access that the President has signed since the Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization, and the first focused specifically on protecting and expanding access to contraception. “Contraception is an essential component of reproductive health care that has only become more important in the wake of Dobbs and the ensuing crisis in women’s access to health care,” the White House stated in a fact sheet detailing the Executive Order.

There is concern that just as the anti-reproductive freedom groups have gone after medication abortion, they may also go after contraception, something that Justice Clarence Thomas suggested he was amenable to do in declaring prior decisions open to “reconsideration.”

Meanwhile, the Federal Drug Administration gave approval for the first over-the-counter sale of a contraceptive pill without a doctor’s prescription. – Karen Rubin/news-photos-features.com

Through today’s Executive Order, the President announced actions to:

  • Improve Contraception Access and Affordability for Women with Private Health Insurance.  The Executive Order directs the Secretaries of the Treasury, Labor, and Health and Human Services (HHS) to consider new guidance to ensure that private health insurance under the Affordable Care Act covers all Food and Drug Administration-approved, -granted, or -cleared contraceptives without cost sharing and to streamline the process for obtaining care women need and want. This action will build on the progress already made under the Affordable Care Act by further reducing barriers that women face in accessing contraception prescribed by their provider.
    • Promote Increased Access to Over-the-Counter Contraception. The Executive Order directs the Secretaries of the Treasury, Labor, and HHS to consider new actions to improve access to affordable over-the-counter contraception, including emergency contraception. These actions could include convening pharmacies, employers, and insurers to discuss opportunities to expand access to affordable over-the-counter-contraception; identifying promising practices regarding the coverage of over-the-counter contraception at no cost to patients; and providing guidance to support seamless coverage of over-the-counter contraception.
       
    • Support Family Planning Services and Supplies through the Medicaid Program. The Executive Order directs the Secretary of HHS to consider new actions that expand access to affordable family planning services and supplies across the Medicaid program—such as sharing best practices for State Medicaid programs on providing high-quality family planning services and supplies, including through Medicaid managed care.
       
    • Improve the Coverage of Contraception through the Medicare Program. To improve coverage and payment for contraceptives for Medicare beneficiaries, the Executive Order directs the Secretary of HHS to consider new actions to strengthen the coverage of contraception through Medicare Advantage and Medicare Part D plans. This action will help ensure that Medicare beneficiaries, especially women of reproductive age with disabilities, can access contraception without unnecessary barriers.
       
    • Support Access to Contraception for Service Members, Veterans, and Federal Employees. The Executive Order directs the Secretary of Defense, the Secretary of Veterans Affairs, and the Director of the Office of Personnel Management to consider new actions to ensure robust coverage of contraception for Service members, veterans, and Federal employees and ensure that they and their families understand how to access these benefits. These actions will build on the steps that these agencies have already taken to bolster access to contraception for those they serve.
       
    • Bolster Contraception Access Across Federally-Supported Health Care Programs. The Executive Order directs the Secretary of HHS to consider encouraging Federally-supported health care and human services entities—such as Title X family planning clinics, community health centers, and the Indian Health Service—to expand the availability and quality of contraception access for those they serve. Actions could include issuing new guidance, technical assistance, and training resources so that providers in these programs understand their obligations under Federal law, including to provide culturally and linguistically appropriate family planning services.
       
    • Support Access to Affordable Contraception for Employees and College Students. The Executive Order directs the Secretary of Labor to identify and share best practices for employers and insurers in making affordable, high-quality contraception available to employees. To help bolster access for college and university students, the Executive Order directs the Secretary of Education to convene institutions of higher education to share best practices and ways to make sure that students understand their options for accessing contraception.
       
    • Promote Research and Data Analysis on Contraception Access.  To document the gaps and disparities in contraception access as well as the benefits of comprehensive coverage, the Executive Order directs the Secretary of HHS to support research, data collection, and data analysis on contraception access and family planning services.

The announcements build on actions that the Biden-Harris Administration has already taken to protect access to contraception, including in response to two prior Executive Orders directing actions to safeguard access to reproductive health care services. The Administration has taken action to:

  • Clarify Protections for Women with Private Health Insurance. Under the Affordable Care Act, most private health plans must provide contraception and family planning counseling with no out-of-pocket costs. The Departments of the Treasury, Labor, and HHS convened a meeting with health insurers and employee benefit plans. These agencies called on the industry to meet their obligations to cover contraception as required under the law. Following this conversation, these agencies issued guidance to clarify protections for contraceptive coverage under the Affordable Care Act.
    • Expand Access Under the Affordable Care Act. The Departments of the Treasury, Labor, and HHS proposed a rule to strengthen access to contraception under the Affordable Care Act so all women who need and want contraception can obtain it. Millions of women have already benefited from this coverage, which has helped them save billions of dollars on contraception.
       
    • Support Title X Clinics. HHS provided resources to bolster quality family planning services through the Title X Family Planning Program. HHS provided funds to help clinics deliver equitable, affordable, client-centered, and high-quality family planning services and provide training and technical assistance for Title X clinics through the Reproductive Health National Training Center and the Clinical Training Center for Sexual and Reproductive Health. In addition, recognizing the important role that Title X clinics play in supporting access to contraception, the President’s Fiscal Year 2024 Budget Request includes $512 million for the Title X Family Planning Program, a 76 percent increase above the 2023 enacted level.
       
    • Enhance Access Through a New Public-Private Partnership. HHS announced a new public-private partnership to expand access to contraception with Upstream, a national nonprofit organization that provides health centers with free patient-centered, evidence-based training and technical assistance to eliminate provider-level barriers to offering the full range of contraceptive options. This partnership will leverage Upstream’s $90 million in resources and build on Upstream’s work with over 100 health care organizations across 18 states and accelerate their national expansion to transform contraceptive care in more than 700 health centers by 2030, reaching 5 million women of reproductive age every year.
       
    • Promote Access to Contraception for Service Members and Their Families and Certain Dependents of Veterans. To improve access to contraception at military hospitals and clinics, the Department of Defense expanded walk-in contraceptive care services for active-duty Service members and other Military Health System beneficiaries. And the Department of Veterans Affairs proposed a rule to eliminate out-of-pocket costs for certain types of contraception through the Civilian Health and Medical Program of the Department of Veterans Affairs.
       
    • Ensure Access to Family Planning Services at Health Centers. The Health Resources and Services Administration provided updated guidance to community health centers on their obligation to offer family planning services to their patients. The guidance included evidence-based recommendations and resources to support health centers in providing high-quality family planning services.
       

Include Family Planning Providers in Health Plan Networks. HHS strengthened the standard for inclusion of family planning providers in Marketplace plans’ provider networks under the Affordable Care Act. This policy, which goes into effect for plan year 2024, will help increase consumers’ choice of high-quality providers and improve access to care for low-income and medically underserved consumers.

FACT SHEET: One Year After SCOTUS Overturned Roe, Biden Administration Highlights Actions to Protect Access to Reproductive Health Care, Ongoing Commitment to Defending Reproductive Rights

New Yorkers protest the Supreme Court’s decision overturning women’s constitutional reproductive rights under Roe v. Wade a year ago © Karen Rubin/news-photos-features.com

On the one-year anniversary since the radical religious ideologues on the Supreme Court overturned Roe v. Wade and women’s constitutional right to self-determination and bodily autonomy, the White House issued this fact sheet highlighting the actions the Biden Administration has taken to protect access to reproductive health care, and its ongoing commitment to defending reproductive rights.

In a statement, President Joe Biden declared,

“One year ago today, the Supreme Court took away a constitutional right from the American people, denying women across the nation the right to choose. Overturning Roe v. Wade, which had been the law of the land for nearly half a century, has already had devastating consequences.
 
“States have imposed extreme and dangerous abortion bans that put the health and lives of women in jeopardy, force women to travel hundreds of miles for care, and threaten to criminalize doctors for providing the health care that their patients need and that they are trained to provide.
 
“Yet, state bans are just the beginning. Congressional Republicans want to ban abortion nationwide, but go beyond that, by taking FDA-approved medication for terminating a pregnancy, off the market, and make it harder to obtain contraception. Their agenda is extreme, dangerous, and out-of-step with the vast majority of Americans.
 
“My Administration will continue to protect access to reproductive health care and call on Congress to restore the protections of Roe v. Wade in federal law once and for all.”

