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Biden Administration, Economic Development, Foreign Policy, Foreign Relations, Infrastructure, Joe Biden, News & Photo Features, President Joe Biden

FACT SHEET: G20 Leaders Agree to Partnership for Global Infrastructure and Investment

At the 2023 G20 Summit in New Delhi, India, President Biden and Prime Minister Modi co-hosted a group of G20 leaders to accelerate investments to scale high-quality infrastructure projects and the development of economic corridors through the Partnership for Global Infrastructure and Investment (PGI).
 
The meeting of the leaders from the United States, European Union (EU), France, Germany, India, Italy, Japan, Mauritius, the United Arab Emirates, Saudi Arabia, and the World Bank demonstrated the collective urgency to make meaningful progress in narrowing the infrastructure gap in low- and middle-income countries to enable inclusive and sustainable growth and promote economic activity and prosperity.

To further scale this work, the United States will continue to leverage public capital to mobilize private sector investments and collaborate with partners to develop agile and flexible relationships that directly respond to our partners’ needs, laying the groundwork to create more security, prosperity, and opportunities for generations to come.
 
Across the world, from Asia to Africa to the Western Hemisphere, PGI will continue to build and strengthen coalitions of partners — governments, the private sector, and multilateral development banks — to develop key economic corridors and drive high-quality investments.  
 
President Biden announced a range of new projects to generate economic growth, incentivize new investments, and create quality jobs. They include a landmark India-Middle East-Europe Economic Corridor, as well as a partnership with the European Union to join the United States in supporting the expansion of the Lobito Corridor, and new PGI projects in a range of sectors and across regions.
 
Developing Key Economic Corridors
Launch of the Landmark India-Middle East-Europe Economic Corridor: Earlier this year, President Biden outlined his vision to develop economic corridors by strategically layering transformative investments across multiple sectors in countries to leverage broader effects of boosting economic development, securing supply chains, and bolstering regional connectivity. Today, the leaders of the United States, India, Saudi Arabia, the United Arab Emirates, France, Germany, Italy and the European Union announced a new India-Middle East-Europe Economic Corridor . The transformative partnership has the potential to usher in a new era of connectivity from Europe to Asia with a railway, linked through ports, connected by the Middle East. This will create novel interconnections to facilitate global trade, expand reliable access to electricity, facilitate clean energy distribution, and strengthen telecommunications links.  The founding partners intend to work with international partners and the private sector to:

  • Connect India to Europe—linked by a railway line and existing ports through the UAE, Saudi Arabia, Jordan, and Israel—that will generate economic growth while incentivizing new investments and the creation of quality jobs;
     
  • Connect two continents to commercial hubs and facilitate the development and export of clean energy;
     
  • Support existing trade and manufacturing synergies and strengthen food security and supply chains; and
     
  • Link energy grids and telecommunication lines through undersea cables to expand reliable access to electricity, enabling innovation of advanced clean energy technology and connect communities to secure and stable Internet.

Further development of the Lobito Corridor:  Since President Biden announced investments to develop the Lobito Corridor in May 2023, the United States and its partners are advancing efforts to support a transparent and developed critical minerals sector that can both diversify the global electric vehicle supply chain and benefit local economies. The Corridor serves as an important economic link connecting both the continent and the Democratic Republic of Congo and Zambia through the Lobito port in Angola. Once transport infrastructure connecting all three countries is fully operational, the Corridor aims to enhance export possibilities, boost the regional circulation of goods, and promote the mobility of citizens. Specific new announcements include:

  • Today, the European Union officially teamed up with the United States to support the development of the Corridor, including supporting the African Governments in launching feasibility studies for the construction of a new greenfield rail line expansion from eastern Angola through northern Zambia.  
     
  • Together, the United States and the European Union intend to explore cooperation in the areas of transport infrastructure investments; measures to facilitate trade, economic development and transit; and support to related sectors to fuel inclusive and sustainable economic growth and capital investment in Angola, Zambia and Democratic Republic of the Congo in the longer term. Specifically, this includes developing clean energy projects to increase the power supply to surrounding communities, supporting diversified investment in critical minerals and clean energy supply chains, extending digital access, growing agriculture value chains to enhance local food production for the region’s expanding population and to address global food insecurity, as well as augmenting local workforce training, support for small and medium enterprises and economic diversification.

Driving High Quality Transformative Investments Around the World
This G20 event builds on recent PGI investment announcements by President Biden and Vice President Harris, including at the ASEAN Summit and visit to Indonesia, the bilateral meeting with G20 host, India, and travel to Vietnam. In addition to economic corridors, PGI is driving high quality transformative investments around the world across PGI target sectors, including:
 
Greater Economic Cooperation with India:

  • Renewable Energy Generation: U.S. Development Finance Corporation (DFC)’s Board of Directors approved the provision of up to $425 million in financing to TP Solar Limited, a subsidiary of The Tata Power Company Limited, to build and operate a solar photovoltaic cell and module manufacturing facility in Tamil Nadu, India. Pending congressional notification, this investment will support India’s ambitious program to increase renewable energy generation while developing domestic industry to take advantage of the global clean energy transition. DFC’s support of TP Solar will build on previous support for India’s leadership in clean energy and contributes to a more diverse global supply chain for clean energy technology. 
     
  • Renewable Infrastructure Fund: India and the United States are also advancing the creation of investment platforms to lower the cost of capital and accelerate the deployment of greenfield renewable energy, battery storage and emerging green technology projects in India. Towards this end, India’s National Investment and Infrastructure Fund and the DFC exchanged letters of intent to each provide up to $500 million to anchor a renewable infrastructure investment fund.
     
  • Diversified Supply Chain for E-Mobility: The United States and India committed to contribute public finance and mobilize philanthropic finance to execute a payment security mechanism that will expand electric mobility in India by accelerating the procurement and deployment of 10,000 electric buses in India, providing extensive climate benefits and diversifying the global e-mobility supply chain.  
     
  • Health Manufacturing in India and Making Insulin Accessible Globally: DFC approved an up to $50 million loan to GeneSys Biologics Private Limited (“GeneSys”) to support its construction of a manufacturing facility in Telengana, India, to scale its production of insulin biosimilars by 10X, with the expectation that the biosimilars will be reviewed for approval by the U.S. Food and Drug Administration, as well as equivalent regulators in India and other countries. GeneSys will do drug substance manufacturing in Telangana and has partnered with Civica Rx to do fill-and-finish drug product manufacturing in Virginia. This effort will help to making insulin accessible and affordable in India, the United States, and around the world. The U.S. Department of Health and Human Services’ Biomedical Advanced Research and Development Authority has provided technical support throughout the development of the project.   
     
  • 5G Open RAN: The United States and India share a vision of creating secure and trusted telecommunications, resilient supply chains, and enabling global digital inclusion.  Further collaboration includes establishing two joint Task Forces on advanced telecommunications, focused on Open RAN and research and development in 5G/6G technologies. Public-private cooperation between vendors and operators will be led by India’s Bharat 6G Alliance and the U.S. Next G Alliance. Both countries are partnering on Open RAN field trials and rollouts, including scaled deployments, with operators and vendors of both markets.

Modern Ports in El Salvador: The U.S. Trade and Development Agency (USTDA) intends to provide a technical assistance grant of $900,000 to El Salvador’s national ports commission to modernize the container terminal at the Port of Acajutla. USTDA’s technical assistance aims to promote operational efficiency, reliability, and safety at El Salvador’s busiest seaport and to provide recommendations for deploying green port and digital technologies to reduce the port’s energy consumption, and decrease air pollution from maritime vessels.
 
Supply Chains in Mozambique:  DFC’s Board of Directors approved the provision of up to $150 million in financing to Twigg Exploration and Mining to fund investments in the company’s graphite mining and processing operation in Balama, Mozambique. Pending congressional notification, this investment will increase production and diversify the global supply chain for graphite which is a critical mineral for a range of clean energy and advanced technology products. DFC’s support will also lead to job creation and investment in local infrastructure while ensuring high environmental and social standards that are essential for responsible mining. 

Transportation Systems in the Philippines: USTDA intends to provide grant funding towards a feasibility study to support the Philippines’ Department of Transportation in assessing the viability of developing an expanded vessel traffic management system in the Philippines. As a nation comprised of over 7,000 islands, over 800 commercial ports, and growing vessel traffic activity, the Philippines aims to expand its vessel traffic management system capabilities to cover major ports and navigational paths. The feasibility study will assess the viability of potential implementation at 8 to 10 locations in the Philippines and develop the technical architecture and infrastructure requirements for each location.
 
Bridge the Gender Digital Divide: During her March 2023 trip to Africa, Vice President Kamala Harris announced the launch of the Women in the Digital Economy Fund (Wi-DEF) by the U.S. Agency for International Development (USAID), in partnership with the Bill & Melinda Gates Foundation with a combined $60 million commitment.  Since then, that commitment has leveraged further investment and led to the launch of the Women in the Digital Economy Initiative.  This effort will advance digital access and affordability; develop relevant products and tools; provide digital literacy and skills training; promote online safety and security; and invest in sex-disaggregated data and research.

  • Since the launch of WiDEF, partners have pledged an additional $11.6 million – $10 million from Microsoft and $1.6 million from the Government of the Republic of Korea.
     
  • Building off of the success of this Fund, USAID is launching the Women in the Digital Economy Initiative which convenes new partners who have pledged over $515 million collectively to help close the gender digital divide.  Australia, Canada, Finland, Germany, Japan, Sweden, and the United Kingdom have all pledged their support. In addition, private sector and philanthropic organizations have made contributions, including Amazon Web Services, the Bill & Melinda Gates Foundation, CARE, Citi, G20 EMPOWER India Chapter, the Global Digital Inclusion Partnership, GSMA, the Mastercard Center for Inclusive Growth, Microsoft Corporation, myAgro, Reliance Foundation, Viasat, Visa Foundation, and Visa Inc.
Biden Administration, Economic Development, Foreign Policy, Foreign Relations, Joe Biden, News & Photo Features, President Joe Biden

FACT SHEET: Biden Delivers on an Ambitious Agenda for the G20

When President Biden took office, he committed to restore the United States’ leadership role in the world, rebuild our relationships abroad, and champion an economic agenda at home and abroad to deliver sustainable and inclusive growth for American families—and families everywhere. This week, at the G20 Summit in New Delhi, President Biden continued to deliver on those commitments.
 
Leading by example and working with partners around the world, the United States and the G20 delivered for developing countries, for our shared planet, and for an inclusive and responsible digital transformation. At a moment when the global economy is suffering from the overlapping shocks of the climate crisis, fragility, and conflict—including the immense suffering unleashed by Russia’s war in Ukraine—this year’s Summit proved that the G20 can still drive solutions to our most pressing issues.
 
The United States is committed to the G20 and to building on the progress made in India’s G20 Presidency, starting with Brazil’s Presidency in 2024 and South Africa’s Presidency in 2025. In a sign of the President’s steadfast commitment to the G20 as the premier forum for international economic cooperation, the United States will host the G20 in 2026. As President Biden called for last year at the U.S.-Africa Leaders’ Summit, the United States is also pleased to have supported and now welcome the African Union as a permanent member of the G20, a reflection of both the G20’s vitality and the important role of Africa in the global economy.
 
