According to a new report from Moody’s this morning, President Biden’s bipartisan infrastructure deal and Build Back Better Framework will add 1.5 million jobs per year on average across the whole decade, while accelerating America’s path to full employment and increasing labor force participation.
Moody’s also projects that total GDP will increase by nearly $3 trillion relative to the baseline over the next decade.
And, the Moody’s report confirms what the President has said for weeks: that these sorts of investments in making our economy more productive will keep prices stable and decrease inflationary pressure.
Moody’s notes that, “the legislation is also designed to ease the financial burden of inflation for lower- and middle-income Americans by helping with the cost of childcare, eldercare, education, healthcare and housing for these income groups.” The Moody’s report concludes that, “failing to pass legislation would diminish the economy’s prospects.”
Since President Biden took office, there has been historic job growth – nearly 5 million new jobs, the most in any President’s first eight months on record. The average number of new unemployment insurance claims has been cut by more than 60 percent and small business optimism has returned to its pre-pandemic levels. Independent projections from the CBO, the IMF, the Federal Reserve, the World Bank, the OECD, and many others all forecast America this year reaching the highest levels of growth in decades thanks to the President’s success in getting economic relief to the middle-class and curbing the pandemic. While the American Rescue Plan is changing the course of the pandemic and delivering relief for working families, this is no time to build back to the way things were.
This is the moment to reimagine and rebuild a new economy by making transformational investments in our middle-class and economic competitiveness. The President’s bipartisan Infrastructure Investment and Jobs Act and Build Back Better Framework will rebuild the economy from the bottom up and the middle out, ease the burden of high costs on working families, and deliver one of the biggest middle class tax cuts ever.
The White House released updated state fact sheets that highlight the nationwide impact of the Infrastructure Investment and Jobs Act, the largest long-term investment in our infrastructure and competitiveness in nearly a century.
The fact sheets highlight how the historic legislation will deliver for states and territories across the country to repair roads and bridges, improve transportation options, build a network of EV chargers to accelerate the adoption of EVs, help connect every American to reliable high-speed internet, eliminate the nation’s lead service lines and pipes for clean drinking water, protect against extreme weather events and cyberattacks and improve our nation’s airports.
In the coming days and weeks, we expect to receive additional data on the impact of the Infrastructure Investment and Jobs Act state by state.
Individual fact sheets for each of the 50 states, the District of Columbia and Puerto Rico are linked below.
Over the first three full months of the Biden-Harris Administration, the economy added more than 1.5 million jobs, or more than 500,000 jobs per month on average. That compares to an average of 60,000 jobs per month in the three previous months. These three months have seen the strongest first three months of job growth of any administration.
Despite this progress, there’s more work to do to climb out of the economic crisis brought on by the pandemic. The Biden-Harris Administration is acting aggressively to ensure that the millions of Americans who remain unemployed, through no fault of their own, can find safe, good-paying work as quickly as possible. That’s why the President is announcing today that the Administration will take steps to remove barriers that are preventing Americans from returning safely to good-paying work and take steps to make it easier for employers to hire new workers.
And, the President and the Administration will reaffirm the basic rules of the unemployment insurance (UI) program. Anyone receiving UI who is offered a suitable job must take it or lose their UI benefits. A core purpose of the UI program is helping workers get back to work, and UI provides laid-off workers with temporary assistance to help pay bills and relieve hardship. By reaffirming these rules and purposes, the Administration will ensure that the UI program continues to support workers and facilitate hiring.
“Let’s be clear,” President Joe Biden stated, “our economic plan is working. I never said — and no serious analyst ever suggested — that climbing out of the deep, deep hole our economy was in would be simple, easy, immediate, or perfectly steady. Remember, 22 million Americans lost their jobs in this pandemic.
“So, some months will exceed expectations; others will fall short. The question is, ‘What is the trendline? Are we headed in the right direction? Are we taking the right steps to keep it going?’ And the answer, clearly, is yes…
“Twenty-two million people lost their jobs in this pandemic through no fault of their own. They lost their jobs to a virus, and to a government that bungled its response to the crisis and failed to protect them.
“We still have 8 million fewer jobs than we did when the pandemic started. And for many of those folks, unemployment benefits are a lifeline. No one should be allowed to game the system and we’ll insist the law is followed, but let’s not take our eye off the ball…
“So we need to stay focused on creating jobs and beating this pandemic today, and building back better for tomorrow. The American Rescue Plan is just that: a rescue plan. It’s to get us out of the crisis and back on the track, but it’s not nearly enough.
“That’s why we need the American Jobs Plan, which is an eight-year investment — an eight-year investment strategy to make sure working people of this country get to share in the benefits of a rising economy, and to put us in a position to win the competition with China and the rest of the world for the 21st century.”
Specifically, today the President is:
REMOVING BARRIERS THAT ARE KEEPING AMERICANS FROM RETURNING SAFELY TO GOOD-PAYING WORK
Accelerating the Provision of Assistance to Hard-Hit Child Care Providers to Get More Parents Back to Work
Between February 2020 and March 2021, 520,000 mothers and 170,000 fathers between ages 20 and 54 left the labor force and have not returned. Many need or want to work but cannot because of child care disruptions. At the same time, early childhood and child care providers – nearly all small businesses, overwhelmingly owned by women and disproportionately owned by people of color – have been hit hard by the pandemic. According to one survey, as of December, about one in four child care providers open at the start of the pandemic were closed, hindering access to care, especially for families of color. Child care providers that have stayed open have gone to enormous lengths to do so and are struggling to stay open: two in five providers report taking on debt for their programs using personal credit cards to pay for increased costs and three in five work in programs that have reduced expenses through layoffs, furloughs, or pay cuts. And, there are 150,000 fewer child care jobs today than there were at the beginning of the pandemic.
The American Rescue Plan provides funding to address the child care crisis caused by COVID-19 to help parents who need or want to work to return to their jobs. This includes funding to stabilize the child care industry so that parents can send their children to safe, healthy, stable child care environments and additional funding to help families access affordable, high-quality care, including by providing subsidized care to more than 800,000 families with the greatest need and by providing resources for hard-hit child care providers.
Today, the Department of Health and Human Services is releasing guidance to states, tribes, and territories so that states can start getting the child care stabilization funding to providers immediately. The guidance will encourage states to get funding out quickly and to make it as easy as possible for hundreds of thousands of child care providers, including centers and family-based providers, to receive the funding. It will also encourage states to allow the funds to be used broadly to meet the unique needs of providers so they can reopen or maintain essential services. It will explain, for example, how they can use the funds to bolster their workforce, cover expenses like rent and utilities, and pay for goods and services needed to stay open or reopen. And, it will provide guidance on ways providers can use funds to help them operate according to CDC guidelines, so that as parents return to work, they can have peace of mind their children are in a safe and healthy learning environment. In all, these funds will support child care providers in keeping their doors open, benefiting the parents of more than 5 million children who rely on them to stay in or return to the labor force.
And, thanks to the historic expansion of the Child and Dependent Care Tax Credit (CDCTC) in the American Rescue Plan, families can rest assured that they can receive up to half of their child care expenses this year when they file taxes for 2021. A median income family with two kids under age 13 will receive a tax credit of up to $8,000 towards this year’s expenses, compared with a maximum of $1,200 previously.
Directing the Secretary of Labor to Safely Expand States’ Reemployment Services and Workforce Development Boards’ Jobs Counseling for Unemployment Beneficiaries.
States receive federal funding for Reemployment Services and Eligibility Assessments (RESEA) of UI beneficiaries to help them find employment while ensuring they remain eligible for benefits. These services shorten workers’ time on unemployment benefits by helping them match with good jobs and confirm their eligibility for benefits. States significantly and appropriately slowed in-person RESEA meetings in the midst of historic unemployment and the COVID-19 pandemic. With the economy and jobs growing again, the President will direct the Secretary of Labor to issue guidance to states to quickly and safely – consistent with CDC and OSHA guidance – expand their RESEA programs so that more UI beneficiaries can return to work.