– Karen Rubin/news-photos-features.com

One year ago, the Supreme Court eliminated a constitutional right that it had previously recognized, overturning nearly 50 years of precedent. Today, more than 23 million women of reproductive age—one in three—live in one of the 18 states with an abortion ban currently in effect. In the last year, women have been denied essential medical care to preserve their health and even save their lives. They have been turned away from emergency rooms, forced to delay care, and made to travel hundreds of miles and across state lines for needed medical care. Despite this devastating impact on women’s health, Republican elected officials continue to advance these bans at both the state and national level.

President Biden and Vice President Harris stand with the majority of Americans who believe the right to choose is fundamental—and who have made their voices heard at every opportunity since the Supreme Court’s decision in Dobbs v. Jackson Women’s Health Organization. As the President has made clear since the day of the Dobbs decision, the only way to ensure women in every state have access to abortion is for Congress to pass a law restoring the protections of Roe v. Wade.

While we continue to call on Congress to restore these protections, the Administration has taken executive action to protect access across the full spectrum of reproductive health care. In the wake of Dobbs, the President issued two Executive Orders directing a comprehensive slate of actions to protect access to reproductive health care services, including abortion. And today, the President is issuing a third Executive Order focused on strengthening access to affordable, high-quality contraception, a critical aspect of reproductive health care. The Administration remains fully committed to implementing these Executive Orders and advancing access to reproductive health care through the leadership of the interagency Task Force on Reproductive Healthcare Access, co-chaired by the White House Gender Policy Council and the Department of Health and Human Services (HHS).

Today, the Biden-Harris Administration is providing an update on the work of the Task Force on Reproductive Healthcare Access and the Administration’s ongoing efforts to defend reproductive rights.

Protecting Access to Abortion, including Medication Abortion

  • Ensure Access to Emergency Medical Care.  The Administration is committed to ensuring all patients, including women who are experiencing pregnancy loss, have access to the full rights and protections for emergency medical care afforded under federal law—including abortion care when that is the stabilizing treatment required. HHS issued guidance affirming requirements under the Emergency Medical Treatment and Labor Act (EMTALA) and Secretary Becerra sentletters to providers making clear that federal law preempts state law restricting access to abortion in emergency situations. The U.S. District Court of Idaho issued a preliminary injunction blocking the enforcement of Idaho’s abortion ban as applied to medical care required by EMTALA after the Department of Justice (DOJ) filed a lawsuit seeking to enjoin Idaho’s ban to the extent it makes abortion a crime even when necessary to prevent serious risks to the health of pregnant patients.
    • Defend FDA Approval of Medication Abortion in Court.  The Food and Drug Administration (FDA) and DOJ are defending access to mifepristone, a safe and effective drug used in medication abortion that FDA first approved more than twenty years ago, and FDA’s independent, expert judgment in court—including in a lawsuit in Texas that attempts to eliminate access nationwide. The Administration will continue to stand by FDA’s decades-old approval of the medication and by FDA’s ability to review, approve, and regulate a wide range of prescription medications.
       
    • Protect Access to Safe and Legal Medication Abortion.  On what would have been the 50th anniversary of Roe v. Wade on January 22, President Biden issued a Presidential Memorandum directing further efforts to protect access to medication abortion, including to support patients, providers, and pharmacies who wish to legally access, prescribe, or provide mifepristone—and to safeguard their safety and security, including at pharmacies. This Presidential Memorandum was issued in the face of attacks by state officials to prevent women from accessing mifepristone and discourage pharmacies from becoming certified to dispense the medication. These attacks followed independent, evidence-based action taken by FDA to allow mifepristone to continue to be prescribed by telehealth and sent by mail as well as to enable interested pharmacies to become certified.
       
    • Partner with State Leaders on the Frontlines of Abortion Access.  Today, the White House is releasing a new report on the battle for abortion access at the state level and the Administration’s engagement with state leaders over the past year. The report underscores the Administration’s ongoing commitment to partnering with leaders on the frontlines of protecting access to abortion—both those fighting extreme state legislation and those advancing proactive policies to protect access to reproductive health care, including for patients who are forced to travel out of state for care. The Vice President has led these efforts, traveling to 18 states and meeting with more than 250 state legislators, health care providers, and advocates in the past year. And last week, the White House hosted over 80 state legislators from 41 states to discuss efforts to protect access to reproductive health care.
    • Provide Access to Reproductive Health Care for Veterans.  The Department of Veterans Affairs (VA) issued an interim final rule to allow VA to provide abortion counseling and, in certain circumstances, abortion care to Veterans and VA beneficiaries. VA provides abortion services when the health or life of the patient would be endangered if the pregnancy were carried to term or when the pregnancy is a result of rape or incest. When working within the scope of their federal employment, VA employees may provide authorized services regardless of state restrictions. DOJ will defend any VA providers whom states attempt to prosecute for violations of state abortion laws. 
       
    • Support Access to Care for Service Members.  The Department of Defense (DoD) has taken action to ensure that Service members and their families can access reproductive health care and that DoD health care providers can operate effectively. DoD has released policies to support Service members and their families’ ability to travel for lawful non-covered reproductive health care and to bolster Service members’ privacy and afford them the time and space needed to make personal health care decisions.
       
    • Defend Reproductive Rights in Court. DOJ created a Reproductive Rights Task Force, which monitors and evaluates state and local actions that threaten to infringe on federal protections relating to the provision or pursuit of reproductive health care, impair women’s ability to seek abortion care where it is legal, impair individuals’ ability to inform and counsel each other about the care that is available in other states, ban medication abortion, or impose criminal or civil liability on federal employees who provide legal reproductive health services in a manner authorized by Federal law.

 
Supporting Women’s Ability to Travel for Medical Care

  • Defend the Right to Travel.  On the day of the Dobbs decisions, President Biden reaffirmed the Attorney General’s statement that women must remain free to travel safely to another state to seek the care they need. President Biden committed his administration to defending “that bedrock right,” and DOJ continues to monitor attempts to restrict a woman’s right to travel to receive lawful health care.  
    • Support Patients Traveling Out of State for Medical Care.  HHS Secretary Becerra and CMS Administrator Chiquita Brooks-LaSure issued a letter to U.S. governors inviting them to work with CMS and apply for Medicaid 1115 waivers to provide increased access to care for women from states where reproductive rights are under attack and women may be denied medical care. HHS continues to encourage state leaders to consider and develop new waiver proposals that would support access to reproductive health care services.
       

Safeguarding Access to Contraception

  • Strengthen Access to Affordable, High-Quality Contraception.  Today, the President issued an Executive Order directing agencies to: improve access and affordability for women with private health insurance; promote increased access to over-the-counter contraception; support access to affordable contraception through Medicaid and Medicare; ensure Service members, veterans, and Federal employees are able to access contraception; bolster contraception access across Federal health programs; and support access for college students and employees. The Task Force on Reproductive Healthcare Access will oversee the swift and robust implementation of this Executive Order in the coming months.
    • Clarify Protections for Women with Private Health Insurance. Under the Affordable Care Act, most private health plans must provide contraception and family planning counseling with no out-of-pocket costs. The Departments of the Treasury, Labor, and HHS convened a meeting with health insurers and employee benefit plans. These agencies called on the industry to meet their obligations to cover contraception as required under the law. Following this conversation, these agencies issued guidance to clarify protections for contraceptive coverage under the Affordable Care Act.
       
    • Expand Access Under the Affordable Care Act.  The Departments of the Treasury, Labor, and HHS proposed a rule to strengthen access to contraception under the Affordable Care Act so all women who need and want contraception can obtain it. Millions of women have already benefited from this coverage, which has helped them save billions of dollars on contraception.
       
    • Support Title X Clinics.  HHS provided resources to bolster quality family planning services through the Title X Family Planning Program, including funding to help clinics deliver equitable, affordable, client-centered, and high-quality family planning services and provide training and technical assistance for Title X clinics. In addition, recognizing the important role that Title X clinics play in supporting access to contraception, the President’s Fiscal Year 2024 Budget Request includes $512 million for the Title X Family Planning Program, a 76 percent increase above the 2023 enacted level.
    • Promote Access to Contraception for Service Members and Their Families and Certain Dependents of Veterans.  To improve access to contraception at military hospitals and clinics, DoD expanded walk-in contraceptive care services for active-duty Service members and other Military Health System beneficiaries, and eliminated TRICARE copays for medical contraceptive services. And VA proposed a rule to eliminate out-of-pocket costs for certain types of contraception through the Civilian Health and Medical Program of the Department of Veterans Affairs.
       