Delivering for Developing Countries
 
At the midpoint of the 2030 Agenda for Sustainable Development, compounding crises have resulted in a stalling or reversal of development gains. In New Delhi, President Biden and other G20 leaders committed to implement the G20 2023 Action Plan to Accelerate the Sustainable Development Goals (SDGs). The United States remains committed to the full implementation of the 2030 Agenda, both at home and around the world.
 
At home, President Biden is rebuilding the American economy from the bottom up and middle out and making historic investments in our infrastructure, our people, and our climate. These policies have enabled the United States to have the strongest recovery of any major economy. As the world’s largest bilateral donor of official development assistance, the United States is working to help develop countries support their development priorities in areas like inclusive growth, infrastructure, education, health and health security, and resilient and sustainable food systems.
 
Recognizing that public funding alone is not enough, President Biden is championing an ambitious agenda to mobilize significant additional financing for development from all sources—public and private, domestic and international. At the G20, he delivered key elements of that agenda.

  • Delivering a better, bigger, more effective World Bank. The United States is championing a major effort to fundamentally reshape the multilateral development banks to meet 21st century challenges. Over the last year, the World Bank, with the backing of the G20, has made meaningful progress in unlocking new financing capacity and advancing operational reforms. Under Ajay Banga’s leadership, the World Bank is set to play a transformative role in addressing global challenges. Last month, President Biden asked Congress for funds to unlock more than $25 billion in World Bank Group concessional financing. In New Delhi, he rallied G20 partners to agree to collectively mobilize more headroom and concessional finance to boost the World Bank’s capacity to support low- and middle-income countries. This initiative will make the Bank a better and bigger institution able to provide resources at the scale and speed needed to tackle global challenges and address the urgent needs of the poorest countries.
     
  • Supporting countries that fall into economic crisis. President Biden called on the G20 as leaders in the global economy to provide meaningful debt relief so that low- and middle-income countries can regain their footing as they seek to recover from compounding economic shocks in the last few years, and invest in critical development needs. Leaders in New Delhi committed to redouble efforts to resolve ongoing debt distress cases—like Ghana and Sri Lanka. President Biden made it clear that the United States expects meaningful progress by the World Bank and IMF Annual Meetings in October. 
     
  • Make financing more sustainable. President Biden pressed leaders to think beyond our current frameworks to provide new solutions to help translate unsustainable debt into transformative investments. The U.S. Development Finance Corporation has provided such financing to facilitate more than $1 billion in debt for nature swaps in the Western Hemisphere and Africa—unlocking funds for countries to tackle the climate and biodiversity crises and to invest in other critical development needs. At the G20, President Biden also pressed all creditors—including the private sector and multilateral development banks—to offer climate resilient debt clauses in their lending. The U.S. Export Import Bank is preparing to do so in select bilateral lending, in line with its governance framework.
     
  • Developing transformative economic corridors and scaling high-quality investments through the Partnership for Global Infrastructure and Investment (PGI). At an event co-hosted by President Biden and Prime Minister Modi, President Biden and partners announced a landmark India-Middle East-Europe Economic Corridor that will usher a new era of connectivity from Europe to Asia, facilitating global trade, as well as cooperation on energy and digital connectivity. President Biden also announced a new partnership with the European Union to expand investments in the Lobito Corridor. The President called on partners to deploy public capital to strategically leverage the expertise and financing of the private sector to help secure and diversify 21st century energy supply chains, expand digital connectivity, increase electricity access, bolster food security, and strengthen health systems.

 
Working for a Just Peace in Ukraine
 
President Biden is engaging with countries around the world in pressing for a just peace in Ukraine based on sovereignty and territorial integrity. One and a half years after Russia’s illegal and unjustified aggression against Ukraine, G20 leaders joined President Biden in welcoming efforts to secure “a just peace that upholds all the Purposes and Principles of the UN Charter.” G20 leaders emphasized that countries must refrain from the threat or use of force to seek territorial acquisition against any state’s territorial integrity and sovereignty. G20 leaders also united in highlighting the human suffering and severe economic impacts of the war against Ukraine. The statement highlighted that major economies from around the world – including Brazil, India, South Africa – are united in the need for Russia to uphold international law including territorial integrity and sovereignty. 
 
 
Delivering on Food Security
 
Since the beginning of his Administration, President Biden has made global food security a priority and galvanized collective action to respond to the global food crisis. The United States has committed more than $15.2 billion in critical humanitarian assistance and medium- to long-term food security investments around the world. These investments have helped countries address acute needs and avert famine, as well as diversify their supply chains. At the G20, President Biden championed an agenda focused on mitigating the acute food crises the world is facing today, as well as working together with G20 countries to mitigate against future shocks. 

  • Addressing the food security crisis exacerbated by Russia’s unlawful war in Ukraine. Russia has intensified its attack on global food security with its July decision to withdraw from the Black Sea Grain Initiative (BSGI)—which was responsible for nearly 33 million tons of food exports, about two-thirds of which went directly to middle- and lower-income countries—and its attacks on Ukraine’s port infrastructure to prevent Ukrainian grain shipments from getting to those who need it most. The United States continues to lead the charge to mitigate the impact of Russia’s invasion on world food security and to provide food assistance to the most vulnerable populations in the world. In addition to the more than $15.2 billion that the United States has provided since 2021 to address famine and food insecurity, the Biden-Harris Administration and G7 leaders have rallied the world to contribute an additional over $4.5 billion for acute and medium to long term food security assistance, half of which came from the United States. At the G20, President Biden was unequivocal in calling on Russia to stop weaponizing food, which is causing immense human suffering around the world. G20 leaders united to call for the full, timely and effective implementation of the BSGI.   
     
  • Building more resilient food systems to mitigate against future food shocks. Collective G20 action is necessary to help address global food, climate, and supply chain shocks, prevent hunger and build more sustainable, inclusive, and resilient agriculture and food systems. In New Delhi, President Biden joined G20 leaders in committing to keep food supply chains and trade open, including for agricultural inputs like fertilizer and seeds; adopt and expand climate-smart agricultural practices; invest in critical agricultural infrastructure; promote innovative agricultural research and innovation; and use digital technology to help lower production and transportation costs and diversify access to new global food markets.

 
Delivering on Global Health Challenges
 
The United States is the world’s largest bilateral donor for global health and is committed to working alongside the G20 to build a safer, more equitable future. This includes working together to invest in health equity through vaccine distribution, expanding and improving access to health systems, and facilitating the availability of quality services to historically marginalized groups. It also includes strengthening health systems and institutions; combatting infectious diseases including HIV/AIDS, tuberculosis and malaria; advancing sexual and reproductive health and rights, and accelerating efforts towards universal health coverage.

  • Improving pandemic preparedness and response. Last year, President Biden galvanized the world to help launch a new Pandemic Fund to fill critical gaps in pandemic preparedness and global health security, committing $450 million and unlocking an additional $1 billion in initial contributions from nearly two dozen countries and philanthropies. This year, the Pandemic Fund is a reality, and recently concluded its first call for proposals, approving $338 million in grants to 37 countries across 6 regions to strengthen disease surveillance and early warning systems and laboratories. In New Delhi, President Biden made it clear that the G20 cannot lose its focus on improving pandemic preparedness, prevention, and response. To this end, he has committed an additional $250 million in planned funds to the Pandemic Fund.
     
  • Building stronger health systems. As we emerge from the acute phase of the COVID-19 pandemic, many countries’ health systems are struggling to restore access to basic services, like routine childhood immunization and maternal health care. To help the world get back on track, President Biden launched the Global Health Worker Initiative in 2022, recognizing that a health workforce that is supported, equipped, and protected is necessary to reclaim lost ground from the pandemic and prepare for future health threats. President Biden urged G20 leaders to commit to reverse the first global decline in life expectancy in more than seven decades. G20 leaders committed to work together to strengthen primary health care and restore essential health services to better than pre-pandemic levels by the end of 2025.  
     
  • Tackling the overdose crisis: G20 leaders came together for the first time to elevate counternarcotics challenges, and synthetic drugs in particular, as a G20 priority. Leaders recognized the shared public health threats posed by synthetic drugs and committed to enhanced information sharing and capacity building to address these challenges, advancing the critical actions the Biden-Harris Administration is taking to address the overdose crisis at home.

 
Delivering for Our Planet
 
Building a clean energy economy here at home is one of President Biden’s top priorities. But climate change is an issue that requires global action, and the G20 is collectively responsible for about 80 percent of global emissions. In New Delhi, President Biden secured commitments to ensure the G20 continues to set its collective ambition high to address the climate crisis.

  • Tripling global renewable energy capacity by 2030. At home, President Biden signed into law the Inflation Reduction Act (IRA) to increase investments in clean energy technologies. Outside estimates report that the IRA has already created more than 170,000 jobs and will create 1.5 million over the next decade. And the IRA will expand clean energy supply, speed global adoption, and drive down technology costs by as much as 25 percent globally. I In New Delhi, President Biden and G20 leaders committed to pursue efforts to triple global renewable energy capacity by 2030, encouraging more countries to follow the IRA playbook of investing in clean energy manufacturing and deployment, creating jobs, and fighting climate change.
     
  • Recognizing the need to peak global emissions by 2025. President Biden successfully urged the G20 to join together in acknowledging, for the first time, the need to peak global emissions by no later than 2025, and in recognizing the to reduce greenhouse gas emissions by 43 percent by 2030, and 60 percent by 2035, relative to 2019 levels. The Intergovernmental Panel on Climate Change has said that these actions are critical to achieving global net zero greenhouse gas emissions/carbon neutrality by or around mid-century and limiting warming to 1.5 degrees Celsius.
     
  • Encouraging countries to incorporate economy-wide targets covering all greenhouse gases into their nationally determined contributions. G20 nations have the ability to reduce their emissions in a way that meaningfully supports the full and effective implementation of the Paris Agreement and its temperature goals. With President Biden’s leadership, G20 countries for the first time urged all countries to include economy-wide targets covering all greenhouse gases in upcoming cycles for Nationally Determined Contributions (NDCs).
     
  • Launching the Global Biofuels Alliance. Sustainable biofuels are critical to facilitating net zero by 2050. Advanced biofuels can be sustainably produced from abundant organic material—and supplied by reliable trading partners like the United States. In New Delhi, the G20 Presidency launched the Global Biofuels Alliance with the United States as a founding member along with India, Brazil, Italy, Canada, Argentina, and South Africa. This new Alliance will bring countries together to expand and create new markets for sustainable biofuels.

 
Delivering an Inclusive and Responsible Digital Transformation
 
The digital transformations underway offer the potential to improve the lives of our citizens if they are harnessed responsibly and in a way that drives broadly shared growth. In order to realize the benefits of these technologies, President Biden believes it is necessary to address the barriers to inclusive access and to shape regulatory and governance approaches to maximize their benefits while mitigating their risks. This is the agenda that he championed in New Delhi.