Similarly, the public workforce system’s Workforce Development Boards (WDB) collectively receive hundreds of millions of dollars they can use to provide individualized career counseling, called “individual career services,” to job seekers. However, because of the pandemic’s risks, many WDBs stopped providing in-person services and had to quickly transition to remote services. Now that tens of millions of Americans have been vaccinated, and we know how to operate physical locations safely, the President will direct the Secretary of Labor to work with the public workforce system to provide the maximum level possible of individual career services to UI beneficiaries and other unemployed workers using existing resources, and in a manner consistent with CDC and OSHA guidance.
MAKING IT EASIER FOR EMPLOYERS TO HIRE NEW WORKERS
Supporting Hard-Hit Restaurants and Bars
Restaurants, bars, and other small businesses offering on-site food and beverages are vital to our communities and economy. From big cities to small towns, these restaurants and bars offer communities a place to gather, celebrate, and share ideas. They also employed nearly 12 percent of all workers prior to the pandemic. Despite their importance, restaurants and bars have suffered severely during the pandemic. The leisure and hospitality sector, which includes restaurants and bars, had 17 percent fewer jobs this April than in February 2020.
Though we have seen significant progress under the Biden-Harris Administration – leisure and hospitality added 331,000 jobs in April, by far the most of any industry and more than it added in March – there is still more work to do to help this critical sector recover. Established through the American Rescue Plan, the Biden-Harris Administration recently launched the Restaurant Revitalization Fund (RRF) – a program to aid restaurants, bars, food trucks, and other food and drink establishments. These grants will give restaurants and bars the flexibility to hire back workers at good wages. In the first two days of the program, 186,200 restaurants, bars, and other eligible businesses in all 50 states, Washington, D.C., and five U.S. Territories applied for relief.
Today, the Administration is sending the first grants under the program to 16,000 hard-hit restaurants. These include restaurants in states and territories throughout the country, and restaurants owned and controlled by women, veterans, and socially and economically disadvantaged individuals.
Providing States and Localities with the Resources They Need to Help Return Americans to Work
The American Rescue Plan delivered flexible Coronavirus State and Local Fiscal Recovery Funds that will help state and local governments hire back public sector workers; ramp up the effectiveness of their COVID response and vaccination programs to make return to work, school, and care safer; and bolster efforts to help workers negatively affected by the pandemic to train for and secure good-paying jobs. With today’s announcement, the U.S. Department of Treasury is making the first segment of these funds available to states and localities and laying out how these funds can be used to address pandemic-response needs and support the communities and populations hardest-hit by the COVID-19 crisis.
State and local employment remains 1.3 million jobs down since before the pandemic. Learning from the mistakes of the Great Recession, when state and local government budget cuts were a drag on GDP growth for 23 of the 26 quarters following the crisis, the funds will provide these governments with the resources needed to help address challenges in returning Americans to work. This includes in the public sector, where state and local employment remains down over one million jobs since the start of the pandemic. Fiscal Recovery Funds will help bring firefighters, teachers, school staff, cops, and other public servants back to work.
Helping Employers – Especially Small Businesses – Rehire and Retain Workers Through the Extended and Expanded Employee Retention Credit
To help hard-hit employers rehire and retain workers, President Biden extended and expanded the Employee Retention Credit (ERC) in the American Rescue Plan. This year, the ERC offers eligible employers with 500 or fewer employees a tax credit of 70 percent of the first $10,000 in wages per employee per quarter. In other words, this refundable, advanceable credit will cover up to $7,000 in wages per quarter or $28,000 per year for each employee. For example:
A small independent retailer in Milwaukee, Wisconsin with 25 employees has $130,000 in payroll expenses per quarter (all for employees earning less than $10,000 in the quarter), and experiences a 25 percent decline in gross receipts in the first quarter of 2021 compared to the first quarter of 2019. The retailer is eligible for the Employee Retention Credit in the first quarter since it experienced a greater than 20 percent decline in gross receipts. The retailer is also eligible for the ERC in the second quarter because of the decline as compared to 2019 in the immediately preceding first quarter. The retailer can claim a tax credit of $91,000 in both the first and second quarters (for a total of $182,000). The amount of the tax credit would be applied against the retailer’s quarterly federal payroll tax amount, and then, assuming that the $91,000 was in excess of the total liability for the quarter, the excess would be advanced (or paid by the government directly to the retailer). If the retailer experienced declines in gross receipts in the third quarter as compared to 2019, it could claim an additional tax credit (in a similar amount) for the third quarter and the fourth quarter. The small retail business could use this advance – which could amount to tens of thousands of dollars – to rehire workers, raise wages, improve facilities, and purchase new inventory.
While more than 30,000 small businesses have already claimed more than $1 billion in ERCs this year, the Biden-Harris Administration is working to increase awareness of and participation in this beneficial program. Specifically, this week, the Treasury Department will disseminate clear and concise steps on how businesses can determine their eligibility and claim the ERC. These and other efforts will help businesses bring employees back sooner and keep them on the job as the economy recovers.
Helping Employers Ramp Back Up
As businesses ramp back up without knowing how many workers they will need to operate as the economy recovers, some will look to bring workers on part-time. The UI system offers options for these employers and their returning workers. Workers shouldn’t have to choose between losing their full UI benefits to take part-time work that represents only a portion of their original salary. The Department of Labor will announce this week how unemployed workers who are rehired part-time don’t have to face that choice. They can work part-time while still receiving part of their UI benefits so they can work and still make ends meet.
There are two programs that can help and the Department of Labor this week will help highlight them:
Short-Time Compensation: Short-time compensation was designed to help prevent layoffs by allowing workers to remain employed at reduced hours and still collect a portion of their UI benefits. But it can also be used to help employers rehire their already laid off workers. If an employer brings a laid-off employee back part-time and participates in the short-time compensation program, that worker will receive pro-rated UI benefits to help cover reduced compensation for not working full time, as well as the $300 weekly supplement until that supplement expires September 6th.
The Biden-Harris Administration will highlight this program to help employers rehire their laid-off employees in the coming weeks and work to make it as easy as possible for employers and workers to participate. Short-time compensation programs are currently available in . These benefits are fully federally funded through September 6 for those states.
Partial UI: Another overlooked option for helping employers ramp up is the partial UI program, which allows workers to return to work at a new employer at reduced hours while still receiving some unemployment benefits. This is a good option for workers who may not qualify for short-time compensation because they are not returning to their previous employer. States can enhance the capacity of partial UI by raising the income threshold where workers can both work and receive some UI benefits, and the Department of Labor will be encouraging states to do so.
CLARIFYING RULES OF THE UI PROGRAM
This week, the Department of Labor will reaffirm longstanding UI requirements to make sure everyone, including states, employers, and workers, understands the rules of the road for UI benefits. These clarifications will also help ease a return to work. Specifically, the Secretary of Labor will issue a letter to states to reaffirm that individuals receiving UI may not continue to receive benefits if they turn down a suitable job due to a general, non-specific concern about COVID-19. In addition, the President is directing the Secretary of Labor to work with states to reinstate work search requirements for UI recipients, if health and safety conditions allow.
Clarifying Rules of UI Programs: The Department of Labor will clarify that, under all UI programs including the Pandemic Unemployment Assistance (PUA) program put in place last year, workers may not turn down a job due to a general, non-specific concern about COVID-19 and continue to receive benefits. Under the PUA program, a worker may receive benefits if the worker certifies weekly that one of the few specific COVID-related reasons specified by Congress is the cause of their unemployment. These reasons include, for example, that the worker has a child at home who cannot go to school because of the pandemic or that the worker is offered a job at a worksite that is out of compliance with federal or state health requirements. Moreover, workers may not misreport a COVID-related reason for unemployment. The President is directing the Department of Labor to take concrete steps to raise awareness about these and other requirements.