Reinforcing Nondiscrimination Protections under Federal Law

  • Issue Guidance to Retail Pharmacies.  HHS issued guidance to roughly 60,000 U.S. retail pharmacies to remind them of their obligations under federal civil rights laws to ensure access to comprehensive reproductive health care services. The guidance makes clear that as recipients of federal financial assistance, pharmacies are prohibited under law from discriminating on the basis of race, color, national origin, sex, age, and disability in their programs and activities. This guidance is especially important in the wake of reports that women of reproductive age have been denied prescription medication at pharmacies—including medication that is used to treat stomach ulcers, lupus, arthritis, and cancer—due to concerns that these medications could be used to terminate a pregnancy.
    • Protect Students from Discrimination Based on Pregnancy.  The Department of Education (ED) released a resource for universities outlining their responsibilities not to discriminate on the basis of pregnancy or pregnancy-related conditions, including termination of pregnancy. This guidance reminds schools of their existing and long-standing obligations under Title IX.
       
    • Strengthen Nondiscrimination in Healthcare.  HHS announced a proposed rule to strengthen nondiscrimination in health care. The proposed rule implements Section 1557 of the Affordable Care Act and affirms protections consistent with President Biden’s executive orders on nondiscrimination based on sexual orientation and gender identity.
       

Promoting Safety and Security of Patients, Providers, and Clinics

  • Promote Safety and Security of Patients, Providers and Clinics.  DOJ continues to robustly enforce the Freedom of Access to Clinic Entrances Act, which protects the right to access and provide reproductive health services.
     

Safeguarding Privacy and Sensitive Health Information

  • Strengthen Reproductive Health Privacy under HIPAA.  HHS issued a proposed rule to strengthen privacy protections under the Health Insurance Portability and Accountability Act (HIPAA). This rule would prevent an individual’s information from being disclosed to investigate, sue, or prosecute an individual, a health care provider, or a loved one simply because that person sought, obtained, provided, or facilitated legal reproductive health care, including abortion. By safeguarding sensitive information related to reproductive health care, the rule will strengthen patient-provider confidentiality and help health care providers give complete and accurate information to patients. Prior to the proposed rule and immediately after Dobbs, HHS issued guidance reaffirming HIPAA’s existing protections for the privacy of individuals’ protected health information.
    • Take Action Against Illegal Use and Sharing of Sensitive Health Information.  The Federal Trade Commission (FTC) has committed to enforcing the law against illegal use and sharing of highly sensitive data, including information related to reproductive health care. Consistent with this commitment, the FTC has taken first-of-its-kind enforcement actions against companies for disclosing consumers’ personal health information, including highly sensitive reproductive health data, without permission.
    • Help Consumers Protect Their Personal Data.  The Federal Communications Commission (FCC) launched a new guide for consumers on best practices for protecting their personal data, including geolocation data, on mobile phones. The guide follows a recent Notice of Proposed Rulemaking issued by FCC that would strengthen data breach rules to provide greater protections to personal data. In addition, separately, HHS issued a how-to guide for consumers on steps they can take to better protect their data on personal cell phones or tablets and when using mobile health apps, like period trackers, which are generally not protected by HIPAA.
    • Protect Students’ Health Information.  ED issued guidance to over 20,000 school officials to remind them of their obligations to protect student privacy under the Family Educational Rights and Privacy Act (FERPA). The guidance helps ensure that school officials—including those at federally funded school districts, colleges, and universities—know that, with certain exceptions, they must obtain written consent from eligible students or parents before disclosing personally identifiable information from students’ educational records, which may include student health information. The guidance encourages school officials to consider the importance of student privacy, including health privacy, with respect to disclosing student records. ED also issued a know-your-rights resource to help students understand their privacy rights for health records at school. 
    • Safeguard Patients’ Electronic Health Information.  HHS issued guidance affirming that doctors and other medical providers can take steps to protect patients’ electronic health information, including their information related to reproductive health care. HHS makes clear that patients have the right to ask that their electronic health information generally not be disclosed by a physician, hospital, or other health care provider. The guidance also reminds health care providers that HIPAA’s privacy protections apply to patients’ electronic health information.

 
Providing Access to Accurate Information and Legal Resources

  • Ensure Easy Access to Reliable Information.  HHS launched and maintains ReproductiveRights.gov, which provides timely and accurate information on people’s right to access reproductive health care, including contraception, abortion services, and health insurance coverage, as well as how to file a patient privacy or nondiscrimination complaint. DOJ also launched justice.gov/reproductive-rights, a webpage that provides a centralized online resource of the Department’s work to protect access to reproductive health care services under federal law.
    • Hosted a Convening of Lawyers in Defense of Reproductive Rights.  The Department of Justice and the Office of White House Counsel convened more than 200 lawyers and advocates from private firms, bar associations, legal aid organizations, reproductive rights groups, and law schools across the country for the first convening of pro-bono attorneys, as directed in the first Executive Order. Following this convening, reproductive rights organizations launched the Abortion Defense Network to offer abortion-related legal defense services, including legal advice and representation.
       
    • Launch a National Hotline to Enable Access to Accurate Information.  HHS issued a Notice of Funding Opportunity to establish a safe and secure national hotline to provide referral services to women in need of accurate information about their legal reproductive health care options. The nondirective hotline will provide information to patients served by the Title X family planning program who request information related to prenatal care and delivery; infant care, foster care, or adoption; or pregnancy termination.
       

Promote Research and Data Collection

  • Use Data to Track Impacts on Access to Care.  HHS will convene leading experts to discuss the state of existing reproductive health research and what the data tells us about the impact of the Dobbs decision, as well as the future of research on reproductive health care access. These convenings will help identify research gaps, opportunities for collaboration, and ways to bolster research efforts for both Federal agencies and external partners.

Leverage Maternal Health Data to Address Disparities.  FCC has committed to the swift implementation of the Data Mapping to Save Moms’ Lives Act, which directs FCC, in coordination with the Centers for Disease Control and Prevention, to incorporate publicly available data on maternal mortality and morbidity into its Mapping Broadband Health in America platform. This innovation will support women’s health by informing efforts to expand broadband access—including access to telehealth—in areas with poor maternal health outcomes. FCC will continue to explore opportunities to improve research, data collection, data analysis, and interpretation in the context of reproductive health care and maternal health outcomes.

Biden Takes New Actions to Lower Health Care Costs and Protect Consumers from Scam Insurance Plans, Junk Fees as Part of ‘Bidenomics’ Push

Actions are the latest in a series of steps the Biden Administration has taken to eliminate hidden junk fees and lower prescription drug costs

President Biden announced a series of new actions under a core pillar of his “Bidenomics” agenda to lower health care costs and crack down on surprise junk fees for American families and consumers © Karen Rubin/news-photos-features.com

Today, President Biden announced a series of new actions under a core pillar of his “Bidenomics” agenda to lower health care costs and crack down on surprise junk fees for American families and consumers. Since the beginning of his Administration, President Biden has passed historic legislation to lower health care costs for tens of millions of Americans, took on Big Pharma to finally allow Medicare to negotiate lower prescription drug prices, and took action to eliminate hidden fees in every sector of the economy. Today, the Administration is taking additional steps to continue to deliver on those promises.

The President announced:

  • The Biden-Harris Administration is cracking down on junk insurance.  New proposed rules would close loopholes that the previous administration took advantage of that allow companies to offer misleading insurance products that can discriminate based on pre-existing conditions and trick consumers into buying products that provide little or no coverage when they need it most.  These plans leave families surprised by thousands of dollars in medical expenses when they actually  use health care services like a surgery.  If finalized, the rule would limit so-called “short-term” plans to truly short time periods, close loopholes made worse by the previous administration, and establish a clear disclosure for consumers of the limits of these plans.
     