  • Harnessing AI responsibly, for good and for all. President Biden championed an approach to AI that includes a commitment to responsible AI development, deployment, and use, to leverage AI to solve pressing challenges while protecting people’s rights and safety.
     
  • Cutting the digital gender divide in half by 2030. Globally, approximately 260 million more men than women were using the internet in 2022—a divide that undermines women’s full participation in the 21st century economy. President Biden successfully secured a commitment from G20 leaders to halve the digital gender gap by 2030. To help meet this commitment, the United States announced a Women in the Digital Economy Initiative, convening partners from government, the private sector, and civil society to accelerate efforts to close the gender digital divide.
     

Improving access to digital services to boost sustainable and inclusive growth. President Biden joined other G20 leaders in taking steps towards unlocking the benefits of digital public infrastructure (DPI), stressing the importance of prioritizing secure, inclusive, and accountable approaches to DPI, built and leveraged by both the public and private sectors, that respect human rights and protect personal data, privacy, and intellectual property rights.

Civil Rights, Climate Action, Human Rights, Immigration-Migration-Refugees, Inequality, News & Photo Features

Clinton Global Initiative, Taking Place Sept. 18-19 in NYC, Focuses on Facilitating Actions that Make Tangible Difference in Lives Around the World


At the 2022 Clinton Global Initiative, themed “Taking Action Together,” President Bill Clinton, Secretary Hillary Clinton, Clinton Foundation Vice Chair Chelsea Clinton present the Clinton Global Citizen Award to long-time fighter for human, civil, workers and immigrant rights, Dolores Huerta. This year’s meeting, taking place Sept. 18-19 in NYC, will focus on what it takes to keep going—to maintain and advance progress, in spite of the difficulties that arise. © Karen Rubin/news-photos-features.com

The Clinton Global Initiative taking place in New York City September 18-19, is aimed at bringing together organizations across government, business, and civil society; established and emerging leaders; activists and advocates; and community workers and doers who are on the front lines of our most pressing global challenges, and facilitate collaborations and actions that have real impact on people’s lives around the world.

Launched by President Clinton in 2005, CGI has built a community of doers who are taking action to make a tangible difference in people’s lives around the world.

CGI works with partners to develop Commitments to Action, which are new, specific, and measurable solutions. Since 2005, more than 3,900 Commitments to Action have been launched through CGI. At the 2022 meeting, members of the CGI community launched more than 140 Commitments to Action that are now improving access to health care, advancing sustainability, creating employment opportunities, supporting refugee resettlement, and more.

President Clinton, Secretary Clinton, and Chelsea Clinton, in a letter to the CGI community,  said this year’s meeting would focus on how to “keep going” – in spite of the difficulties that arise – to build a stronger future for all.

“We all have the power to make a difference, and therefore the responsibility at least to try. This fundamental belief is what led us to call the CGI community back together in 2022. The response was remarkable: more than 2,000 leaders attended our September meeting in New York City, where more than 650 partnering organizations came together to launch more than 140 Commitments to Action – new, specific, measurable projects. All told, the CGI community has now made more than 3,900 Commitments.

“Throughout 2023, we’ve built on that momentum, convening leaders, innovators and dreamers across geographies and areas of focus to forge new partnerships and drive further action, all to achieve more durable, meaningful and yes, measurable impact. In the spring alone, we hosted events on five continents to get input from the CGI network and bring more partners into the fold—and we heard from you over and over again how important it is to reconvene CGI again this September.

“That’s why, on September 18-19, we will gather again in New York City. This year’s meeting will focus on what it takes to keep going—to maintain and advance progress, in spite of the difficulties that arise, and increase our capacity to cross the divides and make common cause with one another wherever possible to build a stronger future for all.

“At CGI’s annual meeting, we’ll hear from those who are tackling some of today’s most pressing issues, including climate change, health inequities, food insecurity, economic inequality, threats to democracy around the world, and record-breaking refugee displacement. We will examine ways to channel energy and investment to scale solutions that are already improving people’s lives, and explore how tools like AI can be responsibly harnessed for good. As always, the focus will be on what we can do, not what we can’t—and will highlight how even seemingly small actions, when taken together, can turn the tide on even our most stubborn challenges.”

At CGI 2023, President Clinton, Secretary Clinton, and Chelsea Clinton will be joined by leaders from across business, government, philanthropy, and civil society, including Noubar Afeyan, Founder and CEO, Flagship Pioneering; Co-Founder and Chairman, Moderna; Ajay Banga, World Bank President; Jason Buechel, CEO, Whole Foods; Miguel Cardona, U.S. Secretary of Education; Brian Chesky, Co-Founder and CEO, Airbnb; Daniels, Daniel Kwan and Daniel Scheinert, Directors/Writers/Producers; Philip E. Davis, Prime Minister, The Bahamas; Patrick Dempsey, Actor, Producer, Founder and Board Member of The Dempsey Center; Michael J. Fox, Founder, The Michael J. Fox Foundation for Parkinson’s Research; Maura Healey, Governor, Massachusetts; Kathy Hochul, Governor, New York; Padma Lakshmi, Host/Executive Producer of Hulu’s Taste the Nation, Writer, and UNDP Goodwill Ambassador; Tjada D’Oyen McKenna, CEO, MercyCorps; David Miliband, President and CEO, International Rescue Committee; La June Montgomery Tabron, President and CEO, W.K. Kellogg Foundation; Wes Moore, Governor, Maryland; Ngozi Okonjo-Iweala, Director-General, World Trade Organization; Noel Quinn, CEO, HSBC; J.B. Pritzker, Governor, Illinois; Liev Schreiber, Co-Founder, Blue Check Ukraine; Simon Stiell, Executive Secretary, United Nations Framework Convention on Climate Change; Darren Walker, President, Ford Foundation; will.i.am, President & Founder, i.am Angel Foundation.

Additional featured participants include Rolando Gonzalez-Bunster, Founder, President, and CEO, InterEnergy; Nicole Hockley, CEO, Sandy Hook Promise; Eugenia Kargbo, Arsht-Rock Chief Heat Officer, Freetown, Sierra Leone; Francine Katsoudas, Executive Vice President and Chief People, Policy & Purpose Officer of Cisco; Sophia Kianni, Founder and Executive Director, Climate Cardinals; Nicholas Kristof, Pulitzer Prize-Winning Journalist and Author; Peter Laugharn, President and CEO, Conrad N. Hilton Foundation; Sage Lenier, Founder & Executive Director, Sustainable & Just Future; Louise Emmanuelle Mabulo, Founder, The Cacao Project; Janet Murguía, President, UnidosUS; Vaishali Nigam-Sinha, Co-Founder & Chairperson, Sustainability, ReNew Energy Global PLC; ‘Aholotu Palu, Chief Executive of the Pacific Catastrophe Risk Insurance Company; Amy Pope, Incoming Director General of the International Organization for Migration (IOM); Keller Rinaudo Cliffton, Founder and CEO, Zipline; Lynn Forester de Rothschild, Founder & Chair, Council for Inclusive Capitalism and CEO, E.L. Rothschild; Paul Stormoen, CEO, OX2; Pete Upton, CEO and Chairperson, Native CDFI Network; Asha Varghese, President, Caterpillar Foundation; Gary White, Co-Founder, Water.org; Debra Whitman, Executive Vice President and Chief Public Policy Officer, AARP; Darrin Williams, CEO, Southern Bancorp.

Previously announced featured participants include José Andrés, Founder and Chief Feeding Officer, World Central Kitchen; Orlando Bloom, UNICEF Goodwill Ambassador; Albert Bourla, CEO, Pfizer; Jesper Brodin, Chairman and CEO, INGKA Holding; Matt Damon, Co-Founder, Water.org; Tony Elumelu, Founder and Chair, The Tony Elumelu Foundation; Ilan Goldfajn, President, Inter-American Development Bank; Filippo Grandi, United Nations High Commissioner for Refugees; Ashley Judd, Author and Goodwill Ambassador, UNFPA; Karlie Kloss, Entrepreneur and Founder of Kode With Klossy; Lorenzo P. Lewis, Founder, the Confess Project; Tsitsi Masiyiwa, Co-Founder and Chair of Higherlife Foundation and Delta Philanthropies; Cindy H. McCain, Executive Director of the World Food Programme; Ai-jen Poo, President, National Domestic Workers Alliance; Catherine Russell, Executive Director, UNICEF; Ai Weiwei, Artist; and more.

The schedule for CGI 2023, including plenary and spotlight sessions, can be found at www.clintonglobal.org/2023.

Sponsors for the CGI 2023 meeting span a broad range of supporters from business, philanthropy, and civil society. CGI is grateful for their support in building a convening that will help drive action across the major global challenges of our time. They include InterEnergy/Evergo, Domuschiev Impact, AFT, American Beverage, APCO Worldwide, Aurora Humanitarian Initiative, Beatrice Snyder Foundation, Bob and Jane Harrison, Caterpillar Foundation, Christie’s, Cisco, Dream, The EKTA Foundation, The Elevate Prize Foundation, Elizabeth Hirsh Naftali, Flagship Pioneering, Fondation Botnar, Global Education Foundation, Global Sae-A, JetBlue, Joyce Aboussie, The Marc Haas Foundation, The Masimo Foundation, Mastercard Center for Inclusive Growth, MEBO International, Pernod Ricard USA, Pfizer Inc., SAP, Tarsadia Foundation, Teena Hostovich, The Nima Taghavi Foundation, and W.K. Kellogg Foundation. In addition, Postcode Lottery Group is serving as a partner for the CGI 2023 Meeting. For the second consecutive year, decision intelligence company Morning Consult is serving as the official data partner.

The CGI 2023 Meeting will also include the return of two programs launched in 2022 – CGI Greenhouse that directly connects entrepreneurs with partnership and scaling opportunities; and the CGI Story Studio that inspires action through stories of frontline leaders and lived experiences.

You can livestream the event by registering to participate.

For schedules and information, visit www.clintonglobal.org/2023. Follow CGI on Facebook, Instagram, Threads, LinkedIn, and X, for meeting news and highlights.

Biden Administration, Economic Development, Economic Policies, Labor and Workers, President Joe Biden

FACT SHEET: Ahead of Labor Day, Biden-Harris Administration Announces New Actions to Empower Workers— Building on the President’s Historic Support for Workers and Unions

New actions announced this week empower workers to grow the economy from the middle out and the bottom up—a core pillar of Bidenomics
 

Actions Biden-Harris Administration is taking to benefit workers are resulting in higher wages for construction workers. In August, the Department of Labor (DOL) published a final rule updating the Davis-Bacon Act prevailing wage standards for the first time in nearly 40 years.  The rule affects more than one million workers constructing $200 billion in federally funded or assisted projects, who will receive higher wages over time.  Nearly all of the significant construction programs contained in President Biden’s Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act require or provide strong incentives for the use of Davis-Bacon prevailing wages—which ensures even more workers will benefit from DOL’s new rule. © Karen Rubin/news-photos-features.com

President Biden promised to be the most pro-worker and pro-union President in American history, and he has kept that promise. Support for unions is at its highest level in more than half a century, inflation-adjusted income is up 3.5% since the President took office, and the largest wage gains over the last two years have gone to the lowest-paid workers. The unemployment rate is near a 50-year low, and a greater share of working-age people have a job today than at any other time in more than two decades. Under the leadership of the Biden-Harris Administration, all workers—including those who are often left behind in recoveries—are experiencing record-low unemployment rates. 