Directing the Secretary of Labor to Work with States on Work Search Requirements: The President is directing the Secretary of Labor to work with states to reinstate work search requirements for UI recipients, if health and safety conditions allow. As part of the Families First Coronavirus Response Act signed into law last year by the previous Administration, states receiving certain federal relief funds were required to waive their requirements that workers search for work in order to continue receiving unemployment benefits. While 29 states have already reinstated their work search requirements, the President is directing the Department of Labor to work with the remaining states, as health and safety conditions allow, to put in place appropriate work search requirements as the economy continues to rebound, vaccinations increase, and the pandemic is brought under control.
A core purpose of the UI program is helping workers get back to work. UI keeps workers connected to the labor market during spells of unemployment by providing workers with income that allows them to look for a job match commensurate with their skills or prior wages. UI recipients also gain access to crucial reemployment services to help with job search or retraining where necessary. Ensuring a good job match is good for workers, as well as employers who want the best candidates for their jobs.
Returning to work during a pandemic is more complicated than searching for work in ordinary times. The COVID-19 pandemic remains a genuine challenge for our country, with infections, hospitalizations, and deaths down substantially when compared with last year, but still at unacceptably high levels. While vaccinations are on the rise with over half of American adults having received at least one shot, around a quarter of those aged 18 to 29 and around a third of those aged 30 to 39 are fully vaccinated. There is a great deal more to do.
At the same time, our economy is growing again at an annual rate of more than 6% and more than 1.5 million jobs have been created over the last three months. Many more workers would like to return to work if they can overcome the barriers that stand in the way. We can and will continue to ensure workers and their families are protected from COVID-19, while also helping those who are able and available to search for good jobs in safe and healthy workplaces.
‘Key to Getting Funds Into Hands of Providers’
Katie Hamm, acting deputy assistant secretary for Early Childhood Development at HHS’ Administration for Children and Families, stated, “Today, the Administration for Children and Families (ACF) released guidance to support states, territories, and tribes in distributing $24 billion in relief funds for child care providers. The guidance explains specific requirements related to the child care stabilization funds and identifies opportunities for states, territories, and tribes to leverage these resources to support a wide range of child care providers.
“The guidance is key to getting funds into the hands of providers that employ essential workers and help make child care accessible to working families. These funds essentially help stabilize the industry and spur economic growth in communities hit hardest by the pandemic. Most of these funds will go to providers and can be used for a variety of operating expenses, including wages and benefits, rent and utilities, personal protective equipment and sanitization and cleaning.
“This guidance lays out a roadmap for stabilizing the child care sector. The document is meant to support and guide child care agencies in awarding grants to child care centers and family child care providers, which are vital to our nation’s economic recovery.”
There was so much about President Joe Biden’s first speech to a joint session of Congress (otherwise known as the State of the Union address) that was extraordinary, with the twin challenges of the coronavirus pandemic and domestic insurrection still hovering, but also the historic nature: Biden began by acknowledging the historic moment of “Madam Speaker” and “Madam Vice President” sitting on the podium behind him.
But there was a lot more to his review of his first 100 days in office that was historic: “Because of you, the American people, our progress these past 100 days against one of the worst pandemics in history has been one of the greatest logistical achievements this country has ever seen,” he declared. The economy created 1,300,000 new jobs in Biden’s first 100 days – more jobs in the first 100 days of any President, and the economy is on track to achieve 6% growth, the fastest growth rate in four decades.
“I come to talk about crisis and opportunity, about rebuilding the nation, revitalizing our democracy, and winning the future for America.”
His speech was long on specific proposals and praise for others, and very short on self-congratulations, even stepping on applause lines and speaking over and over about coming “together”. “Thanks to all the help of all of you, we’re marshalling — with your help, everyone’s help — we’re marshalling every federal resource.”
He laid out his plan – and rationale – for the biggest, most transformational investment in infrastructure in history, the American Jobs Plan: “These are the investments we made together as one country, and investments that only the government was in a position to make. Time and again, they propel us into the future.”
In a word, it represents “jobs” – a word he used 43 times.
He used jobs to justify investments in traditional infrastructure but also investments in climate action and research & development.
He proposed a new agency like DARPA, responsible for inventing the internet, for medicine, to ultimately eradicate cancer and deal with the epidemic of Alzheimer‘s. He is proposing expanding access to the Affordable Care Act, lowering premiums, and lowering the costof prescription drugs for everyone by allowing Medicare to negotiate prices.
“Independent experts estimate the American Jobs Plan will add millions of jobs and trillions of dollars to economic growth in the years to come. It is an eight-year program. These are good-paying jobs that can’t be outsourced…. The American Jobs Plan is a blue-collar blueprint to build America.”
His other big, trillion-dollar proposal is for the American Families Plan: in care – child care, parental and spousal care – paid family leave, and four more years of public education: two for pre-K and two more for community college.
He spoke of union rights and the need to raise the minimum wage to $15, pay equity.
These big, bold, transformational programs, he said, will be paid for by reforming tax code and collections. “Trickle-down economics has never worked and it’s time to grow the economy from the bottom and the middle out…What I’m proposing will help create millions of jobs and generate historic economic growth. These are among the highest-value investments we can make as a nation.”
He addressed immigration reform, justice reform, voting rights, gun reform, and for good measure, told the LGBTQ and specifically transgender young people, “I’ve got your back.” He called for Congress to pass the George Floyd Police Reform Act in time for the one-year anniversary of his death at the hands of a police officer. “We have to come together to rebuild trust between law enforcement and the people they serve, to root out systemic racism in our criminal justice system, and to enact police reform in George Floyd’s name that passed the House already…
“We have a giant opportunity to bend to the arc of the moral universe towards justice — real justice. And with the plans outlined tonight, we have a real chance to root out systemic racism that plagues America and American lives in other ways; a chance to deliver real equity — good jobs, good schools, affordable housing, clean air, clean water, being able to generate wealth and pass it down two generations because you have an access to purchase a house. Real opportunities in the lives of more Americans — Black, white, Latino, Asian Americans, Native Americans.”
For the most part delivered in quiet, intimidate, personal tones, frequently speaking directly to the American people, and only in a few instances raising his voice rose in volume and intensity, especially in terms of the need for America to stand as a beacon of democracy, and ward off the looming vultures of autocracy licking their chops over a collapse.
Issues like fighting the pandemic, terrorism and the climate crisis cannot be done by any one nation alone.
“America will not back away from our commitments — our commitment to human rights and fundamental freedoms and to our alliances…. America is an idea — the most unique idea in history: We are created, all of us, equal. It’s who we are, and we cannot walk away from that principle and, in fact, say we’re dealing with the American idea.”
And while saying firmly he will stand up to China, Russia, North Korea, and Iran, and pursue terrorists everywhere, even as the US ends its forever war in Afghanistan, he declared emphatically, “We won’t ignore what our intelligence agencies have determined to be the most lethal terrorist threat to the homeland today: White supremacy is terrorism. We’re not going to ignore that either.”
He did not shirk from raising intractable issues that have plagued America for decades, starting with gun reform saying, “I will do everything in my power to protect the American people from this epidemic of gun violence, but it’s time for Congress to act as well.
“Look, I don’t want to become confrontational but we need more Senate Republicans to join the overwhelming majority of Democrat colleagues and close the loopholes requiring a background check on purchases of guns. We need a ban on assault weapons and high-capacity magazines. And don’t tell me it can’t be done. We did it before, and it worked.
“This shouldn’t be a red or blue issue. And no amendment to the Constitution is absolute. You can’t yell “Fire!” in a crowded theater. From the very beginning, there were certain guns, weapons,that could not be owned by Americans. Certain people could not own those weapons ever.
“We’re not changing the Constitution; we’re being reasonable. I think this is not a Democrat or Republican issue; I think it’s an American issue.”
So is immigration. “Immigration has always been essential to America. Let’s end our exhausting war over immigration. For more than 30 years, politicians have talked about immigration reform, and we’ve done nothing about it. It’s time to fix it.”
On his first day in office, Biden sent a comprehensive immigration reform bill to Congress. “If you believe we need to secure the border, pass it, because it has a lot of money for high-tech border security. If you believe in a pathway to citizenship, pass it so over 11 million undocumented folks — the vast majority are here overstaying visas. Pass it. We can actually — if you actually want to solve a problem, I’ve sent a bill to take a close look at it.”