  • The Administration is releasing important guidance on rules against surprise medical billing. Biden-Harris Administration rules are already preventing as many as 1 million surprise medical bills every month.  New guidance will help stop providers from gaming the system by evading the surprise billing rules with creative contractual loopholes that still leave consumers with unexpected costs.
     
  • The Administration is announcing new steps to protect consumers from unfair medical debt. For the first time in history, the Consumer Financial Protection Bureau, HHS, and Treasury are collaborating to explore whether health care provider and third-party efforts to encourage consumers to sign up for these products are operating outside of existing consumer protections and breaking the law. Medical credit cards and loans often lead to higher costs without consumers fully understanding the risks.
     
  • The Department of Health and Human Services is releasing a new report showing that nearly 19 million seniors and other Part D beneficiaries are projected to save $400 per year on prescription drugs when President Biden’s $2,000 out-of-pocket cap goes into effect. It’s also releasing state by state data that demonstrates how seniors across the country are helped by just one element of the President’s robust agenda to lower prescription drug prices.

These actions are the latest in a series of steps the Administration has taken to address hidden junk fees across industries, including: cracking down on bounced check and overdraft fees in the banking industry, which is saving consumers more than $5 billion every year; proposing rules to require airlines to disclose all of their fees up front and successfully pushing a number of airlines to end family seating fees; and mobilizing private sector action to eliminate hidden junk fees for concert and sports tickets.

Cracking down on junk insurance
The Affordable Care Act has helped tens of millions of Americans access high-quality, affordable health insurance and protects Americans from being discriminated against because of pre-existing conditions.  But actions from the previous administration allowed insurance companies to take advantage of loopholes in the law and sell “junk insurance” plans that evade these protections. These “junk insurance” plans leave families surprised by thousands of dollars in bills, often because the insurance plan claims they have a pre-existing condition that isn’t covered.  For example, a man in Montana faced $43,000 in health care costs because his insurance plan claimed his cancer was a pre-existing condition, and a Pennsylvania woman was surprised by nearly $20,000 in bills for an amputation her junk plan refused to cover.  Today, the Biden-Harris Administration is proposing rules to crack down on this junk insurance, as part of the latest efforts by the Administration to eliminate hidden and junk fees in every industry across the economy.  These actions will reduce scam insurance plans that offer really no insurance at all.

  • “Short-term” plans must be truly short-term.  Under the new rules, if finalized, plans that claim to be “short-term” health insurance would be limited to just 3 months, or a maximum of 4 months, if extended – instead of the 3 years that junk plans can offer today as a result of changes made by the previous administration.
     
  • Income replacement “fixed indemnity” plans cannot mimic comprehensive health insurance. Under the proposed rules, plans that want to be exempt from the rules for health insurance — because they are designed to replace lost income when people get sick, rather than provide full medical coverage – have to live up to their original purpose and cannot be designed like comprehensive health insurance. This means that plans would need to make clear that people signing up for these plans would get a defined benefit, like $100 per day of illness, instead of thinking that they have comprehensive insurance. This proposed rule aims to prevent Americans from being on the hook for high medical costs, like a woman who needed an amputation and was left with $20,000 in medical debt because her plan did not include comprehensive coverage.
     
  • Plans have to clearly disclose limits. Under the proposed rules, plans are required to provide consumers with a clear disclaimer that explains the limits of their benefits, including to existing consumers currently enrolled in these plans. 

Preventing surprise medical billing
Before President Biden took office, millions of people received surprise bills for health care they thought was in-network care covered by their health plan.  This could include when people need emergency care and are taken to the nearest hospital, or when a pregnant woman delivers her baby at an in-network hospitals only to find out that the anesthesiologist who cared for her is actually out-of-network.  These surprise bills can cost people hundreds or thousands of dollars, averaging between $750 to $2,600. The Administration is protecting millions of consumers from surprise medical bills through the implementation of the No Surprises Act, which has already protected 1 million Americans every month since January 1, 2022 from unfair, undeserved out-of-network charges and balance bills.
 
The Biden-Harris Administration is taking an important next step to protect consumers from surprise medical bills by issuing guidance to clarify that payers cannot use loopholes to avoid surprising billing protections:

  • Ending abuse of “in-network” designation. Today, some health plans contract with hospitals, but try to claim that they are not technically “in-network” – which can expose consumers to higher payments when they have to make a hospital visit.  The Administration today is making clear this is not allowed under federal law: health care services provided by these providers are either out-of-network and subject to the surprise billing protections, or they are in-network and subject to the ACA’s annual limitation on cost-sharing, further protecting consumers from excessive out-of-pocket costs.
     
  • Facility fees treated like other health care costs. The Administration is also concerned about an increase in patients being charged “facility fees” for health care provided outside of hospitals, like at a doctor’s office. These fees are often a surprise for consumers. The Administration today is making clear that health plans and providers must make information about these facility fees publicly available to consumers, as well as other price information for services and items they cover or provide. In addition, nonparticipating providers and nonparticipating emergency facilities cannot evade the protections of the No Surprises Act, including the prohibition on balance billing, by renaming charges otherwise prohibited under the No Surprises Act as “facility fees.”

Protecting consumers from unfair medical debt
Increasingly, health care providers are signing up patients for third-party medical credit cards and loans to help pay for care. These credit cards often include teaser rates and deferred interest features that lead to higher costs for consumers, and may be offered even when low- or no-cost alternatives, such as zero-interest payment plans, financial assistance, or health coverage may be available. Health care providers may be promoting these products because they could allow providers to get paid faster, outsource servicing and collections costs to third parties, receive a higher payment from consumers who otherwise would pay a discounted price for care, and in some circumstances, receive a share of the interest revenue gained by the third-party financial company.
 
Use of these products may complicate insurance coverage and the availability of financial assistance, and consumers may not fully understand the risks associated with these products, leading to higher costs and negative impacts on consumers’ financial, physical, and emotional well-being.
 
For the first time ever, the Consumer Financial Protection Bureau (CFPB), HHS, and Treasury are collaborating on the needs of health care consumers by releasing a Request for Information (RFI) to learn more about this emerging practice and solicit comment on potential policy actions. Part of this RFI will explore whether providers are operating outside of existing consumer protections, because once medical bills are placed on medical credit cards, there may be gaps in how various consumer protections apply. 

New data shows nearly 19 million seniors and other Medicare beneficiaries will save an estimated $400 per year in prescription drug costs because of President Biden’s out-of-pocket spending cap
Thanks to President Biden’s Inflation Reduction Act, out-of-pocket spending on prescription drugs at the pharmacy will be capped at $2,000 per year for Medicare Part D enrollees starting in 2025.  Today, the Department of Health and Human Services (HHS) released data showing that 18.7 million (or 1 in 3) seniors and people with disabilities who are enrolled in Part D plans will save, on average, $400 per year when the $2,000 cap and other Inflation Reduction Act provisions go into effect in 2025. And some enrollees will save even more: 1.9 million enrollees with the highest drug costs will save an average of $2,500 per year starting in 2025. Overall, the law’s Part D benefits provisions will reduce enrollee out-of-pocket spending by about $7.4 billion annually.
 
To view data broken down by state and demographic, visit LINK.
 
Today’s actions follow significant milestones achieved last week in implementing President Biden’s historic law to lower health care and prescription drug costs. On June 30, the Centers for Medicare and Medicaid Services released revised guidance that describes how they will negotiate lower prescription drug prices for seniors later this year. The first ten drugs selected for negotiation will be announced by September 1, 2023. Also last week, the $35 monthly cap on insulin for Medicare Part B beneficiaries went into effect. Already 1.5 million Medicare Part D beneficiaries were saving up to hundreds of dollars per month on insulin costs because of the Inflation Reduction Act, and many more will benefit from these cost savings starting this month.
  

Biden Recognizes Private Sector Ticketing, Travel Companies For Agreeing to End Hidden Junk Fees, Implement Transparent Pricing

Companies Agree to Provide Millions of Consumers with the Full Price Up Front, Eliminating Hidden Costs and Saving Families Money

Our oceanfront AirBnB cottage, in Shippegan, New Brunswick, Canada. AirBnB is one of the companies that answered President Biden’s call to eliminate “junk” fees and implement transparent pricing © Karen Rubin/news-photos-features.com

Four months after he called out junk fees in his State of the Union and nine months after he first called for action to crack down on hidden fees to lower costs for consumers, President Biden is convening a meeting of private sector companies who have committed to end surprise fees by fully disclosing fees to consumers upfront. Together, these companies service millions of consumers each year, all of whom will receive a better shopping experience without surprise fees imposed at check-out.
 