Under Bidenomics, America is seeing a historic level of public and private investment in manufacturing and new industries that will create good-paying jobs that Americans can raise a family on and build a community around. The President continues to fight to ensure all Americans get fair pay for a hard day’s work and have a free and fair choice to join a union.

In advance of Labor Day, the Biden-Harris Administration is announcing new actions this week to empower workers by investing in America’s clean energy workforce, establishing pathways into high-paying and union jobs, demonstrating the benefits of unions, and extending critical wage protections.  These actions include:

Ensuring Clean Energy Investments Support High-Quality and Union Jobs

  • Creating good-paying jobs in clean energy.  The Department of the Treasury and the Internal Revenue Service published a historic proposed rule to support good-paying jobs and workforce development made possible by incentives in the Inflation Reduction Act (IRA).  Many of the IRA’s clean energy deployment tax incentives are increased by five times if taxpayers pay workers prevailing wages and use Registered Apprentices. The Notice of Proposed Rulemaking (NPRM) provides clarity about how these incentives work, including penalty and correction provisions for those who fail to meet the requirements, and promotes worker-centric practices.  The NPRM also encourages the use of qualifying Project Labor Agreements, which guarantee workers good-paying jobs, help construction contractors finish complex projects on time and on budget, and can establish equitable pathways into construction careers.
     
  • Supporting a fair and just electric vehicle transition.  The Department of Energy opened applications for the $2 billion Domestic Manufacturing Conversion Grants program, created by the IRA. The program will provide funding for auto manufacturers transitioning from internal combustion engine vehicles and components to electric vehicles and components. In line with the President’s call for a transition that protects workers, this program will prioritize applications from facilities that are at risk of closing or recently closed and reward applicants that retain existing workers, have strong labor partnerships, pay high wages, and convert facilities while remaining in the same community.  The Department of Energy Loan Programs Office is also facilitating access to $10 billion in capital for auto factory conversions.  The Office plans to prioritize the review of applications for projects in locations with a long history of auto manufacturing and demonstrate strong workforce practices and labor standards.

Strengthening electric vehicle (EV) battery supply chains and supporting high-quality jobs, including for auto workers.  The Department of Energy is releasing a second-round Notice of Intent for $3.5 billion for the Battery Manufacturing grant programs under the Bipartisan Infrastructure Law.  The program will help expand domestic manufacturing of batteries for electric vehicles and the nation’s grid, as well as for battery materials and components currently imported from other countries.  This Notice of Intent outlines the direction for the next phase of the program, which will support communities with experienced auto workers and a history of producing vehicles, applicants with strong workforce practices, and applicants who plan to create high-quality jobs.

Demonstrating the Union Advantage

  • Conducting analysis on how unions benefit the economy.  The Department of the Treasury released a first-of-its-kind report that finds that unions help grow the economy by reducing inequality, raising incomes, increasing savings (including retirement savings), and broadening homeownership.  According to the report, which was released as part of the White House Task Force on Worker Organizing and Empowerment chaired by Vice President Kamala Harris, union members make higher wages and are more likely to earn critical benefits like retirement, health care, child care, life insurance, and sick leave.  The report also finds that all workers—even non-union workers and workers who have been laid off—experience gains from greater unionization.

Extending Overtime Protections

  • Proposing new rules that would provide millions of workers with overtime protections.  The Department of Labor released a proposed rule to increase the overtime salary threshold from under $36,000 per year to roughly $55,000 per year.  Under this proposal, more salaried employees making less than $55,000 per year and working more than 40 hours a week would receive at least one and one-half times their regular rates of pay for the overtime hours they work.  The proposed rule would extend overtime pay to as many as 3.6 million hardworking Americans.

These actions build on historic support for workers and unions since Day One of the Biden-Harris Administration, including:

Increasing Wages

  • Raising wages for construction workers. In August, the Department of Labor (DOL) published a final rule updating the Davis-Bacon Act prevailing wage standards for the first time in nearly 40 years.  The rule affects more than one million workers constructing $200 billion in federally funded or assisted projects, who will receive higher wages over time.  Nearly all of the significant construction programs contained in President Biden’s Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act require or provide strong incentives for the use of Davis-Bacon prevailing wages—which ensures even more workers will benefit from DOL’s new rule.
     
  • Protecting workers’ pay.  The Biden-Harris Administration has recovered more than $690 million for more than 440,000 low-paid workers across the nation.  The Administration enforces laws that protect these workers from being victims of wage theft and exploitation when they were not paid minimum wages or hard-earned overtime wages, were denied their tips, or were misclassified as independent contractors.

Supporting Workers’ Right to Organize

  • Empowering workers through education.  Recently, the Department of Labor relaunched the Worker Organizing Resource and Knowledge (WORK) Center.  The WORK Center is the federal government’s premiere online resource center providing information about labor unions and their importance to workers and communities.  While more than half of non-union workers say they want a union, only about 10 percent of these workers say they know how to form one.  The WORK Center meets the needs of workers who are seeking more information about their labor rights and lack experience in organizing.
     
  • Disclosing when federal contractors hire union avoidance advisors.  In July, the Department of Labor published a final regulation updating the LM-10 form, a form that employers must file disclosing whether they pay consultants to persuade workers concerning their organizing and collective bargaining rights or to surveil activities of employees and unions involved in labor disputes. The rule newly requires private-sector employers to indicate whether they are federal contractors or subcontractors, promoting transparency for workers and the federal government into whether contractors hire anti-union consultants. 

Expanding Workforce Development

  • Making historic investment in Registered Apprenticeships.  All Americans should have a pathway to good-paying jobs, which is why the Biden-Harris Administration invested a historic $285 million in Registered Apprenticeships in fiscal year (FY) 2023 and, in July, awarded more than $65 million in grants to 45 states to expand and diversify Registered Apprenticeships in high-demand industries.  The Administration also launched the Apprenticeship Ambassadors Initiative to amplify the Registered Apprenticeship model with private- and public-sector employers.
     
  • Launching Investing in America Workforce Hubs.  In May, the Biden-Harris Administration launched new initiatives to train and connect more workers to the good-paying jobs—including union jobs—created by the President’s Investing in America investments. Through the Workforce Hubs Initiative, the Administration is partnering with local officials, employers, unions, community colleges, and other stakeholders to ensure a diverse and skilled workforce is ready to meet the demand for labor driven by historic public and private investments in five Hubs—Phoenix, Columbus, Baltimore, Augusta, and Pittsburgh.

Fostering Equal Employment Opportunities

  • Increasing access to good construction jobs for underrepresented workers.  In March, the Department of Labor launched the Mega Construction Project (Megaproject) Program, initially designating as Megaprojects 12 Bipartisan Infrastructure Law-funded projects across the country. The Megaprojects Program provides free, continuous, on-the-ground assistance to help construction project owners, contractors, and unions ensure equal employment opportunities for underrepresented workers. Also in March, the Department of Labor announced a $20 million cooperative agreement with TradesFutures for the Scaling Apprenticeship Readiness Across the Building Trades Initiative, in partnership with the National Urban League.  This first-of-its-kind initiative aims to substantially increase the number of participants from underrepresented populations and underserved communities in Registered Apprenticeship programs in the construction industry.
     
  • Expanding access to child care and long-term care. In April, President Biden issued an Executive Order with more than 50 actions to increase access to high-quality care and better support caregivers. The Executive Order directs all cabinet-level agencies with federal job-creation funds—including from his Investing in America agenda—to consider requiring or encouraging grantees to use funds for supportive services, including child care and long-term care, to the maximum extent allowable. This action will help ensure underserved workers can enroll in, remain in, and complete training, and transition to good jobs, including union jobs. This builds on the first-of-its-kind requirement that employers seeking significant federal funds under the CHIPS and Science Act provide a concrete plan to help their employees access affordable child care, enabling more parents from local communities to access good-paying jobs. 

In his Labor Day Proclamation, President Biden declared:

     American workers are the best in the world, but over the past few decades, too many leaders embraced an economic theory that failed them and our unions.  It is called trickle-down economics.  It is the belief that we should cut taxes for the wealthy and big corporations and wait for the benefits to trickle down to workers and American families.  It is a belief that we should shrink public investment in infrastructure and public education.  It is a tax policy that encourages corporations to move operations and jobs overseas.  

     Trickle-down policies slashed investments in people and communities and allowed big corporations to amass more power while limiting the ability of workers to join unions.  It did not matter where companies made things, as long as it helped their bottom line — even if it meant losing the very workers who had helped them succeed.  Companies cut staff, shipped good jobs overseas, prioritized cheap labor, and silenced workers’ voices.  As a result, factories and businesses across the country shut down, entire communities were hollowed out, and for many working people, a path to better their circumstances would never be within reach.  People working as hard as ever could not get ahead because it was harder to buy a home, pay for a college education, start a business, and retire with dignity.  The moment we embraced trickle-down economics, we walked away from who we are and from the way our Nation was built.

     I knew our Nation could not continue with those same failed policies, so I came into office determined to build an economy that grows from the middle out and bottom up, not the top down.  And it is working.  We have added over 13 million jobs, including 800,000 manufacturing jobs.  We added more jobs in my first two years than any President in a single 4-year term because we are investing in America and Americans again.

     The Bipartisan Infrastructure Law I signed is a once-in-a-generation investment that puts Americans to work rebuilding our Nation’s infrastructure using American-made materials.  We have announced nearly 37,000 new projects since we passed the bill.  For me, it was a top priority that the overwhelming majority of these investments be covered by Davis-Bacon prevailing wage requirements to make sure the hundreds of thousands of jobs we create are good-paying jobs. 

     We passed the CHIPS and Science Act to bring semiconductor manufacturing back to American shores and ensure that the United States leads the world in innovation.  It has attracted over $166 billion in investment and ignited a semiconductor manufacturing boom.  Our Inflation Reduction Act helps build the clean energy industries of the future here at home while incentivizing companies to adopt strong labor standards.  Our American Rescue Plan includes funding to protect over two million union workers, retirees, and their families from benefit cuts to the pensions they have earned.  All of these investments mean good-paying jobs that American workers can raise their families on, many of which do not require a 4-year college degree.

     By investing more in Registered Apprenticeships and in career and technical education programs than any previous administration, we are ensuring that every American — from every region and background — can access the training and education needed to participate in our Nation’s economic prosperity.  My Administration is working to crack down on non-compete agreements that keep 30 million Americans from taking new jobs with higher wages in their field.  We are taking action to protect workers’ health and safety from hazards they may be exposed to on the job, such as silica dust and other toxic materials.  And my Administration is empowering American workers and giving working families some breathing room by bringing the cost of prescription drugs and health care down for millions of Americans. 