At least, he said, pass protection for DREAMers.
And finally, he told Congress, pass voting rights protections.
“Can our democracy overcome the lies, anger, hate, and fears that have pulled us apart?
“America’s adversaries –- the autocrats of the world –- are betting we can’t. And I promise you, they’re betting we can’t. They believe we’re too full of anger and division and rage. They look at the images of the mob that assaulted the Capitol as proof that the sun is setting on American democracy. But they are wrong. You know it; I know it. But we have to prove them wrong.
“We have to prove democracy still works — that our government still works and we can deliver for our people…
“Our Constitution opens with the words — as trite as it sounds – ‘We the People’. Well, it’s time to remember that ‘We the People’ are the government — you and I. Not some force in a distant capital. Not some powerful force that we have no control over. It’s us. It’s ‘We the People.’
“In another era when our democracy was tested, Franklin Roosevelt reminded us, ‘In America, we do our part.’ We all do our part. That’s all I’m asking: that we do our part, all of us.
“If we do that, we will meet the center challenge of the age by proving that democracy is durable and strong. Autocrats will not win the future. We will. America will. And the future belongs to America.”
President Biden held a historic Leaders Summit on Climate, in which he announced higher targets for the US to achieve, and underscored America’s commitment to leading a clean energy revolution, linking climate action to economic growth. The White House issued this summary:
On Day One, President Biden fulfilled his commitment to rejoin the Paris Agreement. Days later, he took executive actions to ensure we tackle the climate crisis at home and abroad – all while creating jobs and strengthening our economy. This week, he held a historic summit with 40 world leaders to show that America is back.
Over the course of two days and eight sessions, President Biden convened heads of state and government, as well as leaders and representatives from international organizations, businesses, subnational governments, and indigenous communities to rally the world in tackling the climate crisis, demonstrate the economic opportunities of the future, and affirm the need for unprecedented global cooperation and ambition to meet the moment.
On the first day of the summit, President Biden upped the ante. He announced the United States will target reducing emissions by 50-52 percent by 2030 compared to 2005 levels. He underscored America’s commitment to leading a clean energy revolution and creating good-paying, union jobs – noting that the countries that take decisive action now will reap the economic benefits of the future.
In the United States, the Biden-Harris Administration has mobilized a whole-of-government approach to unleash economic opportunities, create good jobs, and advance environmental justice. From the national to the local level and across all agencies, the federal government is not only working to help those hit hardest by climate impacts, but also creating a more resilient, equitable, and prosperous future.
While the Biden-Harris Administration has committed itself to addressing the climate crisis, countries across the globe must also step up. Given that more than 85 percent of emissions come from beyond U.S. borders, domestic action must go hand in hand with international leadership. All countries – and particularly the major economies – must do more to bend the curve on global emissions so as to keep a 1.5 degree C limit on global average temperature rise within reach. President Biden’s Leaders Summit helped ensure the international community is working together to tackle the climate crisis and support the most vulnerable. Together with the new United States 2030 target along with those announced in the run-up to and at the summit, more than half of the world’s economy is now committed to the pace of action we need to limit warming to 1.5 degree C. And this coalition is growing.
President Biden convened the U.S.-led Major Economies Forum (MEF) on Energy and Climate, a group the United States first convened during the George W. Bush Administration. Together, the 17 MEF economies are responsible for approximately 80 percent of global greenhouse gas emissions and global GDP. At the Summit, alongside the United States, the other MEF participants committed to take the necessary steps to set the world up for success in this decisive decade. The heads of state and leaders of the MEF participants were also joined by the leaders of countries that are especially vulnerable to climate impacts, as well as countries charting innovative pathways to a net-zero economy. Business leaders, innovators, local officials, and indigenous and youth representatives participated in the summit, sharing their insights and planned contributions to help tackle the climate crisis.
For our part, the United States is leading the way with a range of bold new commitments across the federal government that demonstrate its leadership, create jobs, rally the rest of the world to step up, mobilize finance, spur transformational innovations, conserve nature, build resilience, strengthen adaptation and drive economic growth for communities. U.S. commitments include:
Enhancing climate ambition and enabling the transformations required to reach net-zero emissions by 2050. President Biden is galvanizing efforts by the world’s major economies to reduce emissions during this critical period. From reducing short-lived climate pollutants and supporting the most vulnerable to investing in nature-based solutions, these transformational changes are critical to keep a 1.5 degree C limit on global average temperature rise within reach. Just as importantly, they will create new, good-paying jobs today to drive tomorrow’s economy.
The Biden-Harris Administration’s whole-of-government approach is ensuring that climate considerations are incorporated across U.S. engagements both at home and abroad. Some of the initiatives that were announced today include:
Launching a Global Climate Ambition Initiative. The U.S. government will support developing countries in establishing net-zero strategies, implementing their nationally determined contributions and national adaptation strategies, and reporting on their progress under the Paris Agreement. The Department of State and the U.S. Agency for International Development (USAID), working with other agencies, will coordinate U.S. government efforts to support countries around the world to enhance and meet their climate goals in ways that further their national development priorities. We will engage strategically with governments, the private sector, civil society, and communities to support transformational policies and programs, build human and institutional capacity, and create momentum toward a zero-emissions, climate-resilient future.
Setting ambitious benchmarks for climate investments at DFC. The U.S. International Development Finance Corporation (DFC) is committing to achieve a net zero investment portfolio by 2040, the earliest target of any G7 or G20 development finance institution (DFI), and to make at least one-third of all its new investments have a climate nexus beginning in FY 2023. DFC will make climate issues central to its development strategy for the first time and bring all of its tools to bear to ensure a just transition that supports sustainable economic growth in developing countries. Working with the Rockefeller Foundation, DFC will support distributed renewable energy and other innovative climate investments to benefit millions worldwide. It has released a rolling call for proposals for climate investment funds, is bringing onboard its first Chief Climate Officer, and has established a $50 million climate technical assistance facility. These pioneering goals are unique among its peer institutions, and DFC will collaborate with other DFIs and encourage them to raise their own ambitions.
Committing to climate investments at MCC. The Millennium Challenge Corporation (MCC) will expand and deepen work to address climate change challenges across its investment portfolio and business operations—investing in climate-smart development and sustainable infrastructure. Over the next five years, MCC commits that more than 50 percent of its program funding will go to climate-related investments. MCC will promote low-carbon economic development, help countries transition away from fossil fuels, and maintain a coal-free policy across its portfolio of grants.
Launching a Greening Government Initiative. The Greening Government Initiative launch marks the first international convening on greening national plans for sustainable government operations. Co-chaired by Canada and the United States, GGI countries seek to lead by example in developing and implementing climate action plans that increase the resilience of and mitigate emissions from national government operations and real property. Through coordinating our national priorities and collaborating on common goals, we hope to foster and inspire a global “race to the top” of government efforts toward achievement of the goals of the Paris Agreement. The United States and Canada will lead this initiative through cooperation in the management of national government procurement and real property, helping both nations achieve their individual goals of a net-zero emissions economy, 100 percent clean electricity usage, and a zero-emissions vehicle fleet.
Mobilizing financing to drive the net-zero transition and adapt to climate change. Finance plays a vital role in accelerating the transition to a clean energy economy and building a climate-resilient future. Current financial flows are inadequate for addressing the scale of the climate crisis. Through President Biden’s international climate finance plan, the U.S. government will make strategic use of multilateral and bilateral channels and institutions to assist developing countries in implementing ambitious emissions reduction measures, protect critical ecosystems, build resilience against the impacts of climate change, and promote the flow of capital toward climate-aligned investments and away from high-carbon investments. To more effectively mobilize public and private finance to address the climate crisis, the United States announced it is:
Scaling up international financing to address climate needs. The United States intends to double by 2024 our annual public climate finance to developing countries relative to the average level during the second half of the Obama-Biden Administration (FY 2013-2016). As part of this goal, the United States intends to triple its adaptation finance by 2024. The Biden Administration will work closely with Congress to meet these goals.