Junk fees — hidden, surprise fees that companies sneak onto customer bills — are a pervasive problem in industries across the economy. That’s why the President has been calling on federal agencies, Congress, and private companies to take action to address these fees and provide consumers with honest, transparent pricing. A large body of research has shown that fees charged at the back-end of the buying process, along with other types of junk fees, make it harder to comparison shop, impede competition, and lead to consumers paying more.
 
The President announced actions by several companies in answer to that call. President Biden will be joined by representatives from Live Nation, SeatGeek, xBk, Airbnb, the Pablo Center at the Confluence, TickPick, DICE, and the Newport Festivals Foundation — companies large and small that currently provide all-in pricing or are announcing a new commitment to do so in the coming months.
 
In total, the companies that are making new commitments today will improve the purchasing experience for tens of millions of customers annually. These commitments are in response to the President’s call to action on junk fees in his State of the Union. For example, shortly after the State of the Union, Live Nation expressed interest to the Administration in announcing a commitment to offer all-in upfront pricing through its Ticketmaster platform. Today, Live Nation is committing to roll out an upfront all-in pricing experience in September showing just one clear, total price for more than 30 million fans who attend shows at the more than 200 Live Nation-owned venues and festivals across the country. Ticketmaster will also add a feature to give consumers the option to receive all-in upfront pricing for all other tickets sold on the platform.

 Additional commitments include:

  • SeatGeek, a ticketing platform that serves both the primary and secondary market, will roll-out product features over the course of the summer to make it easier for its millions of customers to shop on the basis of all-in price.
    • xBk, a Des Moines, Iowa-based venue and board member for the National Independent Venue Association, will introduce all-in pricing for over 15,000 tickets sold to over 100 events hosted at the venue.

These actions follow those that have been taken by other companies since the President first called for a crackdown on hidden fees in September:

  • Last December, Airbnb introduced a new total price display tool that allows US consumers to see all fees before taxes. Since then, more than 8 million visitors have taken advantage of the tool to view fee-inclusive pricing.
    • The Pablo Center at the Confluence from Eau Claire, Wisconsin will discuss the all-in pricing it implemented this April for the 90,000 tickets it sells each year for events at its venue. Since implementing this policy, the Pablo Center reports that it has experienced a 15% uptick in ticket sales, illustrating how venues can provide consumers with a transparent purchasing experience without hurting their business.

In addition, the President will be joined by representatives from companies that have long featured all-in pricing as part of their business models:

  • TickPick, a ticketing platform, has been displaying up-front, all-in pricing since its inception in 2011 for the more than 17 million users and 10 million tickets it sells per year.
    • DICE, a global independent music ticketing company, has been displaying upfront, all-in pricing since it was founded in 2014 for the more than 34 million fans attending over 40,000 events every year.
       
    • Newport Festivals Foundation, host of the long running Newport Folk Festival and Newport Jazz Festival, and has been displaying all-in pricing for the all 65,000 fans that attend their events each year since 2017.

The Administration has also taken a number of administrative actions to address junk fees in every sector of the economy, including:

  • The Consumer Financial Protection Bureau (CFPB) increased supervision of bank reliance on junk fees and issued guidance on illegal bounce check and overdraft fees, helping drive more than $5 billion in annual savings to consumers. Since the CFPB increased attention to these fees, 15 of the 20 biggest banks have committed to ending bounced check fees entirely. In addition, earlier this year the CFPB proposed a rule that is projected to cut credit card late fees by 75%, from $30 to $8, saving Americans up to $9 billion a year.
    • The Department of Transportation (DOT) has proposed a rule that would require airlines to disclose all of their fees, from baggage fees to wireless internet to seat changing fees, up front when you’re first comparing prices. In addition, last month DOT announced they will propose a rule later this year mandating airlines cover expenses and compensate stranded passengers they are at fault for a flight cancellation or delay. DOT also published a dashboard of airline policies for when flights are delayed or cancelled due to issues under the airlines’ control, leading 9 airlines to change policies to guarantee coverage of hotels and 10 airlines to guarantee coverage of meals, none of which was guaranteed before.
       
    • The Federal Communications Commission (FCC) released new rules that will go into effect next year to require broadband providers to use “nutrition labels”—similar to those used for food products—to convey key information to consumers about internet service options in an accessible format. The information featured will include prices, speeds, data allowances, and any additional fees charged. In addition, earlier this year the FCC proposed a new rule that would require cable provides to show all in pricing for cable and satellite services.

These voluntary actions demonstrate that companies both big and small recognize the importance of providing consumers with honest, up-front all-in pricing, rather than tricking them with surprise fees at the end of checkout. It is also just a first step towards addressing junk fees in the economy. The President continues to call on Congress to pass legislation that mandates up-front all-in pricing for all ticket sellers, bans surprise “resort fees,” eliminates early termination fees charged by cable, internet, and cellphone companies, and bans family seating fees

FACT SHEET: Biden Administration Makes Historic Investments to Build Community Climate Resilience

Mendocino, California. President Biden went to California to tour a coastal community that is working to safeguard their natural infrastructure – highlighting both the urgency of taking bold climate action and strengthening America’s resilience. © Karen Rubin/news-photos-features.com

Over the past two years, more than 100 million Americans have been personally affected by an extreme weather event. The record-shattering heat wave that hit Puerto Rico earlier this month, recent wildfire smoke that blanketed the Midwest and East Coast, and devastating storms in California, are just the latest evidence that climate change is not a far-off threat. It’s a crisis that’s here now. President Joe Biden and Vice President Kamala Harris understand that to protect lives and livelihoods, we need to both slash emissions and give Americans the tools they need to prepare for the growing impacts of climate change.

That is why President Biden went to California to tour a coastal community that is working to safeguard their natural infrastructure – highlighting both the urgency of taking bold climate action and strengthening America’s resilience. During his visit, he previewed the Biden-Harris Administration’s latest actions to help communities adapt to the changing climate.

Through the President’s historic Investing in America agenda, the National Oceanic and Atmospheric Administration (NOAA) launched a first-ever $575 million Climate Resilience Regional Challenge to help coastal and Great Lakes communities, including Tribal communities in those regions, become more resilient to extreme weather and other impacts of the climate crisis. The funding will support innovative coastal resilience and adaptation solutions, such as building natural infrastructure, planning and preparing for community-led relocation, and protecting public access to coastal natural resources, that protect communities and ecosystems from sea level rise, tidal flooding hurricanes, storm surge, among other severe climate impacts. The Challenge is part of the $2.6 billion in resilience funding for NOAA included in the Inflation Reduction Act, and is part of the President’s Justice40 Initiative.

In addition, the Bipartisan Infrastructure Law is investing $2.3 billion in states, Territories, Tribes, and the District of Columbia over the next five years to bolster grid resilience across the country. As part of this investment, California is set to receive $67.4 million in the coming days, with the ability to apply for additional funding in the future, to modernize its electric grid to reduce impacts from extreme weather, natural disasters, and wildfires, and to ensure the reliability of the state’s power sector.

The Biden-Harris Administration knows that effective climate resilience strategies must be locally tailored and community-driven. That is why the President is also announcing that later this year, he will bring together state, local, Tribal, and Territorial leaders – who are managing the lived impacts of climate change every day – for a White House Summit on Building Climate Resilient Communities. As part of the Summit, the Biden-Harris Administration will release a new National Climate Resilience Framework designed to advance U.S. Government actions, in alignment with non-Federal efforts, towards a shared vision of a climate-resilient nation.

These announcements build on the Biden-Harris Administration’s unprecedented commitment to strengthening America’s climate resilience.

Investing in Climate Resilience and Adaptation
President Biden’s Investing in America agenda is building communities that are not only resilient to the impacts of a changing climate, but also safer, more equitable, and economically stronger. The President’s Bipartisan Infrastructure Law and Inflation Reduction Act together invest more than $50 billion in climate resilience and adaptation. This historic level of funding is already delivering real-world benefits while creating high-quality jobs that provide opportunities to community residents and offer a free and fair choice to join a union. The President’s investments are upgrading aging roads and bridges, providing tax credits for families to add more efficient appliances to their homes, restoring critical waterways, forests, and urban greenspaces, supporting resilient and climate-smart agriculture, bolstering water infrastructure across the American West, modernizing our electric grid, and funding research to develop the latest energy-storage technologies here in America.