     I promised to be the most pro-union President in history, and I firmly believe that every worker in America should have the free and fair choice to join a union or organize and bargain collectively with their employer without coercion or intimidation.  That is because when organized labor wins, our Nation wins.  My Administration will continue to support and encourage labor unions so that workers have a seat at the decision-making table, an opportunity to speak truth to power, and the support to fight for the dignity and respect they deserve.  

     On Labor Day, we stand in solidarity with all the workers who lift our Nation to new heights and all the labor unions who give all workers power and voice.  May we continue working to restore the American Dream for every person willing to work hard in our Nation by embracing what has always been the foundation of our country’s success:  investing in America and American workers. 

Biden Administration, Gun Violence Prevention, News & Photo Features

FACT SHEET: Biden-Harris Administration Takes Another Life-Saving Step to Keep Guns Out of Dangerous Hands

March for Our Lives, Washington DC, 2018. Amid yet another senseless shooting on college campus and racist-motivated murders at a Jacksonville, Florida grocery store, concern as students start another school year, and as the number of mass shootings continue to hit records, with 120 people dying each day from gun violence, President Biden is taking life-saving action to reduce the number of guns sold without background checks and keep guns out of the hands of criminals. © Karen Rubin/news-photos-features.com

Amid yet another senseless shooting on college campus and racist-motivated murders at a Jacksonville, Florida grocery store, concern as students start another school year, and as the number of mass shootings continue to hit new records, with 120 people dying each day from gun violence, President Biden is taking life-saving action to reduce the number of guns sold without background checks and keep guns out of the hands of criminals. – Karen Rubin/news-photos-features.com

In March, President Biden signed an Executive Order directing the Attorney General to move as close to universal background checks as possible within existing law. Today, as a result of the Executive Order and the Bipartisan Safer Communities Act, the Department of Justice is taking life-saving action to reduce the number of guns sold without background checks and keep guns out of the hands of criminals.
 
Why the Biden-Harris Administration is Taking Action
 
Since 1994, federal law has required federally licensed firearms dealers to run background checks prior to selling or transferring a weapon. These background checks have helped keep guns out of the hands of more than three million felons, convicted domestic abusers, and other dangerous individuals. However, despite the law, individuals who should be licensed dealers have refused to obtain a license, skirting the background check requirement.
 
Last year, Congress passed and President Biden signed into law bipartisan legislation to help address this dangerous problem by modifying the definition of who has to become a federally licensed firearms dealer. Members of Congress—both Democrats and Republicans—made clear that they intended for the Bipartisan Safer Communities Act to better protect the American people from gun violence by clarifying when someone is supposed to become a licensed firearms dealer.
 
New Action to Keep Guns Out of Dangerous Hands
 
Today, the Justice Department has announced a proposed rule to specify what exactly the new definition in the Bipartisan Safer Communities Act means on the ground. If finalized, this proposed rule would mean the following for people who are not selling guns in order to make money: If you have a gun you no longer need, and you want to sell it to your family member, you do not need a license to sell it. If you buy and sell curios or relics or “collectible” personal firearms as a hobby, again, you do not need a license. But, if you are offering a firearm for sale to make money, and telling a customer that you can purchase and sell him additional firearms, you would presumptively need a license—and need to run background checks. The same is true if you repetitively offer for resale firearms within 30 days of when you purchased them. The proposed rule includes a number of other situations where, in civil and administrative proceedings and absent reliable evidence to the contrary, it will be presumed that you need a license.
 
Specifically, the proposed rule, if finalized, would clarify that an individual would be presumed to be “engaged in the business” of dealing in firearms—and therefore be required to become a licensed firearms dealer and run background checks—if they meet certain conditions. For example, under the proposed rule, a person would be presumed to be required to become a licensed dealer and run background checks if they meet one or more of the following criteria:

  • Offer for sale any number of firearms and also represents to potential buyers that they are willing and able to purchase and sell them additional firearms;
    • Repetitively offer for sale firearms within 30 days after they were purchased;
       
    • Repetitively offer for sale firearms that are like new in their original packaging;
       
    • Repetitively offer for sale multiple firearms of the same make and model; or
       
    • As a formerly federally-licensed firearms dealer, sell firearms that were in the business inventory and not transferred to a personal collection at least a year before the sale, addressing the so-called “fire sale loophole.”

 The proposed rule would also clarify that, for civil or administrative actions, an individual would be presumed to have the intent to “predominantly earn a profit”—one of the elements of engaging in the business of dealing firearms—if the person engages in activities such as:

  • Creating a website or making business cards to advertise or market a firearms business;
    • Maintaining records to document and track profits and losses from firearms purchases or sales; or 
  • Purchasing business insurance or renting space at a gun show.

The proposed rule would make clear that there is no “gun show loophole” or “internet loophole” in federal law. Dealers who engage in the business of selling guns are required to obtain a license and run background checks no matter where they engage in the business of buying and selling firearms. That include at gun shows and over the Internet.

The proposed rule is now open for public comment.  The Department of Justice will consider the comments it receives in deciding on a final rule.

Continuing to Call on Congress to Act
 
This rule is a significant step toward reducing the percentage of firearms sold for profit without background checks. It builds on previous Biden-Harris Administration actions to save lives and combat the epidemic of gun violence.
 
However, to fully address this problem, Congress must act. The President continues to call on Congress to enact universal background checks legislation, as well as other commonsense legislation to ban assault weapons and high-capacity magazines, require safe storage of guns, and end immunity from liability for gun manufacturers. These are life-saving measures that the vast majority of Americans and gun owners support to protect our Country from the threat of gun violence.

“It is a false choice to suggest that we have to choose between either supporting the Second Amendment or passing reasonable gun safety laws – we can do both. All people in every community across our Nation have a right to be safe. This proposed regulation will help realize that goal and save lives,” Vice President Kamala Harris stated.
 
“But there is more to do. Congress must pass legislation to ban assault weapons and high-capacity magazines, require safe gun storage, end immunity from liability for gun manufacturers, and require background checks on all gun sales—even those by gun dealers who are not registered. The President and I will not stop fighting to end this Nation’s epidemic of gun violence.”


Biden Administration, Health Care, News & Photo Features

Biden Administration Takes Historic Step to Lower Cost of Prescription Drugs for Medicare, Medicaid

For the first time, thanks to President Biden’s Inflation Reduction Act – the historic law lowering health care costs – Medicare is able to negotiate the prices of prescription drugs. HHS released the list of the first 10 drugs that it will negotiate prices for.When implemented, prices on negotiated drugs will decrease for up to 9 million seniors. These seniors currently pay up to $6,497 in out-of-pocket costs per year for these prescriptions. In addition, the nonpartisan Congressional Budget Office reports that this will save taxpayers $160 billion by reducing how much Medicare pays for drugs through negotiation and inflation rebates. © Karen Rubin/news-photos-features.com

In the immortal words of President Biden as VP when President Obama signed the Affordable Care Act (Obamacare) into law, this is a big f—kg deal.

For the first time, thanks to President Biden’s Inflation Reduction Act – the historic law lowering health care costs – Medicare is able to negotiate the prices of prescription drugs.

Today, the U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced the first 10 drugs covered under Medicare Part D selected for negotiation. The negotiations with participating drug companies will occur in 2023 and 2024, and any negotiated prices will become effective beginning in 2026. Medicare enrollees taking the 10 drugs covered under Part D selected for negotiation paid a total of $3.4 billion in out-of-pocket costs in 2022 for these drugs. 

“For far too long, pharmaceutical companies have made record profits while American families were saddled with record prices and unable to afford life-saving prescription drugs. But thanks to the landmark Inflation Reduction Act, we are closer to reaching President Biden’s goal of increasing availability and lowering prescription drug costs for all Americans,” said HHS Secretary Xavier Becerra. “Although drug companies are attempting to block Medicare from being able to negotiate for better drug prices, we will not be deterred. The Biden-Harris Administration will continue working to ensure that Americans with Medicare have access to innovative, life-saving treatments at lower costs.”

The Biden-Harris Administration has made lowering prescription drug costs and improving access to innovative therapies a key priority. Alongside other provisions in the new law that increase the affordability of health care and prescription drugs, allowing Medicare to negotiate prescription drug prices will strengthen the program’s ability to serve people with Medicare now and for generations to come. The negotiation process will consider the selected drug’s clinical benefit, the extent to which it fulfills an unmet medical need, and its impact on people who rely on Medicare, among other considerations, such as costs associated with research and development as well as production and distribution for selected drugs. As a result of negotiations, people with Medicare will have access to innovative, life-saving treatments at lower costs to Medicare.

The selected drug list for the first round of negotiation is:

  • Eliquis
    • Jardiance
    • Xarelto
    • Januvia
    • Farxiga
    • Entresto
    • Enbrel
    • Imbruvica
    • Stelara
    • Fiasp; Fiasp FlexTouch; Fiasp PenFill; NovoLog; NovoLog FlexPen; NovoLog PenFill

These selected drugs accounted for $50.5 billion in total Part D gross covered prescription drug costs, or about 20%, of total Part D gross covered prescription drug costs between June 1, 2022 and May 31, 2023, which is the time period used to determine which drugs were eligible for negotiation. CMS will publish any agreed-upon negotiated prices for the selected drugs by September 1, 2024; those prices will come into effect starting January 1, 2026. In future years, CMS will select for negotiation up to 15 more drugs covered under Part D for 2027, up to 15 more drugs for 2028 (including drugs covered under Part B and Part D), and up to 20 more drugs for each year after that, as outlined in the Inflation Reduction Act.

“We’ve reached this milestone because of the Inflation Reduction Act– one of the most significant laws ever enacted, and one that passed with the leadership of Democrats in Congress,” President Biden stated. “We took on Big Pharma and special interests, overcoming opposition from every Republican in Congress, and the American people won.”

When implemented, prices on negotiated drugs will decrease for up to 9 million seniors. These seniors currently pay up to $6,497 in out-of-pocket costs per year for these prescriptions. In addition, the nonpartisan Congressional Budget Office reports that this will save taxpayers $160 billion by reducing how much Medicare pays for drugs through negotiation and inflation rebates.

“This plan is a key part of Bidenomics, my economic vision for growing the economy from the middle out and the bottom up – not the top down. And it’s working.,” Biden stated. “That’s why Big Pharma has already filed eight lawsuits against my Administration, and spent nearly $400 million last year to try to stop our progress. Let me be clear: I am not backing down. There is no reason why Americans should be forced to pay more than any developed nation for life-saving prescriptions just to pad Big Pharma’s pockets. For many Americans, the cost of one drug is the difference between life and death, dignity and dependence, hope and fear. That is why we will continue the fight to lower healthcare costs – and we will not stop until we finish the job.”