Issuing the first U.S. International Climate Finance Plan. The United States is publishing its first-ever U.S. international climate finance plan, which lays out how federal agencies and departments responsible for international climate finance will work together to deliver that finance more efficiently and with greater impact.
Launching an international dialogue on decreasing fiscal climate risk through national budgets. Earlier this month, the United States announced a more than $14 billion increase in the President’s Budget over FY 2021 enacted levels across the entire government to tackle the climate crisis, the largest in history. The United States is launching an international dialogue on aligning the budget with climate risks and opportunities. The dialogue will build both on U.S. leadership in climate budgeting and assessing climate risk and on the pioneering work already being done in multilateral fora. The United States will engage with participating countries through bilateral and multilateral channels to collaborate on cost-effective strategies across participating countries to increase climate investments while creating good-paying jobs. The dialogue will also explore how to improve climate risk analysis in national operations that could help countries optimize and expand investments in adaptation and reduce national exposure to the impacts of climate change.
Transforming energy systems. The potential of solar energy, wind power, and electricity storage technologies has improved dramatically over the past few years. But we need to go further and faster. To support accelerated action, new commitments include:
Establishing a Net-Zero Producers Forum. In support of efforts to achieve net-zero emissions by midcentury, the United States, together with the energy ministries from Canada, Norway, Qatar, and Saudi Arabia, representing 40 percent of global oil and gas production, established a cooperative forum that will create pragmatic net-zero strategies, including methane abatement, advancing the circular carbon economy approach, development and deployment of clean-energy and carbon capture and storage technologies, diversification from reliance on hydrocarbon revenues, and other measures in line with each country’s national circumstances.
Establishing a U.S.-India Climate and Clean Energy Agenda 2030 Partnership. The United States is working with allies and partners around the world to set ambitious 2030 targets for climate action and clean energy innovation and deployment. The U.S.-India Climate and Clean Energy Agenda 2030 Partnership will elevate ambitious climate action as a core theme of U.S.-India collaboration and support the achievement of India’s ambitious targets, including reaching 450 GW of renewable energy by 2030. The Partnership will aim to mobilize finance and speed clean energy deployment; demonstrate and scale innovative clean technologies needed to reduce greenhouse gas emissions across sectors including industry, transportation, power, and buildings; and build capacity to measure, manage, and adapt to the risks of climate-related impacts.
Supporting ambitious renewable energy goals and pathways in Latin America and the Caribbean. The Department of State announced scaled-up technical assistance to countries participating in the Renewable Energy for Latin America and the Caribbean (RELAC) initiative, a regional effort led by Colombia, Chile, and Costa Rica to increase renewable energy capacity to at least 70 percent by 2030. Expanded U.S. support through the Low Emission Development Strategies Global Partnership and the U.S. National Renewable Energy Laboratory will center on peer learning and training on policies and technical measures for achieving high levels of renewable energy grid integration. U.S. support to enable current RELAC countries and motivate additional countries to join RELAC will be delivered in cooperation with the InterAmerican Development Bank, the Latin American Energy Organization (OLADE), and the Global Power System Transformation Consortium.
Supporting clean energy mineral supply chains. The Energy Resource Governance Initiative (ERGI) is a multinational effort founded by Australia, Botswana, Canada, Peru, and the United States to help build sustainable supply chains and promote sound sector governance for the minerals vital to technologies powering the energy transition, such as solar panels, electric vehicles, and battery storage. The United States has committed more than $10.5 million in bilateral technical assistance in support of ERGI principles in more than ten countries around the world. The Initiative’s focus is now expanding to include greening mining operations, as well as re-use and recycling of key minerals and metals. The United States will also join the Intergovernmental Forum on Mining in support of international cooperation on the minerals and metals that make the renewable energy transition possible.
Revitalizing the transport sector. The transformation of the transport sector offers some of the biggest opportunities for deep emissions cuts, new jobs, and healthier cities. To jump-start this revolution, the United States is committing to:
Sparking the zero-emission transportation revolution – at home and abroad. The Department of Transportation (DOT) is taking a comprehensive approach to addressing the climate crisis and expanding ways for all modes of transportation to transition to zero emissions. This includes funding for lower-emission buses, expanding access to electric vehicle (EV) charging stations, using our public rights of way in climate-supportive ways, and working with partners around the world bilaterally, regionally, and in multilateral fora to help catalyze the transition to zero-emitting transportation as swiftly as possible.
Joining the Zero Emission Vehicle Transition Council. The United States will join a coalition of governments representing more than half of new vehicle sales globally that is dedicated to accelerating the global transition to zero emission vehicles.
Reducing emissions from international shipping. The international shipping sector contributes approximately three percent of global greenhouse gas (GHG) emissions, and the sector’s emissions are only projected to increase. In support of the global effort to keep within reach a 1.5 degree C limit on global average temperature increase, and in support of global efforts to achieve net-zero GHG emissions no later than 2050, the United States is committing to work with countries in the International Maritime Organization (IMO) to adopt a goal of achieving zero emissions from international shipping by 2050 and to adopt ambitious measures that will place the sector on a pathway to achieve this goal.
Reducing emissions from international aviation. The United States is committed to working with other countries on a vision toward reducing the aviation sector’s emissions in a manner consistent with the goal of net-zero emissions for our economy by 2050, as well as on robust standards that integrate climate protection and safety. The United States intends to advance the development and deployment of high integrity sustainable aviation fuels and other clean technologies that meet rigorous international standards, building on existing partnerships, such as through ASCENT– the Aviation Sustainability Center – and pursue policies to increase the supply and demand of sustainable aviation fuels. In the International Civil Aviation Organization, we will engage in processes to advance a new long-term aspirational goal in line with our vision for reducing greenhouse gas emissions in the aviation sector, and continue to participate in the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA).
Building workforces for the future and ensuring U.S. competitiveness. Climate action is an opportunity to spur job creation while enabling all communities and workers to benefit from the clean energy economy. To create opportunities for American-made solutions to tackle the climate crisis abroad, the United States is announcing new commitments to:
Launching a Global Partnership for Climate-Smart Infrastructure. The U.S. Trade and Development Agency (USTDA) will launch the Global Partnership to connect U.S. industry to major energy and transportation infrastructure investments in emerging markets. This initiative will support the rebuilding of the U.S. middle class through the export of U.S.-manufactured goods and services, while enhancing economic recovery through climate-smart infrastructure development for our partners and allies globally. The Global Climate-Smart Infrastructure Partnership will leverage USTDA’s project preparation and partnership-building tools to support the use of U.S. technologies and services in overseas climate-smart infrastructure projects.
Creating the EXIM Chairman’s Council on Climate. The U.S. Export-Import Bank (EXIM) will create a Chairman’s Council on Climate, a sub-committee of EXIM’s Advisory Committee dedicated to advising EXIM on how to better support U.S. exporters in clean energy, foster the transition to a low-carbon economy, and create clean U.S. jobs at home. Membership will be comprised of a wide range of representatives which could include, for example, members of U.S. industry, the financial sector, trade associations, labor, academia, think tanks, and civil society organizations. EXIM will open applications to the public in summer 2021.
Supporting workers and communities in the shift to a global clean energy future. As the United States moves towards a clean energy economy, it is committed to helping energy workers and communities address the challenges and equitably capitalize on the opportunities associated with this transition. The U.S. Secretary of Energy convened the energy ministers of Canada, India, and the European Commission, along with representatives from the labor and advocacy communities, to begin a discussion on global efforts to address this critical issue. To continue the dialogue, the Department of Energy announced that it is joining Canada, the European Union, and Chile to launch the Empowering People initiative at the Clean Energy Ministerial this June.