Enhancing Drought Resilience Across the West
The Biden-Harris Administration is leading a whole-of-government effort to support drought-prone communities address the ongoing megadrought in the West. The Inflation Reduction Act and Bipartisan Infrastructure Law together include $15.4 billion to enhance drought resilience. Earlier this year, under President Biden’s leadership, the Department of the Interior and the seven Colorado River Basin states united around a historic consensus-based agreement to conserve water resources in the critical Colorado River System. 

Combating the Growing Threat of Wildfires
In addition to implementing a 10-year Wildfire Crisis Strategy that will limit the impact and severity of fires in coming years, the Administration is helping communities prepare for and respond to wildfires right now. Recent actions include investing $7 billion to expand the wildland firefighter workforce, remove hazardous fuels from millions of acres of forest, and bring online new technology to better locate and respond to fires. The Administration also launched a new Community Wildfire Defense Grant program that helps local communities develop and implement wildfire preparedness plans. In addition, the Administration is tackling the pronounced health effects of wildfire smoke. AirNow.gov and its specialized Fire and Smoke Map provide Americans with real-time information about smoke and air quality so people can make informed decisions about how to stay safe. The Environmental Protection Agency recently made $10 million available to support wildfire smoke preparedness in community buildings, and awarded an additional $9 million for strategies to reduce smoke impacts.

Protecting Communities from Extreme Heat
The Biden-Harris Administration is saving lives by reducing exposure to extreme heat events. Community investments through the Low-Income Home Energy Assistance Program (LIHEAP) are reducing cooling costs and funding cooling centers in public facilities. The U.S. Forest Service’s Urban and Community Forestry Program recently announced $1 billion in grants to expand equitable access to trees and green spaces in urban communities, which will reduce heat-island effects and slash heating and cooling costs for residents. To better equip local officials and the public with robust and accessible information, the Administration launched Heat.gov, a centralized portal with real-time, interactive data and resources on extreme heat conditions, preparedness, and response.

Reducing Flood Risk for Households and Communities
Most homeowners’ and renters’ insurance does not cover flood damage. The Federal Emergency Management Agency’s National Flood Insurance Program is helping communities proactively protect their homes, businesses, and belongings from unexpected flood damage. This includes providing guidance to communities on how they can mitigate their flood risk. President Biden also reinstated the Federal Flood Risk Management Standard, which ensures that Federal agencies are considering and managing current and future flood risks in order to build a more resilient nation.

Promoting Climate-Smart Buildings and Infrastructure
Buildings and infrastructure investments last for generations when done right, so it is critical to plan and build in ways that promote long-term decarbonization and climate resilience. President Biden’s National Initiative to Advance Building Codes is accelerating adoption of modern building codes that protect people from extreme-weather events and save communities an estimated $1.6 billion a year in avoided damages. The Administration is also making billions of dollars available to build climate-smart buildings and green infrastructure, through programs as such the Federal Emergency Management Agency’s Building Resilient Infrastructure and Communities Program, the Department of Housing and Urban Development’s Green and Resilient Retrofit Program, and the Department of Transportation’s PROTECT program.
 
Incorporating Climate Risk into Decision-Making
Extreme weather related to climate change threatens the U.S. economy and the financial security of families, businesses, and workers. President Biden’s Executive Order on Climate-Related Financial Risk ensures that climate risk and resilience actions are appropriately factored into the formulation and execution of the President’s Budget, thereby properly managing and protecting Federal funding on behalf of taxpayers. This includes formally accounting for the risks that climate change pose in the President’s Budget for the first time.
 
Advancing Environmental Justice
The most severe harms from climate change fall disproportionately on communities that are least able to prepare for, and recover from, those harms. President Biden’s Justice40 Initiative makes it a goal that 40 percent of the overall benefits of certain Federal investments, including investments in climate resilience, flow to disadvantaged communities that are marginalized and overburdened by pollution. The President’s Executive Order on Revitalizing Our Nation’s Commitment to Environmental Justice for All directs agencies to better protect overburdened communities from pollution and environmental harms, including climate change. President Biden also created a White House Environmental Justice Advisory Council to ensure that the voices, perspectives, and lived experiences of communities with environmental justice concerns are heard in the White House and reflected in Federal policies. The Council includes a working group focused on climate resilience.
 
Supporting and Learning from Tribal Communities
Climate change has a disproportionate impact on Tribal communities and heritage, and Tribal representation is key to climate resilience efforts. The Bipartisan Infrastructure Law provides more than $200 million to support voluntary, community-led transition and relocation for Tribal communities severely threatened by climate change and accelerating coastal hazards. The Inflation Reduction Act includes Tribal-specific funding to support climate resilience and adaptation in Native communities. The Administration has also issued government-wide guidance and an accompanying implementation memorandum for Federal agencies on recognizing and including Indigenous Knowledge in Federal research, policy, and decision making.
 
Prioritizing Health and Safety
Climate and health outcomes are increasingly and inextricably linked. According to the Centers for Disease Control and Prevention, climate change is worsening asthma, cardiovascular disease, pest- and water-borne diseases, and other adverse health outcomes and chronic health conditions. President Biden established the first-ever Office of Climate Change and Health Equity in the Department of Health and Human Services to address the impact of climate change on the health of the American people. The Department’s Climate and Health Outlook index provides public data on climate and health projections to inform health professionals and the public.
 
Empowering Communities to Better Understand and Plan for Climate Risk
The Biden-Harris Administration is advancing actionable data, information, tools, and technical assistance to help people understand and address their climate risks. Specific steps include developing the Climate Mapping for Resilience and Adaptation (CMRA) tool to help communities understand and plan for local climate-related hazards; updating sea-level rise scenarios for all U.S. states and territories (Sea Level Rise Viewer) so communities can easily assess changes in coastal flood risk; creating the Climate and Economic Justice Screening Tool (CEJST) to help identify communities that will benefit from programs included in the Justice40 Initiative; developing an action plan to ensure that Federal agencies are producing coordinated, actionable climate information for end users; and increasing support for regional applied science and services centers, such as the U.S. Department of Agriculture’s Climate Hubs.

Harnessing the Power of Nature
Nature holds some of our best solutions to fight climate change and support communities’ adaptation to climate-related risks. Healthy forests, wetlands, and grasslands can also slow climate change by capturing and storing carbon dioxide. The Administration is taking bold action to ensure we look to nature and fully deploy nature-based solutions by setting the first national conservation goal through the America the Beautiful Initiative, to conserve at least 30% of U.S. lands and waters by 2030, launching the America the Beautiful Challenge, which provided $91 million in funds in the first year to protect and restore biodiversity, help achieve our climate goals, and ensure all Americans have access to nature, and improving forest health through President Biden’s Executive Order on Strengthening the Nation’s Forests, Communities, and Local Economies.

FACT SHEET: Historic Biden Administration Investments in Water Infrastructure, Lead Pipe Replacement Are Creating New Domestic Manufacturing Jobs

Major US manufacturers committing to new investments and hiring in response to historic $50B investment in water infrastructure from President Biden’s Investing in America agenda

 
Senior executives from major U.S.-based manufacturers and distributors of water infrastructure parts joined senior Biden-Harris Administration officials at the White House to announce new private sector investments spurred by President Biden’s Investing in America agenda. The Bipartisan Infrastructure Law includes a more than $50 billion investment in the nation’s water infrastructure – including $15 billion set-aside for lead service line replacement. This historic investment represents a transformational increase in federal investment in the nation’s drinking water infrastructure over the next five years. By requiring Made in-America products when using federal funding to rebuild infrastructure, President Biden is not only investing in fixing our country’s water systems and replacing lead pipes, but also creating good-paying jobs and new domestic manufacturing.
 
To meet the increased demand for American-made water products, American manufacturers are stepping up their production capacity with new investments, creating jobs and American industrial capacity in the process. Administration officials have also emphasized the importance of collaborating with unions to ensure these investments build the middle class from the middle out and bottom up, not top-down.
 