HHS Announces First Set of Drugs Selected for Medicare Price Negotiation

For the first time ever, HHS announced ten drugs selected for Medicare drug price negotiation:
 

Drug NameCommonly Treated ConditionsTotal Part D Gross Covered Prescription Drug Costs from June 2022-May 2023Number of Medicare Part D Enrollees Who Used the Drug from June 2022-May 2023Average Part D Covered Prescription Drug Costs Per Enrollee
EliquisPrevention and treatment of blood clots$16,482,621,0003,706,000$4,448
JardianceDiabetes; Heart failure$7,057,707,0001,573,000$4,487
XareltoPrevention and treatment of blood clots; Reduction of risk for patients with coronary or peripheral artery disease$6,031,393,0001,337,000$4,511
JanuviaDiabetes$4,087,081,000869,000$4,703
FarxigaDiabetes; Heart failure; Chronic kidney disease$3,268,329,000799,000$4,091
EntrestoHeart failure$2,884,877,000587,000$4,915
EnbrelRheumatoid arthritis; Psoriasis; Psoriatic arthritis$2,791,105,00048,000$58,148
ImbruvicaBlood cancers$2,663,560,00020,000$133,178
StelaraPsoriasis; Psoriatic arthritis; Crohn’s disease; Ulcerative colitis$2,638,929,00022,000$119,951
Fiasp; Fiasp FlexTouch; Fiasp PenFill;
NovoLog; NovoLog FlexPen; NovoLog PenFill		Diabetes$2,576,586,000777,000$3,316

 
[Source: CMS, https://www.cms.gov/files/document/fact-sheet-medicare-selected-drug-negotiation-list-ipay-2026.pdf]

These ten drugs are among those with highest total spending in Medicare Part D – $50 billion in total part D gross covered drug cost s- or 20% of total part D gross covered drug costs june 1, 2022, may 31, 2023. More than 8 million Part D enrollees depend on these vital treatments to treat life-threatening conditions including diabetes, heart failure, and cancer, but many struggle to access their medications because of prohibitive costs.

Medicare drug price negotiation will result in lower out-of-pocket costs for seniors and will save money for American taxpayers. Negotiations for the first group of selected drugs will begin in 2023, with negotiated prices going into effect in 2026.

Out-of-Pocket Costs for Drugs Covered Under Part D Selected for Drug Price Negotiation, by State

Today HHS also released a report showing that 9 million Medicare Part D enrollees took the drugs covered under Part D selected for negotiation and paid a total of $3.4 billion in out-of-pocket costs for these drugs in 2022.  For enrollees without additional financial assistance, average annual out-of-pocket costs for these drugs were as high as $6,497 per enrollee in 2022.

To view a state-by-state breakdown of the number of Medicare enrollees who use the prescription drugs selected for negotiation and their out-of-pocket costs, visit HHS’s website.

Continuing to Lower Prescription Drug Costs

Every day, millions of seniors are saving money on prescription drug costs because of the Biden Administration’s actions. People with Medicare are saving an average of $70 in out-of-pocket costs on vaccines like shingles and Tdap because President Biden’s Inflation Reduction Act made recommended vaccines free for beneficiaries starting this past January. Nearly four million seniors and others on Medicare with diabetes started to see their insulin costs capped at $35 per month this past January, saving some seniors hundreds of dollars for a month’s supply. And some seniors taking drugs covered under Part B for which manufacturers have hiked prices faster than inflation are saving up to $449 in lower coinsurance this quarter thanks to the new Medicare inflation rebates.

People with Medicare will continue to see their prescription drug costs go down as more provisions of the Inflation Reduction Act go into effect in the coming years. Part D enrollees will no longer pay 5% co-insurance when they reach the catastrophic phase of their benefit starting in 2024. Nearly 19 million seniors and other Part D beneficiaries are projected to save $400 per year on prescription drugs when the out-of-pocket cap drops to $2,000 in 2025, and 1.9 million enrollees with the highest drug costs will save an average of $2,500 per year. And the lower prices negotiated for the high-spend drugs selected today will go into effect in 2026.

The President’s Budget for Fiscal Year 2024 builds upon the Inflation Reduction Act to continue lowering the cost of prescription drugs. For Medicare, this includes further expanding the newly established negotiation authority by extending it to more drugs and bringing drugs into negotiation sooner after they launch. The Budget also includes proposals to curb inflation in prescription drug prices and cap the prices of insulin products at $35 for a monthly prescription in the commercial market to lower drug costs for all Americans.

The ability to negotiate drug prices is historic. For decades, Big Pharma lobbyists (three for every one member of Congress) and Congressional Republicans stopped Medicare from saving taxpaying, hardworking families money by negotiating lower drug costs.

The result of that blockade was that Americans were forced to pay the highest prices for medicines in the world, despite the fact that taxpayers subsidize Big Pharma’s research and development.

“This is a game-changer for Americans who are being overcharged for medicines they need and a game-changer for Medicare because it will spend less taxpayer money to deliver the same benefits,” stated Deputy Press Secretary and Senior Communications Adviser Andrew Bates.

“This comes after President Biden also beat Big Pharma by capping the price of insulin at $35 per month for Medicare recipients. Big Pharma has spent nearly $400 million lobbying to stop these reforms.”

However, as the Biden Administration takes these newest historic actions to lower drug costs for Americans and strengthen Medicare, Congressional Republicans continue to side with Big Pharma’s price gouging and cuts to Medicare benefits instead.

Not only do congressional Republicans want to take the new benefits being announced today away from Americans with repeal legislation (just as they spent years trying to repeal the Affordable Care Act – Obamacare) – they are even siding with Big Pharma’s lawsuits to stop them in their tracks, Bates said.

Congressman Morgan Griffith endorsed their suits, saying, “every drug manufacturer probably ought to sue because it is, on its face, an unconstitutional taking.”

And reporters have frequently noted that in their opposition to this breakthrough for seniors, congressional Republicans are parroting Big Pharma’s talking points and “echoing arguments the pharmaceutical industry has made for years.”  

After unsuccessfully voting to block President Biden’s plan to let Medicare negotiate lower drug costs, Congressional Republicans have sought to repeal it, in alignment with Big Pharma. In the midterms, they campaigned on repealing Medicare’s new power but shut their ears to voters’ message back to them.

This summer alone, the Republican Study Committee, which represents over three quarters of House Republicans, unveiled yet another repeal plan.

The handouts Congressional Republicans are pursuing for Big Pharma would explode our deficit, weaken Medicare, and subject more American seniors and families to price gouging for life-saving medicines, Bates said. 

“Across the board, the hallmark of congressional Republicans’ trickle-down economic agenda is to increase costs and financial burdens shouldered by hardworking Americans in exchange for welfare payoffs to the super rich and multinational corporations. In this case, Big Pharma.

“Their philosophy is the polar opposite of Bidenomics, which is based on rewarding hard work and growing our economy by growing the middle class. Not leaching off the middle class for an extreme rightwing scheme to redistribute income upward.   

“We should be bolstering Medicare’s ability to lower drug costs for families, instead of trying to erase them.

“This fight is far from over. President Biden is pushing to expand Medicare’s capacity to negotiate lower drug costs, which he released a concrete plan for in his budget,” Bates said.

Biden Administration, Education, Financial Protection

FACT SHEET: Biden-Harris Administration Launches SAVE Plan to Lower Monthly Student Loan Payments for Millions of Borrowers

 “I am a firm believer in education beyond high school —- and that should be a ticket to the middle-class, not a burden that weighs people down for decades to come trying to pay their debt,” declared President Biden, introducing the SAVE Plan to reduce student debt. “On Day One of my Administration, I promised to fix the problems of the existing student loan program that hurt borrowers for much too long. And I’m proud we’re keeping that promise.” © Karen Rubin/goingplacesfarandnear.com

The Biden-Harris Administration believes that education beyond high school should unlock doors to opportunity, not leave borrowers stranded with debt they cannot afford. That’s why, from day one, President Biden and Vice President Harris have been working to fix the broken student loan system and make college more affordable. Today, the Biden-Harris Administration announced the official launch of the most affordable repayment plan ever created – the Saving on a Valuable Education (SAVE) plan and kicked off an outreach campaign to encourage eligible borrowers to sign up for the plan.

“On Day One of my Administration, I promised to fix the problems of the existing student loan program that hurt borrowers for much too long.
And I’m proud we’re keeping that promise,” President Biden declared. “We’ve already approved over $116 billion in debt cancellation for 3.4 million Americans, no matter how many lawsuits, challenges, or roadblocks Republican elected officials or special interests tried to put in our way. And today I’m proud to announce a new program called the SAVE Plan. It’s the most affordable student loan plan ever.”
 
The SAVE plan is an income-driven repayment (IDR) plan that calculates payments based on a borrower’s income and family size – not their loan balance – and forgives remaining balances after a certain number of years. The SAVE plan will cut many borrowers’ monthly payments to zero, will save other borrowers around $1,000 per year, will prevent balances from growing because of unpaid interest, and will get more borrowers closer to forgiveness faster. The SAVE plan builds on the actions the Biden-Harris Administration has already taken to support students and borrowers, including cancelling more than $116 billion in student loan debt for 3.4 million Americans. 
 
The Biden-Harris Administration estimates that over 20 million borrowers could benefit from the SAVE plan. Borrowers can sign up today by visiting StudentAid.gov/SAVE
 
Specifically, the SAVE plan will:

  • Cut payments on undergraduate loans in half. Borrowers with undergraduate loans will have their payments reduced from 10% to 5% of their discretionary income. Those who have undergraduate and graduate loans will pay a weighted average between 5% and 10% of their income based upon the original principal balances of their loans.
    • Bring many borrowers’ loan payments to $0 per month. A borrower’s monthly payment amount is based on their discretionary income—defined under the SAVE plan as the difference between their adjusted gross income (AGI) and 225% of the U.S. Department of Health and Human Services Poverty Guideline amount for their family size. This means a single borrower who makes about $15 an hour will not have to make any monthly payments. Borrowers earning above that amount would save around $1,000 a year on their payments compared to other IDR plans. The Department of Education estimates that more than 1 million additional low-income borrowers will qualify for a $0 payment. This will allow them to focus on food, rent, and other basic needs instead of loan payments.
       
    • Ensure that borrowers never see their balance grow as long as they keep up with their required payments. The Department of Education will stop charging any monthly interest not covered by the borrower’s payment on the SAVE plan. As a result, borrowers who pay what they owe on this plan will no longer see their loans grow due to unpaid interest. For example, if a borrower has $50 in interest that accumulates each month and their payment is $30 per month under the new SAVE plan, the remaining $20 would not be charged as long as they make their $30 monthly payment. The Department of Education estimates that 70 percent of borrowers who were on an IDR plan before the payment pause would stand to benefit from this change. Coinciding with the launch of the SAVE plan, the White House Council of Economic Advisers released a new blog post that models how the income benefit of the SAVE plan could prevent a lower-income borrowers’ balance from increasing by nearly 78% over a 20-year repayment period.
       