Promoting innovation to bring clean technologies to scale. Innovation will spur the technology and transformations necessary to reduce emissions and adapt to climate change at scale, while also creating enormous new economic opportunities to build the industries of the future. To build the future we want, the United States announced:
Clean energy innovation and manufacturing. The United States commits to accelerating the technology progress critical to advancing sustainable development and achieving a net-zero global economy. The effort will spur good-paying American jobs focused on developing, manufacturing, and exporting cost-effective products that support sustainable development across the world. The U.S. Department of Energy will define a series of performance targets and coherently leverage the diverse expertise and talent at American universities, businesses, and national laboratories to accelerate research and development in top linchpin technologies, beginning with: hydrogen, carbon capture, industrial fuels, and energy storage. The targets and roadmaps will look beyond incremental advances and aim, instead, at the game-changing breakthroughs that will secure American leadership in the manufacture of net-zero carbon technologies and support sustainable development around the world. In the coming weeks, the U.S. Department of Energy will convene experts from American academia, business, and the national laboratories to announce the first of these moonshot-style ventures and catalyze the game-changing breakthroughs that will grow new businesses and new jobs domestically and export these net-zero carbon technologies all around the world.
Reinvigorating leadership and participation in Mission Innovation. The Biden-Harris Administration has announced plans to quadruple clean energy innovation funding over the next four years, and the United States is playing a key role in advancing international collaboration on innovation and supporting the launch of Mission Innovation 2.0, including:
Launching, and leading together with international partners, a major Mission Innovation international technology mission on carbon dioxide removal at COP26.
Joining Mission Innovation’s hydrogen mission and co-leading, with Denmark, a mission to reducing greenhouse gas emissions in international shipping, both slated to launch at the June 2021 Mission Innovation ministerial.
Planning to host the co-located 2022 Mission Innovation and Clean Energy Ministerial meetings.
Leading the Agriculture Innovation Mission for Climate. The United States will lead the creation of the Agriculture Innovation Mission for Climate along with the United Arab Emirates and in coordination with several other partner countries. The goal of this initiative is to accelerate innovation and research and development in agricultural and food systems in order to spur low-carbon growth and enhance food security. The initiative will be advanced at the UN Food Systems Summit in September 2021 and launched at COP26 in November 2021 through the UK’s COP26 Campaign for Nature.
Joining the Leadership Group for Industry Transition (LeadIT). The United States will join the Leadership Group for Industry Transition (LeadIT), along with co-founders Sweden and India. LeadIT convenes countries and companies committed to speeding innovation in technologies to reduce greenhouse gas emissions in energy-intensive sectors and speed progress to net-zero emissions by 2050.
Launching a Global Power System Transformation (G-PST) Consortium. To speed progress toward a carbon-free power system by 2035 at home and around the world, the United States, along with the United Kingdom, joined leading power system operators, world-class research institutes, and private institutions from countries at the forefront of power system transitions to launch this new consortium, which couples cutting-edge research with knowledge diffusion to share best-in-class operational, engineering, and workforce development solutions with power system operators around the world. The G-PST Consortium aims to help system operators to permanently change their emissions trajectories while simultaneously improving grid reliability, resiliency, and security and supporting economic growth.
Launching the FIRST Program to support the use of small modular reactors. In support of the Administration’s commitment to increasing reliable energy access worldwide while meeting carbon reduction targets, the Department of State is launching the Foundational Infrastructure for the Responsible Use of Small Modular Reactor Technology (FIRST) Program with an initial $5.3 million investment. FIRST provides capacity-building support to enable partner countries to benefit from advanced nuclear technologies and meet their clean energy goals under the highest standards of nuclear security, safety, and nonproliferation.
Providing urgent support for vulnerable countries to adapt and build resilience to the climate crisis. The climate crisis is already posing challenges to communities at home and around the world. Millions of Americans feel the effects of climate change each year when agriculture fields are flooded, wildfires destroy neighborhoods, and storms knock out power. Communities of color and low-income communities around the country are particularly vulnerable to climate change. Abroad, many vulnerable countries already are facing catastrophic climate impacts. They must build their resilience to the climate crisis now. To strengthen our capacity to help people, reduce future risks and improve resilience, the United States is announcing it is:
Supporting environmental justice and climate resilience. EPA will fund $1 million in grants/cooperative agreements through the Commission on Environmental Cooperation (CEC) to work with underserved and vulnerable communities, including indigenous communities, in Canada, Mexico, and the United States to prepare them for climate-related impacts. This initiative will provide funding directly to community-based organizations to help them develop community-driven solutions to the challenges of climate change. These projects could involve vulnerable communities converting workers to clean jobs, addressing extreme weather impacts, transitioning to clean energy and/or transportation, or utilizing traditional ecological knowledge. Following a competitive process, the most innovative and impactful projects will be approved by consensus by the environment ministers of the three countries. The United States currently chairs the CEC Council.
Partnering with islands to lead on climate and energy resilience. The United States is committed to partnering with small islands in their efforts to combat the climate crisis in ways that reflect their unique cultures and development challenges by building resilience in the face of a changing climate. Working together, the Department of State, the National Oceanic and Atmospheric Administration (NOAA), the Department of Energy (DOE), and the U.S. Agency for International Development (USAID) will launch a new partnership to advance the inclusion of locally generated climate information, knowledge, data and decision support tools in ongoing and emerging sustainability and resilience endeavors in island regions. The Department of State will support a unique island-led partnership, the Local2030 Island Network, which links U.S. island jurisdictions with those around the world in developing common solutions in a shared cultural context. NOAA will work with this network and other partners to enhance the capacity of island nations to integrate climate data and information, and it will apply effective coastal and marine resource management strategies to support sustainable development. DOE will launch the Energy Transitions Initiative – Global, which will focus on transforming the energy systems of and increasing resilience for islands and remote communities, starting in the Caribbean and Asia-Pacific and growing to include other vulnerable communities. USAID, through the Pacific Climate Ready project and the Caribbean Energy and Resilience initiatives, will support small island developing states to strengthen their systems and capacities to become more climate resilient in ways that are country-driven, coordinated, inclusive, and equitable.
Reducing black carbon by investing in clean cookstoves. Household energy emissions have a significant impact on the climate, environment, human health, gender, and livelihoods. In addition, the reduction of short-lived climate pollutants, such as methane and black carbon, can in the short term contribute significantly to keeping a 1.5 degree C limit on global average temperature rise within reach. Given the urgent need for tangible, ambitious, and global action, the U.S. government is announcing that it is resuming and strengthening its commitment to the United Nations Foundation’s Clean Cooking Alliance. The U.S. Environmental Protection Agency (EPA) will work with the Clean Cooking Alliance, other governments, and partners to reduce emissions from home cooking and heating that contribute to climate change and also directly affect the health and livelihoods of almost 40 percent of the world’s population.
Mitigating black carbon health impacts in Indigenous Arctic communities. EPA, working through our partners in the Arctic Council, is pleased to announce the Black Carbon Health in Indigenous Arctic Communities project to be implemented by the Aleut International Association. Indigenous Arctic communities need tools to understand their exposure to black carbon emissions, to help them identify significant local sources, and to share best practices for preventing and mitigating the health impacts of air pollution and climate. The project will help these communities measure, analyze, and addresses black carbon exposure and strengthen their capacity to develop and promote black carbon mitigation strategies.
Implementing nature-based solutions. Nature is a critical part of reaching net-zero emissions and enhancing community resilience. The world’s ocean and forests are critical carbon sinks and a source of life and livelihoods. Recognizing nature’s vital role, the United States is announcing new resources and support for:
Investing in tropical forests to drive towards a net-zero world. Halting deforestation globally, and restoring forests and other ecosystems, is critical to reaching a net-zero emissions world by 2050. The United States is joining together with other governments and private sector companies today to announce the Lowering Emissions by Accelerating Forest finance (LEAF) Coalition. The LEAF Coalition expects to mobilize at least $1 billion this year to incentivize tropical and subtropical countries in reducing emissions from forests by paying for verified emissions reductions that meet a high environmental and social standard. This is a crucial component to raising global climate ambition and to halting and reversing deforestation by 2030.