This week, the following firms announced tens of millions in new manufacturing investments and hiring commitments:

  • A.Y. McDonald Mfg. Co. is an Iowa-based 167-year-old 5th generation family business with three manufacturing locations in Iowa, and Tennessee, with plans underway to build a state-of-the-art brass foundry in Wisconsin. Since the beginning of 2019, A.Y. McDonald Mfg. Co. has doubled the manufacturing space of their Tennessee facility with a 100,000 square feet addition and has undertaken the largest capacity expansion in the company’s history having invested millions of dollars in new machinery and automation. Their production workforce has grown 45% since the end of 2020.  In addition, parent company A.Y. McDonald Industries built a 100,000 square foot warehouse to house finished goods and maintenance supplies to free up additional manufacturing space in the 3 existing A.Y. McDonald Mfg. Co. factories.  
     
  • Cerro Flow Products, an Illinois-based pipe manufacturer that is part of the Marmon/Berkshire Hathaway Group – has 100% domestic manufacturing facilities and is currently looking to hire 23 individuals for good-paying union jobs as soon as possible at their Sauget facility. Cerro is also standing ready to add additional shifts at their primary mill, as well as utilize additional manufacturing capabilities at other Cerro sites as demand for water products increases due to federal investments. Cerro has also invested in new workforce development programs, additional upskilling for maintenance and electrical staff, and sponsors a tuition reimbursement program unique to the industry. 
     
  • Commercial Forged Products, an Illinois based company that does not normally make water parts, plans to invest $9 million in additional forging and ancillary equipment, while adding 15 new United Steelworker positions across multiple shifts, as well as hire 4 additional skilled machinists in its Bedford Park facility.
     
  • The Ford Meter Box Company, an Indiana-based company, is expanding its production capacity to meet private and public waterworks infrastructure demand in the long term, as well as lead service line replacement project needs in the near term. Ford has hired 40 new employees already this year, added new shifts, and invested in new equipment, all of which will increase production by 20%.  The construction of a new 300,000 sq. ft. state of the art foundry will be announced this summer, pending final site selection. The new facility, along with committed downstream manufacturing investment, will increase production an additional 42%. This nine-figure manufacturing investment is the largest expansion project in the company’s 125-year history. Additionally, the continued pursuit of a complementary “investment in people” includes a Manufacturing Support Specialist Program, a two-year training program to advance employees into salaried manufacturing, support, and administrative positions.
     
  • Mueller Water Products, an Atlanta-based company, has invested  approximately $150 million in three capital projects in recent years, expanding its U.S. production capacity due in part to the billions of dollars in water infrastructure investments made in the Bipartisan Infrastructure Law. The largest capital project is a new brass foundry located in Decatur, Illinois, which will significantly expand its capacity to produce products, including those commonly used in lead service line replacements. The new foundry, which will replace an existing aging facility, uses a state-of-the-art brass alloy to eliminate dependence on imported Bismuth from China and increases recyclability.  The new foundry – expected to be fully online by 2024 and employ United Steelworkers – and other production improvements are also expected to increase Mueller’s production capacity for brass and other water infrastructure products. Mueller already employs about 465 United Steelworkers in Decatur, and the firm’s investments will help replace 100% of lead service lines and deploy the largest single investment in U.S. water infrastructure.
     
  • Quality Steel Products, a Michigan-based firm that previously did not make components in the water space, has committed to expand its business to meet upcoming demand by adding employees and additional shifts, investing millions of dollars in new forging presses and equipment, induction furnaces, transformers and capital improvement process.

Through historic levels of funding from President Biden’s Bipartisan Infrastructure Law and American Rescue Plan, annual appropriations, and harnessing a variety of tools across federal, state, and local government, the Biden-Harris Administration is delivering tangible progress on the groundbreaking Biden-Harris Lead Pipe and Paint Action Plan to replace all lead service lines in America in the next decade.
 
All Bipartisan Infrastructure Law investments are subject to the Build America, Buy America Act, which requires iron, steel, manufactured products and construction materials used in infrastructure projects to be produced in the United States. President Biden’s Investing in America agenda is revitalizing American manufacturing, including in once hollowed out communities, and creating good-paying jobs across the country. Under President Biden’s manufacturing boom, nearly 800,000 new manufacturing jobs have been created, and private sector companies have announced over $480 billion in manufacturing and clean energy investments since President Biden took office. This week’s announcements provide further evidence his approach to industrial policy is creating good jobs and rebuilding our manufacturing capacity while ensuring every family can access clean, safe drinking water. 

FACT SHEET: Biden Administration Announces $40 Billion to Connect Everyone in America to Affordable, Reliable, High-Speed Internet

Largest Internet Funding Announcement in History Kicks Off Administration-Wide Investing in America Tour
 

High-speed internet is no longer a luxury – it is necessary for Americans to do their jobs, to participate equally in school, access health care, and to stay connected with family and friends. Yet, more than 8.5 million households and small businesses are in areas where there is no high-speed internet infrastructure, and millions more struggle with limited or unreliable internet options. Just like Franklin Delano Roosevelt’s Rural Electrification Act brought electricity to nearly every home and farm in America, President Biden and Vice President Harris are delivering on their historic commitment to connect everyone in America to reliable, affordable high-speed internet by the end of the decade.

The Department of Commerce announced funding for each state, territory and the District of Columbia for high-speed internet infrastructure deployment through the Broadband Equity Access and Deployment (BEAD) program—a $42.45 billion grant program created in the Bipartisan Infrastructure Law and administered by the Department of Commerce. This announcement—the largest internet funding announcement in history—kicks off the three-week Administration-wide Investing in America tour, where President Biden, Vice President Harris, First Lady Jill Biden, Cabinet members, and Senior Administration Officials will fan out across the country to highlight investments, jobs, and projects made possible by President Biden’s economic agenda.

Among the highlights:

  • Awards range from $27 million to over $3.3 Billion, with every state receiving a minimum of $107 million.
     
  • 19 states received allocations over $1 billion with the top 10 allocations in Alabama, California, Georgia, Louisiana, Michigan, Missouri, North Carolina, Texas, Virginia and Washington.
     
  • With these allocations and other Biden administration investments, all 50 states, DC, and the territories now have the resources to connect every resident and small business to reliable, affordable high-speed internet by 2030. 

Details related to the BEAD allocation for the states, D.C., and territories, as well as the total Federal investment in high-speed internet in each State and Territory are available here.

In addition to helping connect everyone in America to high-speed internet, this funding will support manufacturing jobs and crowd in private sector investment by using materials Made in America.  For example, anticipating this major investment in high-speed internet infrastructure deployment, earlier this year, fiber optic cable manufacturers CommScope and Corning announced $47 million and $500 million expansions of their domestic manufacturing capacity, which will create hundreds of good-paying American jobs in North Carolina. These investments are part of the nearly $500 billion in private sector manufacturing and clean energy investments spurred by the President’s Investing in America agenda. The Investing in America agenda represents the most significant upgrade to our nation’s infrastructure in generations—an investment larger than FDR’s Rural Electrification effort, Eisenhower’s effort to build the Interstate Highway system, and the construction of the Panama Canal.

Internet for All

The announcement of BEAD funds is just one component of the Biden-Harris Administration’s efforts to ensure that everyone in America has access to affordable, reliable high-speed internet as part of President Biden’s Investing in America agenda.  In recent weeks, the Administration has announced over $700 million in USDA ReConnect awardsover $900 million in NTIA Middle Mile awards and launched the Online for All campaign to increase ACP enrollment and visibility.   Beyond BEAD, billions have already been announced or distributed to all states and territories to build out high-speed internet infrastructure by the Biden-Harris Administration.

In addition to BEAD, the Bipartisan Infrastructure Law includes:

  • $14.2 billion for the Affordable Connectivity Program (ACP), which provides eligible households up to $30/month (up to $75/month on qualifying Tribal Lands) off their internet bill, as well as a one-time $100 toward a desktop, laptop or tablet computer offered by participating internet service providers. Thanks to commitments by over 20 internet service providers, millions of Americans are using the Affordable Connectivity Program to access internet for free. Today, 19 million Americans are enrolled in this program. Households can check their eligibility and sign up at GetInternet.gov.
     