    • Provide early forgiveness for low-balance borrowers. IDR plans require all borrowers, even those who only attended school for a single term, to repay their loans for at least 20 or 25 years before receiving forgiveness of any outstanding balance. Under the SAVE plan, borrowers whose original principal balances were $12,000 or less will receive forgiveness after 120 payments (the equivalent of 10 years in repayment). For each additional $1,000 borrowed above that level, the plan adds an additional 12 payments (equivalent of 1 year of payments) for up to a maximum of 20 or 25 years. For example, if a borrower’s original principal balance is $14,000, they will see forgiveness after 12 years. Payments made previously (before 2024) and those made going forward will count toward these maximum forgiveness timeframes.

The benefits of the SAVE plan will be particularly critical for low- and middle-income borrowers, community college students, and borrowers who work in public service. Overall, the Department of Education estimates that the plan will have the following effects for future cohorts of borrowers compared to the IDR plan, called the Revised Pay-As-You-Earn (REPAYE) plan:

  • Borrowers will see their total payments per dollar borrowed fall by 40%. Borrowers with the lowest projected lifetime earnings will see payments per dollar borrowed fall by 83%, while those in the top would only see a 5% reduction.
    • A typical graduate of a four-year public university will save nearly $2,000 a year.
    • A first-year teacher with a bachelor’s degree will see a two-third reduction in total payments, saving more than $17,000, while pursuing Public Service Loan Forgiveness.
    • 85% of community college borrowers will be debt-free within 10 years because of the early forgiveness for low-balance borrowers provision of the plan.
    • On average, Black, Hispanic, American Indian and Alaska Native borrowers will see their total lifetime payments per dollar borrowed cut in half.

Borrowers who are already on the REPAYE plan will be automatically enrolled in the SAVE plan and see their payments automatically adjust with no action on their part.
 
Department of Education Launches Outreach Campaign

To encourage borrowers to sign up for the new SAVE plan, the Department of Education is partnering with grassroots organizations to launch an outreach campaign, “SAVE on Student Debt”. The campaign will leverage strategic partnerships across public, private, and nonprofit sectors to help borrowers take full advantage of the benefits provided by the SAVE plan, as well as ensure borrowers know about other resources and debt forgiveness programs available from the Department. This partnership will be led by the Department in collaboration with Civic Nation, the National Association for the Advancement of Colored People (NAACP), the National Urban League (NUL), Rise, the Student Debt Crisis Center, UnidosUS, and Young Invincibles.
 
The outreach campaign will build on the direct outreach underway by the Department of Education and Federal Student Aid to ensure borrowers know about the SAVE plan and other programs to help them access debt relief. In the coming days, the Department will contact nearly 30 million borrowers to invite them to apply for the SAVE plan. The direct-to-borrower communication will highlight how the new IDR application takes less than 10 minutes to fill out. The “SAVE on Student Debt” campaign and direct-to-borrower communications will also focus on enrolling borrowers into SAVE who will benefit the most from the plan but are often hardest to reach. Importantly, the new SAVE plan lowers barriers that previously stood in the way of higher enrollment rates of other IDR plans by streamlining repayment options, automatically enrolling delinquent borrowers who have given consent to access their tax information into the plan, and eliminating the need to manually recertify their income each year. This is part of the Department’s broader improvements to the student loan system and robust outreach campaign to support borrowers when the payment pause ends this fall.
 
Broader Efforts to Deliver Relief to Student Loan Borrowers

The SAVE plan builds on broader actions by the Biden-Harris Administration to deliver relief to student loan borrowers, fix problems in the student loan system, and make college more affordable. To date, the Biden-Harris Administration has cancelled more than $116 billion in student loan debt for 3.4 million Americans, including:

  • $39 billion for 804,000 borrowers as a result of fixes to IDR plans who have been in repayment for over 20 years but never got the relief they deserved
    • $45.7 billion for 662,000 public service workers
    • $10.5 billion for 491,000 borrowers who have a total and permanent disability; and
    • $22 billion for nearly 1.3 million borrowers who were cheated by their schools, saw their schools precipitously close, or are covered by related court settlements.

The Administration has also achieved the largest increases in Pell Grants in over a decade to help families who earn less than roughly $60,000 per year; fixed the Public Service Loan Forgiveness program so borrowers who go into public service get the debt relief they are entitled to; is holding colleges accountable for leaving students with mountains of debt and without good job prospects; and announced that it is pursuing an alternative path to deliver debt relief to as many student loan borrowers as possible, as quickly as possible in the wake of the Supreme Court’s decision on the Administration’s student debt relief plan.

Biden Administration, Cybersecurity, Education, News & Photo Features

Biden-Harris Administration Launches New Efforts to Strengthen America’s K-12 Schools’ Cybersecurity

Biden-Harris Administration announces new actions and private commitments to bolster the nation’s cyber defense at schools and protect American families
 
Administration leaders, school administrators, educators, and education technology providers will convene at the White House to discuss how to strengthen the nation’s schools’ cybersecurity amidst growing ransomware attacks
 

Biden-Harris Administration announced new actions and private commitments to bolster the nation’s cyber defense at schools and protect American families © Karen Rubin/news-photos-features.com

The United States has experienced an increase in cyberattacks that have targeted the nation’s schools in recent years.  In the 2022-23 academic year alone, at least eight K-12 school districts throughout the country were impacted by significant cyberattacks – four of which left schools having to cancel classes or close completely.  Not only have these attacks disrupted school operations, but they also have impacted students, their families, teachers, and administrators.  Sensitive personal information – including, student grades, medical records, documented home issues, behavioral information, and financial information – of students and employees were stolen and publicly disclosed. Additionally, sensitive information about school security systems was leaked online as a result of these attacks.

Secretary of Education Miguel Cardona and Secretary of Homeland Security Alejandro Mayorkas, joined First Lady Jill Biden, to convene school administrators, educators and private sector companies to discuss best practices and new resources available to strengthen our schools’ cybersecurity, protect American families and schools, and prevent cyberattacks from disrupting our classrooms.
 
According to a 2022 U.S. Government Accountability Office report, the loss of learning following a cyberattack ranged from three days to three weeks, and recovery time can take anywhere from two to nine months.  Further, the monetary losses to school districts following a cyber incident ranged from $50,000 to $1 million. That is why the Biden-Harris Administration has had a relentless focus on securing our nation’s critical infrastructure since day one, and continues to work tirelessly to provide resources that enable the U.S.’s more than 13,000 school districts to better protect and defend their students and employees against cyberattacks.
 
The Administration is taking additional action and committing resources to strengthen the cybersecurity of the nation’s K-12 school systems, including: 

  • Federal Communications Commission Chairwoman Jessica Rosenworcel is proposing establishing a pilot program under the Universal Service Fund to provide up to $200 million over three years to strengthen cyber defenses in K-12 schools and libraries in tandem with other federal agencies that have deep expertise in cybersecurity.
     
  • The U.S. Department of Education will establish a Government Coordinating Council (GCC) that will coordinate activities, policy, and communications between, and amongst, federal, state, local, tribal, and territorial education leaders to strengthen the cyber defenses and resilience of K-12 schools. By facilitating formal, ongoing collaboration between all levels of government and the education sector, the GCC will be a key first step in the Department’s strategy to protect schools and districts from cybersecurity threats and for supporting districts in preparing for, responding to, and recovering from cybersecurity attacks.
     
  • The U.S. Department of Education and the Cybersecurity and Infrastructure Security Agency (CISA) jointly released K-12 Digital Infrastructure Brief: Defensible & Resilient, the second in a series of guidance documents to assist educational leaders in building and sustaining core digital infrastructure for learning.  Additional briefs released by the U.S. Department of Education include Adequate and Future-Proof and Privacy-Enhancing, Interoperable and Useful.
     
  • CISA is committing to providing tailored assessments, facilitating exercises, and delivering cybersecurity training for 300 new K-12 entities over the coming school year.  CISA plans to conduct 12 K-12 cyber exercises this year, averaging one per month, and is currently soliciting exercise requests from government and critical infrastructure partners, including the K-12 community.
     
  • The Federal Bureau of Investigation (FBI) and the National Guard Bureau are releasing updated resource guides to ensure state government and education officials know how to report cybersecurity incidents and can leverage the federal government’s cyber defense capabilities.

Additionally, several education technology providers are committing to providing free and low-cost resources to school districts, including:

  • Amazon Web Services (AWS) is committing the following: $20 million for a K-12 cyber grant program available to all school districts and state departments of education; free security training offerings tailored to K-12 IT staff delivered through AWS Skill Builder; and no-cost cyber incident response assistance through its Customer Incident Response Team in the event a school district experiences a cyberattack.  AWS will also provide free well-architected security reviews to U.S. education technology companies providing mission-critical applications to the K-12 community.
     
  • Cloudflare, through its Project Cybersafe Schools, will offer a suite of free Zero Trust cybersecurity solutions to public school districts under 2,500 students, to give small school districts faster, safer Internet browsing and email security.
     
  • PowerSchool, a provider of cloud-based K-12 software in the United States for 80% of school districts, will provide new free and subsidized “security as a service” courses, training, tools and resources to all U.S. schools and districts.
     
  • Google released an updated “K-12 Cybersecurity Guidebook” for schools on the most effective and impactful steps education systems can take to ensure the security of their Google hardware and software applications.
     
  • D2L, a learning platform company, is committing to: providing access to new cybersecurity courses in collaboration with trusted third-parties; extending its information security review for the core D2L integration partners; and pursuing additional third-party validation of D2L compliance with security standards.

The commitments made today will help ensure the nation’s schools are in the best position to secure their networks to keep their students, educators, and employees safe. This is the latest example of President Biden’s commitment to ease the everyday concerns facing Americans – from strengthening confidence in the safety of the devices brought into homes and classrooms to securing the cyber infrastructure of our nation’s schools. 

Biden Administration, Economic Development

FACT SHEET: One Year after Signing CHIPS and Science Act, Biden Marks Historic Progress in Bringing Semiconductor Supply Chains Home, Supporting Innovation, Protecting National Security

Companies have announced $166 billion in investments in semiconductors and electronics in the one year since President Biden signed CHIPS into law
 

President Joe Biden, on the year-anniversary of signing the CHIPS and Science Act, companies have announced over $166 billion to bring semiconductor manufacturing back to the United States. “These investments are creating jobs and opportunities in communities across the country – from Ohio to Arizona, Texas and New York. And, in the last year alone, at least 50 community colleges have announced new or expanded programs to help American workers access good-paying jobs in the semiconductor industry.”

One year ago, President Biden signed into law the CHIPS and Science Act (CHIPS), which makes a nearly $53 billion investment in U.S. semiconductor manufacturing, research and development, and workforce. The law also creates a 25 percent tax credit for capital investments in semiconductor manufacturing, and is helping to keep America at the forefront of innovation and technological development. Semiconductors were invented in the United States, but today we produce only about 10 percent of global supply—and none of the most advanced chips. Similarly, investments in research and development have fallen to less than 1 percent of GDP from 2 percent in the mid-1960s at the peak of the space race. The CHIPS and Science Act aims to change this by driving American competitiveness, making American supply chains more resilient, and supporting our national security and access to key technologies.
 