Funding nature-based approaches to coastal community and ecosystem resilience.The National Oceanic and Atmospheric Administration (NOAA), the National Fish and Wildlife Foundation, and additional governmental and private partners will provide $34 million for nature-based approaches through the National Coastal Resilience Fund. These projects will advance restoration or enhancement of natural features, such as coastal wetlands, dunes, and coral reefs, to protect coastal communities and infrastructure from flooding, while also improving habitat for fish and wildlife. NOAA and the National Fish and Wildlife Foundation commit to advancing the science and practice of implementing nature-based approaches to coastal resilience with international communities of practice by participating in exchanges and dialogues to share the lessons and innovations learned from these projects. The U.S. Fish and Wildlife Service and its partners will also provide $78 million in grants to help conserve or restore nearly 500,000 acres of wetlands in Canada, Mexico, and the United States through the Migratory Bird Conservation Commission.
Promoting resilience in the Southern Ocean. The United States is supporting the three marine protected area proposals in the Southern Ocean before the Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). These unique areas are vulnerable to the impacts of climate change, and they must be protected. The United States is calling on all CCAMLR members to adopt these marine protected areas at this year’s meeting.
Promoting safety and security at home and abroad. Climate change has been identified by the Department of Defense (DoD) as a critical national security threat and threat multiplier. As a result, DoD has undertaken assessments of the impacts that the climate crisis has on American military instillations. Today the United States is announcing:
Conducting climate exposure assessments on all U.S. installations. The DoD is announcing a plan to complete climate exposure assessments on all major U.S. installations within 12 months and all major installations outside the continental U.S. within 24 months using the Defense Climate Assessment Tool (DCAT). The DCAT helps identify the climate hazards to which DoD installations are most exposed, which is the first step in addressing the potential physical harm, security impacts, and degradation in readiness resulting from global climate change.
Supporting assessments in partner countries around the world. The DoD is also announcing its commitment to share the DCAT with a number of attending allied partners and militaries.
Supporting action at every level. Fully addressing the climate crisis requires an all-of-society response. President Biden is committed to working with sub-national actors, business, civil society, indigenous communities, and youth to facilitate collective ambitious action that yields lasting results.
Advancing subnational and non-state engagement abroad. The United States will step up engagement with subnational governments and non-state actors around the world to accelerate climate action. It will also partner with U.S. cities, states, territories, and Tribes in the context of its diplomatic outreach globally, supporting their engagement at UN Climate Change summits and working with other countries to elevate similar efforts.
Catalyzing subnational action and participation in COP26. The United States endorses Race To Zero, a global campaign for net-zero targets from businesses, cities, and regions, and will work to seek additional U.S participants. The United States also announced an intent to commission analysis of the emission reduction potential from subnational leadership worldwide and to work with national and subnational partners globally to achieve this potential.
Today’s announcements are additional steps in the Biden-Harris Administration’s work to advance an unprecedented whole-of-government response to climate change while creating good-paying, union jobs and advancing environmental justice. On his first day in office, President Biden fulfilled his promise to rejoin the Paris Agreement, and one week later he signed an Executive Order on Tackling the Climate Crisis at Home and Abroad. As part of this Order, the President charged federal agencies to take a comprehensive approach to addressing the climate crisis. From reducing emissions to advancing a just transition, the Biden-Harris Administration is committed to working hand in hand with international leaders, civil society, businesses, and communities and getting countries around the world to step up and meet this global challenge.
Building on Past U.S. Leadership, including Efforts by States, Cities, Tribes, and Territories, the New Target Aims at 50-52 Percent Reduction in U.S. Greenhouse Gas Pollution from 2005 Levels in 2030
On Earth Day 2021, President Biden announced a new target for the United States to achieve a 50-52 percent reduction from 2005 levels in economy-wide net greenhouse gas pollution in 2030 – building on progress to-date and by positioning American workers and industry to tackle the climate crisis.
The announcement – made during the Leaders Summit on Climate that President Biden is holding to challenge the world on increased ambition in combating climate change – is part of the President’s focus on building back better in a way that will create millions of good-paying, union jobs, ensure economic competitiveness, advance environmental justice, and improve the health and security of communities across America.
Biden has said often that when he hears the phrase “climate action,” he thinks “jobs.”
This is a fact sheet from the White House:
On Day One, President Biden fulfilled his promise to rejoin the Paris Agreement and set a course for the United States to tackle the climate crisis at home and abroad, reaching net zero emissions economy-wide by no later than 2050. As part of re-entering the Paris Agreement, he also launched a whole-of-government process, organized through his National Climate Task Force, to establish this new 2030 emissions target – known as the “nationally determined contribution” or “NDC,” a formal submission to the United Nations Framework Convention on Climate Change (UNFCCC). Today’s announcement is the product of this government-wide assessment of how to make the most of the opportunity combating climate change presents.
PUSHING PROGRESS, CREATING JOBS, AND ACHIEVING JUSTICE
The United States is not waiting, the costs of delay are too great, and our nation is resolved to act now. Climate change poses an existential threat, but responding to this threat offers an opportunity to support good-paying, union jobs, strengthen America’s working communities, protect public health, and advance environmental justice. Creating jobs and tackling climate change go hand in hand – empowering the U.S. to build more resilient infrastructure, expand access to clean air and drinking water, spur American technological innovations, and create good-paying, union jobs along the way.
To develop the goal, the Administration analyzed how every sector of the economy can spur innovation, unleash new opportunities, drive competitiveness, and cut pollution. The target builds on leadership from mayors, county executives, governors, tribal leaders, businesses, faith groups, cultural institutions, health care organizations, investors, and communities who have worked together tirelessly to ensure sustained progress in reducing pollution in the United States.
Building on and benefiting from that foundation, America’s 2030 target picks up the pace of emissions reductions in the United States, compared to historical levels, while supporting President Biden’s existing goals to create a carbon pollution-free power sector by 2035 and net zero emissions economy by no later than 2050. There are multiple paths to reach these goals, and the U.S. federal, state, local, and tribal governments have many tools available to work with civil society and the private sector to mobilize investment to meet these goals while supporting a strong economy.
SUPPORTING AMERICAN WORKERS
This target prioritizes American workers. Meeting the 2030 emissions target will create millions of good-paying, middle class, union jobs – line workers who will lay thousands of miles of transmission lines for a clean, modern, resilient grid; workers capping abandoned wells and reclaiming mines and stopping methane leaks; autoworkers building modern, efficient, electric vehicles and the charging infrastructure to support them; engineers and construction workers expanding carbon capture and green hydrogen to forge cleaner steel and cement; and farmers using cutting-edge tools to make American soil the next frontier of carbon innovation.
The health of our communities, well-being of our workers, and competitiveness of our economy requires this quick and bold action to reduce greenhouse gas emissions. We must:
Invest in infrastructure and innovation. America must lead the critical industries that produce and deploy the clean technologies that we can harness today – and the ones that we will improve and invent tomorrow.
Fuel an economic recovery that creates jobs. We have the opportunity to fuel an equitable recovery, expand supply chains and bolster manufacturing, create millions of good-paying, union jobs, and build a more sustainable, resilient future.
Breathe clean air and drink clean water and advance environmental justice. We can improve the health and well-being of our families and communities – especially those places too often left out and left behind.
Make it in America. We can bolster our domestic supply chains and position the U.S. to ship American-made, clean energy products — like EV batteries – around the world.
MEETING THE MOMENT
The target is consistent with the President’s goal of achieving net-zero greenhouse gas emissions by no later than 2050 and of limiting global warming to 1.5 degrees Celsius, as the science demands. To develop the target, the Administration:
Used a whole-of-government approach: The NDC was developed by the National Climate Task Force using a whole-of-government approach, relying on a detailed bottom-up analysis that reviewed technology availability, current costs, and future cost reductions, as well as the role of enabling infrastructure. Standards, incentives, programs, and support for innovation were all weighed in the analysis. The National Climate Task Force is developing this into a national climate strategy to be issued later this year.