  • $2.75 billion for the Digital Equity Act, which provides grants to ensure communities have the skills and support needed to take advantage of high-speed internet connections;
     
  • An additional $2 billion for the Tribal Broadband Connectivity Program, which provides grants to federally recognized Tribal governments, Tribal organizations, Tribal Colleges and Universities, the Department of Hawaiian Homelands, and Alaska Native Corporations for high-speed internet deployment on Tribal lands, as well as for telehealth, distance learning, high-speed internet affordability, and digital inclusion; 
     
  • $2 billion for the Department of Agriculture’s (USDA) Reconnect Program, which provides loans and grants primarily to build high-speed internet infrastructure in eligible rural areas;
     
  • $1 billion for the Middle Mile Program, which provides funding for the “middle mile” backbone of internet networks.

President Biden’s American Rescue Plan also included over $25 billion for high-speed internet, including:

  • The Department of Treasury’s Capital Projects Fund (CPF) provides $10 billion to states, territories, and Tribes for which high-speed internet is an eligible use. Today, over $7 billion has already been dedicated to high-speed internet deployment and connectivity across 45 states;
     
  • The Coronavirus State and Local Fiscal Recovery Funds (SLFRF) delivered funding across the country to support the response to and recovery from the COVID-19 pandemic. About $8 billion is being used by states, territories, Tribes, and local governments for high-speed internet deployment and connectivity; and,
     
  • The Federal Communications Commission’s (FCC) $7 billion Emergency Connectivity Fund program helped schools and libraries close the “homework gap,” providing schools and libraries with 10.5 million connected devices and over 5 million internet connections.

Additional information on Biden-Harris high-speed internet programs and funding is available at InternetForAll.Gov. 


GOVERNOR HOCHUL, SENATOR SCHUMER, SENATOR GILLIBRAND AND NEW YORK CONGRESSIONAL DELEGATION ANNOUNCE NEW YORK WILL RECEIVE MORE THAN $664 MILLION IN FEDERAL BROADBAND EQUITY, ACCESS, AND DEPLOYMENT FUNDS

Governor Kathy Hochul, Senator Schumer, Senator Gillibrand and the New York Congressional Delegation today announced New York State’s ConnectALL Office has been allocated more than $664 million in funding from the federal Broadband Equity Access and Deployment Program, part of the 2021 Bipartisan Infrastructure Law. The BEAD allocation is the largest single investment in the ConnectALL program and will be used primarily for providing fiber optic infrastructure to locations in New York that currently have no broadband service.

“This transformative investment in New York’s ConnectALL program will be a gamechanger in advancing our statewide strategy to make affordable, high-speed internet available to all,” Governor Hochul said. “In today’s economy, reliable broadband access is an absolute necessity, and I thank the Biden administration, Majority Leader Schumer, Senator Gillibrand, and New York’s congressional delegation for continuing to prioritize critical infrastructure needs and for supporting our mission to expand broadband to every corner of our state.”

The $1+ billion ConnectALL initiative, announced by Governor Hochul in her January 2022 State of the State Address, is New York State’s largest-ever public investment in broadband, aimed at transforming the state’s digital infrastructure to connect all New Yorkers to the internet. In addition to funding to reach unserved and underserved locations, ConnectALL includes grant programs to invest in public broadband infrastructure, to upgrade service to affordable and public housing, and to support digital inclusion and education on using the internet.

New York will submit an initial grant distribution proposal to President Biden’s National Telecommunication and Information Administration (NTIA). Following approval of the initial proposal, the ConnectALL Office will solicit applications from internet service providers to build new broadband infrastructure in unserved and underserved areas of the state. That package of applications will be included in New York’s final proposal to NTIA, after which the state will receive its full BEAD allocation to issue grant awards.

The BEAD allocation follows a $100 million award from the Treasury Department’s Coronavirus Capital Projects Fund announced by the Governor in May and two planning grants totaling over $7 million announced in December.

The BEAD allocation is based largely on New York’s portion of the nation’s unserved locations, as reported by the Federal Communications Commission. The FCC’s map originally showed New York had 106,290 unserved locations. In October 2022, Governor Hochul issued a challenge to the FCC’s broadband data maps, which revealed more than 31,000 underserved and unserved locations missing from the FCC’s data, following a statewide mobilization of regional, county, and local officials and New York’s own, first-of-its-kind interactive broadband map. In May, the FCC released updated data including over 140,000 unserved locations in New York and nearly 38,000 locations that have access to the minimal level of internet speeds to qualify as underserved.

US Secretary of Commerce Gina Raimondo said,”Through President Biden’s Investing in America agenda, we are making the largest investment ever to deliver reliable and affordable high-speed Internet for all New Yorkers, close the digital divide in the Empire State, and create thousands of good jobs as we build out our network infrastructure. I appreciate Governor Hochul’s leadership and work to ensure New York families will be able to connect to the digital economy and access even more opportunities to learn, work, and grow.”

Senate Majority Leader Chuck Schumer said, “Thanks to the Bipartisan Infrastructure & Jobs Law we passed, a historic nearly $670 million is now on its way to expand broadband infrastructure and boost high-quality internet access across New York. Whether it is for work, school, or getting the healthcare you need, access to the internet is not luxury, but a necessity for modern life. Long before the pandemic, communities across New York, from rural communities Upstate to bustling city neighborhoods, have struggled to obtain reliable high-speed internet service. I am proud to deliver this record setting nearly $670 million for New York to help finally close the digital divide. New York, under Governor Hochul’s leadership, is leading the charge to get all New Yorkers the equitable access to the internet they deserve, and this major federal investment will help finally give our communities the support they need to succeed in the 21st century.”

Senator Kirsten Gillibrand said, “Access to affordable, high-quality internet is critical to connect New Yorkers with work, health care, education and more. This funding will go directly toward bridging the digital divide and deliver high-speed internet to families across New York State. I am proud to have worked to deliver this funding through the Bipartisan Infrastructure Law and I will continue to fight so every New Yorker has access to reliable, high-quality internet.”

Democratic Leader Hakeem Jeffries said, “In New York and throughout America, there are far too many under-resourced communities without the ability to connect online and engage with family, work, school and telemedicine. Working with President Biden, House Democrats passed the Infrastructure Investment and Jobs Act to ensure that every single community throughout our nation has access to high-speed internet. We invested $65 billion to expand broadband in every single zip code. I thank President Biden and Governor Hochul for their leadership in shepherding $665 million in crucial investments across New York.”

Representative Grace Meng said, “In Congress, I’m proud to have helped create the $7.1 billion Emergency Connectivity Fund, which helped schools and libraries in Queens and across New York purchase Wi-Fi hotspots, modems, routers, internet service and internet-enabled devices so that we could increase access to the internet in our communities. I thrilled to hail this BEAD allocation as well, and glad to see that the Bipartisan Infrastructure Law that I helped pass continues to deliver for our state. I will continue championing the crucial issue of improving internet and broadband access, and I thank Governor Hochul for announcing these funds.”

Representative Richie Torres said, “Reliable, accessible, and quality internet access is no longer a luxury — it is a necessity for almost every aspect of everyday life. That’s one reason why I was proud to support the Bipartisan Infrastructure Law, which continues to deliver historic and critical investments in New York and across America. Too many of our communities have historically been left behind without the ability to easily get online and be connected. But with this funding, our state and federal governments will work together to deploy broadband service equitably to make sure every New Yorker has the internet service they need and deserve.”

Other ConnectALL Initiatives

Under Governor Hochul’s leadership, the ConnectALL Office is gathering an unprecedented level of community input to inform its broadband work. ConnectALL recently completed a three-month, statewide tour of 10 digital equity listening sessions to inform the development of the BEAD Five-Year Action Plan, the BEAD Initial Proposal, and the State Digital Equity Plan. ConnectALL will continue to meet with community stakeholders, coalitions, and statewide networks, including through the New York State Internet Access Survey, which closes on June 30. ConnectALL will make the New York State Digital Equity Plan available for public comment in September.

In addition, New York State continues to drive nation-leading enrollment in the federal Affordable Connectivity Program, a nationwide subsidy to expand broadband access to low-income households. New York has enrolled more than 1.3 million households in the program as a result of a multi-agency, multi-pronged outreach effort led by the New York State Department of Public Service and Empire State Development.