In the one year since CHIPS was signed into law, companies have announced over $166 billion in manufacturing in semiconductors and electronics, and at least 50 community colleges in 19 states have announced new or expanded programming to help American workers access good-paying jobs in the semiconductor industry. In total, since the beginning of the Biden-Harris Administration, companies have announced over $231 billion in commitments in semiconductor and electronics investments in the United States. This week alone, the Department of Commerce announced the first round of grants under CHIPS to support the development of open and interoperable wireless networks, and the National Science Foundation and Departments of Energy, Commerce, and Defense announced progress toward establishing the National Semiconductor Technology Center, which will help advance America’s leadership in semiconductor research and development.

“One year ago today, I signed into law the bipartisan CHIPS and Science Act to revitalize American leadership in semiconductors, strengthen our supply chains, protect our national security, and advance American competitiveness,” President Biden stated. “America invented semiconductors – and today, they power everything from cell phones to cars to refrigerators. But over time, the United States went from producing nearly 40% of the world’s chips to just over 10%, making our economy vulnerable to global supply chain disruptions.

“The CHIPS and Science Act aims to change that.

“In the year since I signed this legislation into law, companies have announced over $166 billion to bring semiconductor manufacturing back to the United States. These investments are creating jobs and opportunities in communities across the country – from Ohio to Arizona, Texas and New York. And, in the last year alone, at least 50 community colleges have announced new or expanded programs to help American workers access good-paying jobs in the semiconductor industry. 

“The CHIPS and Science Act is a key part of my Bidenomics agenda to bring investment and opportunity to every corner of the country. Over the coming months, my Administration will continue to implement this historic law, make sure American union workers, small businesses, and families benefit from investments spurred by the CHIPS and Science Act, and make America once again a leader in semiconductor manufacturing and less dependent on other countries for our electronics or clean energy supply chains.”

One Year of Progress on Semiconductor Manufacturing and Innovation

Over the past year, agencies across the federal government have been developing and executing on programs established under CHIPS to encourage domestic semiconductor manufacturing, invest in research and development, and support supply chain resilience and workforce development. Key milestones in the Administration’s implementation of CHIPS include:

Supporting U.S. Semiconductor Manufacturing

  • The Department of Commerce launched the first funding opportunity for the $39 billion in semiconductor manufacturing incentives provided in the Act just six months after CHIPS was passed. This funding opportunity covers funding for projects to construct, expand, or modernize facilities producing semiconductors and for projects that are making large investments in facilities to produce semiconductor materials and manufacturing equipment. As the Department assesses applications, economic and national security considerations will be key factors and the program will, among other objectives, aim to provide a supply of secure, national-security relevant semiconductors.
  • Already, the Department of Commerce has received more than 460 statements of interest from companies for projects across 42 states interested in receiving CHIPS funding to invest across the semiconductor value chain from manufacturing to supply chains to commercial R&D.
  • The Department of Commerce has also stood up CHIPS for America, a team of more than 140 people working to support implementation of all aspects of the CHIPS incentives program.
  • The Department of the Treasury released a proposed rule in March 2023 to provide guidance on the Advanced Manufacturing Investment Credit, a 25% investment tax credit for companies engaged in semiconductor manufacturing and producing semiconductor manufacturing equipment. The Department of the Treasury also released a proposed rule in June 2023 to allow companies to receive the full amount of the Advanced Manufacturing Investment Credit as a direct payment from the Internal Revenue Service.
  • The Department of the Treasury released a proposed rule in March 2023 to provide guidance on implementing the Advanced Manufacturing Investment Credit to assist companies engaged in semiconductor manufacturing and producing semiconductor manufacturing equipment with a 25% tax credit.
     

Protecting National Security and Working with Allies and Partners

The Department of Commerce issued a proposed rule in March 2023 to implement the national security guardrails laid out in CHIPS. These guardrails are intended to prevent technology and innovation funded by the program from being misused by foreign countries of concern. The Department of the Treasury’s proposed rule in March 2023 implemented parallel guardrails for the Advanced Manufacturing Investment Credit.

  • The Department of State announced in March 2023 its plans for implementing the International Technology Security and Innovation Fund to support semiconductor supply chain security and diversification, as well as adoption of trustworthy and secure telecommunications networks. The State Department has already announced partnerships with Costa Rica, Panama, and the OECD to explore opportunities to collaborate on the global semiconductor supply chain.
  • The Department of Defense and Department of Commerce signed an agreement to expand their collaboration to make sure that CHIPS investments will position the United States to manufacture semiconductors essential to national security and defense programs.
  • As it implements CHIPS, the Department of Commerce has been in close touch with a number of partners and allies including the Republic of Korea, Japan, the United Kingdom, India, and the European Union. The United States is engaging with partners and allies to coordinate government incentive programs, build resilient cross-border semiconductor supply chains, promote knowledge exchange and collaboration in developing next-generation technologies, and implement safeguards to protect national security.
     

Creating Jobs and Workforce Pipelines for American Workers

  • The White House announced an initial set of five Workforce Hubs to create pipelines for Americans to access good-paying jobs in the semiconductor industry and other industries seeing an increase in investments driven by President Biden’s Investing in America agenda – including CHIPS, the Inflation Reduction Act, and the Bipartisan Infrastructure Law. The White House also announced a national Workforce Sprint focused on creating pipelines into advanced manufacturing jobs, including in the semiconductor industry.
  • At least 50 community colleges have already announced new or expanded semiconductor workforce programs. In July, the White House launched its first Workforce Hub in Columbus, Ohio, where Columbus State Community College announced a new partnership with Intel which will create a new semiconductor technician credentialing course, available this fall.
  • The National Science Foundation is investing in the American semiconductor workforce through new initiatives focused on the manufacturing workforce, supporting researchers, and curriculum development. This includes partnerships with major semiconductor and technology companies.
  • According to Handshake, student applications to full-time jobs posted by semiconductor companies were up 79% in 2022-2023, compared to just 19% for other industries.
     

Investing in Innovation

  • The Department of Commerce is partnering with the Department of Defense, the Department of Energy, and the National Science Foundation to establish the National Semiconductor Technology Center (NSTC), a critical part of the CHIPS research and development program that will support U.S. leadership in semiconductor innovation, cut down on the time and cost of commercializing new technologies, and develop the semiconductor workforce. The Department of Commerce has also outlined its strategy for the NSTC with respect to extending U.S. leadership in semiconductor innovation, reducing time to commercialization, and building a strong microelectronics workforce.
  • The Department of Commerce is also continuing to work on other parts of its $11 billion R&D funding including the metrology program, the National Advanced Packaging Manufacturing Program, and up to three new Manufacturing USA Institutes.
  • The Department of Defense released a Request for Solutions for its Microelectronics Commons R&D program in December 2022. This program will support hardware prototyping, the transition of new technologies from lab-to-fab, and workforce training. Source selection is currently underway.
     

Supporting Regional Economic Development and Innovation

  • The Department of Commerce released a funding opportunity in May 2023 for Phase 1 of the $500 million Tech Hubs Program. This is an economic development program to develop centers of innovation across the country through support of regional manufacturing, commercialization, and deployment of key technologies.
  • The Department of Commerce released a funding opportunity in June 2023 for Phase 1 of the $200 million Recompete Pilot Program, an initiative to support economic opportunity and create good jobs in persistently distressed communities.  
  • The National Science Foundation established a new Directorate for Technology, Innovation, and Partnerships. This Directorate has already launched the NSF Regional Innovation Engines program, which is helping to support innovation in geographies that have not received the full benefits of technology advancement in past decades. In May 2023, NSF announced 44 NSF Engines Development Awards spanning 46 U.S. states and territories, each funded at up to $1 million over two years to plan for a future NSF Engine. In August 2023, NSF announced 16 finalists for the inaugural set of NSF Engines awards, which are anticipated by the end of the year and will provide each NSF Engine with up to $160 million over up to 10 years.
     

Support Wireless Innovation and Security

Biden Administration, Cybersecurity, News & Photo Features

Biden-Harris Administration, DARPA Launch $20 Million Artificial Intelligence Cyber Challenge to Protect America’s Critical Software

Several leading AI companies – Anthropic, Google, Microsoft, and OpenAI – to partner with DARPA in major competition to make software more secure

The Biden-Harris Administration has  launched a major two-year competition that will use artificial intelligence (AI) to protect the United States’ most important software, such as code that helps run the internet and our critical infrastructure.  The “AI Cyber Challenge” (AIxCC) will challenge competitors across the United States, to identify and fix software vulnerabilities using AI. Led by the Defense Advanced Research Projects Agency (DARPA), this competition will include collaboration with several top AI companies – Anthropic, Google, Microsoft, and OpenAI – who are lending their expertise and making their cutting-edge technology available for this challenge. This competition, which will feature almost $20 million in prizes, will drive the creation of new technologies to rapidly improve the security of computer code, one of cybersecurity’s most pressing challenges. It marks the latest step by the Biden-Harris Administration to ensure the responsible advancement of emerging technologies and protect Americans.

The Biden-Harris Administration announced AIxCC at the Black Hat USA Conference in Las Vegas, Nevada, the nation’s largest hacking conference, which for decades has produced many cybersecurity innovations. By finding and fixing vulnerabilities in an automated and scalable way, AIxCC fits into this tradition. It will demonstrate the potential benefits of AI to help secure software used across the internet and throughout society, from the electric grids that power America to the transportation systems that drive daily life.

DARPA will host an open competition in which the competitor that best secures vital software will win millions of dollars in prizes. AI companies will make their cutting-edge technology—some of the most powerful AI systems in the world—available for competitors to use in designing new cybersecurity solutions. To ensure broad participation and a level playing field for AIxCC, DARPA will also make available $7 million to small businesses who want to compete.

Teams will participate in a qualifying event in Spring 2024, where the top scoring teams (up to 20) will be invited to participate in the semifinal competition at DEF CON 2024, one of the world’s top cybersecurity conferences. Of these, the top scoring teams (up to five) will receive monetary prizes and continue to the final phase of the competition, to be held at DEF CON 2025. The top three scoring competitors in the final competition will receive additional monetary prizes.

The top competitors will make a meaningful difference in cybersecurity for America and the world. The Open Source Security Foundation (OpenSSF), a project of the Linux Foundation, will serve as a challenge advisor. It will also help ensure that the winning software code is put to use right away protecting America’s most vital software and keeping the American people safe.

Today’s announcement is part of a broader commitment by the Biden-Harris Administration to ensure that the power of AI is harnessed to address the nation’s great challenges, and that AI is developed safely and responsibly to protect Americans from harm and discrimination. Last month, the Biden-Harris Administration announced it had secured voluntary commitments from seven leading AI companies to manage the risks posed by the technology. Earlier this year, the Administration announced a commitment from several AI companies to participate in an independent, public evaluation of large language models (LLMs)—consistent with responsible disclosure principles—at DEF CON 2023. This exercise, which starts later this week and is the first-ever public assessment of multiple LLMs, will help advance safer, more secure and more transparent AI development.

In addition, the Biden-Harris Administration is currently developing an executive order and will pursue bipartisan legislation to help America lead the way in responsible AI innovation.