Consulted important and diverse stakeholders: From unions that collectively bargain for millions of Americans who have built our country and work to keep it running to groups representing tens of millions of advocates and young Americans, the Administration listened to Americans across the country. This also included groups representing thousands of scientists; hundreds of governmental leaders like governors, mayors, and tribal leaders; hundreds of businesses; hundreds of schools and institutions of higher education; as well as with many specialized researchers focused on questions of pollution reduction.
Explored multiple pathways across the economy: The target is grounded in analysis that explored multiple pathways for each economic sector of the economy that produces CO2 and non-CO2 greenhouse gases: electricity, transportation, buildings, industry, and lands.
Each policy considered for reducing emissions is also an opportunity to support good jobs and improve equity:
The United States has set a goal to reach 100 percent carbon pollution-free electricityby 2035, which can be achieved through multiple cost-effective pathways each resulting in meaningful emissions reductions in this decade. That means good-paying jobs deploying carbon pollution-free electricity generating resources, transmission, and energy storage and leveraging the carbon pollution-free energy potential of power plants retrofitted with carbon capture and existing nuclear, while ensuring those facilities meet robust and rigorous standards for worker, public, environmental safety and environmental justice.
The United States can create good-paying jobs and cut emissions and energy costs for families by supporting efficiency upgrades and electrification in buildings through support for job-creating retrofit programs and sustainable affordable housing, wider use of heat pumps and induction stoves, and adoption of modern energy codes for new buildings. The United States will also invest in new technologies to reduce emissions associated with construction, including for high-performance electrified buildings.
The United States can reduce carbon pollution from the transportation sector by reducing tailpipe emissions and boosting the efficiency of cars and trucks; providing funding for charging infrastructure; and spurring research, development, demonstration, and deployment efforts that drive forward very low carbon new-generation renewable fuels for applications like aviation, and other cutting-edge transportation technologies across modes. Investment in a wider array of transportation infrastructure, including transit, rail, and biking improvements, will make more choices available to travelers.
The United States can reduce emissions from forests andagricultureand enhance carbon sinks through a range of programs and measures including nature-based solutions for ecosystems ranging from our forests and agricultural soils to our rivers and coasts. Ocean-based solutions can also contribute towards reducing U.S. emissions.
The United States can address carbon pollution from industrial processes by supporting carbon capture as well as new sources of hydrogen—produced from renewable energy, nuclear energy, or waste—to power industrial facilities. The government can use its procurement power to support early markets for these very low- and zero-carbon industrial goods.
The United States will also reduce non-CO2 greenhouse gases, including methane, hydrofluorocarbons and other potent short-lived climate pollutants. Reducing these pollutants delivers fast climate benefits.
In addition, the United States will invest ininnovation to improve and broaden the set of solutions as a critical complement to deploying the affordable, reliable, and resilient clean technologies and infrastructure available today.
America must act— and not just the federal government, but cities and states, small and big business, working communities. Together, we can seize the opportunity to drive prosperity, create jobs, and build the clean energy economy of tomorrow.
The Biden Administration has recognized that the availability of affordable child care is the essential grease to the economy’s gears. The White House has issued a fact sheet detailing $39 billion in American Rescue Plan funding “to rescue the child care industry so the economy can recover”:
Today, the Biden Administration is announcing the release of $39 billion of American Rescue Plan funds to states, territories, and tribes to address the child care crisis caused by COVID-19. These funds will help early childhood educators and family child care providers keep their doors open. These providers have been on the frontlines caring for the children of essential workers and support parents, especially mothers, who want to get back to work. These funds are a critical step to pave the way for a strong economic recovery and a more equitable future.
Over the past 40 years, as more women entered the labor force and brought home larger paychecks, they have driven 91 percent of the income gains experienced by middle-class families. But, since the start of the COVID-19 public health emergency, roughly 2 million women have left the labor force, disproportionately due to caregiving needs and undoing decades of progress improving women’s labor force participation rate. Even as many fathers have returned to work, mothers, especially those without a four-year college degree, have not done so at similar rates. As a result, the gender earnings gap is predicted to increase by 5 percentage points in this recession, hurting our families and economy. As women work to regain employment, families with young children, and especially families of color where mothers are more likely to be sole or primary breadwinners, may face financial burdens for years to come. Parents need access to safe, quality child care to get back to work.
At the same time, early childhood and child care providers – nearly all small businesses, overwhelmingly owned by women and disproportionately owned by people of color – have been hit hard by the pandemic and are struggling to continue to provide essential services. Providers have faced decreasing revenues due to lower enrollment while also shouldering higher expenses – 47 percent higher by one estimate – for personal protective equipment (PPE), sanitation, additional staff, and other needs to operate safely. They were already operating on extremely thin margins before the pandemic. According to one survey, as of December, about one in four child care providers open at the start of the pandemic were closed, hindering access to care, especially for families of color. These closures exacerbated access challenges that existed before the pandemic when half of all Americans lived in a child care desert. Child care providers who have stayed open have gone to enormous lengths to do so: two in five providers report taking on debt for their programs using personal credit cards to pay for increased costs and three in five work in programs that have reduced expenses through layoffs, furloughs, or pay cuts. One in six child care jobs, generally held by women of color, still haven’t come back – much more than the one in twenty jobs that have been lost throughout the economy.
That is why President Biden prioritized addressing the child care crisis caused by COVID-19 as part of the American Rescue Plan. Today’s $39 billion funding release will provide a lifeline to hundreds of thousands of childcare providers and early childhood educators, provide a safe and healthy learning environment for more than 5 million children, and help parents, especially mothers, get back to work. States, tribes, and territories can use these funds to:
Help hundreds of thousands child care centers and family child care providers, which are mostly very small businesses, stay open or reopen including by making rent or mortgage payments, helping with utility or insurance bills, maintaining or improving facilities, and paying off debt incurred during the pandemic.
Support providers with funds to enable safe and healthy learning environments for more than 5 million of children, including by purchasing masks, implementing physical distancing, improving ventilation, and cleaning consistently, so both centers and family providers can comply with CDC’s Guidance for Operating Child Care Programs during COVID-19. This funding complements the President’s efforts to prioritize early childhood educators for vaccination – child care workers remain eligible for vaccinations and nearly 80 percent of the educators who work with children from birth to 12th grade received at least their first shot of a COVID-19 vaccine during the month of March. Providers can also use these funds to support the mental health of both children and early educators so that they can meet any social and emotional needs exacerbated by the pandemic as centers reopen and parents go back to work.
Keep child care workers, disproportionately women of color and immigrants, on the payroll and rehire those who have been laid off. Child care workers are essential to meeting the child care needs of families and providing quality are to children, but providers have been forced to lay off, furlough, or reduce pay of workers to survive – exacerbating issues faced by a workforce that has long faced low pay and high turnover. Providers can use these funds to keep workers on payroll, rehire laid off workers and recruit new workers, and increase the pay and benefits of child care workers and family child care providers.
Provide families with the greatest need access to affordable care. States, tribes, and territories can provide direct subsidies to more than 800,000 hard-pressed families earning below 85% state median income and families performing essential work, to help cover the cost of care.
Start to lay the foundation for a stronger child care system, so families can access the high-quality care they need. As states, tribes, and territories address the immediate crisis, they can also make a down payment on President Biden’s commitment to a stronger, more equitable early childhood education system. For example, states, tribes, and territories can set reimbursement rates at a level that will help children receive high-quality care and can increase access to care, including on the evenings and weekends when many essential workers need care.
The American Rescue Plan also included an historic increase in support for child care through the tax code, helping millions of working families afford needed care. Last year, a family claiming a Child and Dependent Care Tax Credit (CDCTC) got less than $700 on average towards the cost of care, and many low-income working families often got nothing. Thanks to the historic expansion of the CDCTC in the American Recovery Plan, a median income family with two kids under age 13 will receive up to $8,000 towards their child care expenses when they file taxes for 2021, compared with a maximum of $1,200 previously.
In 2020, the CDCTC provides a tax credit typically capped at $600 for one child, for families with at least $3,000 in eligible expenses, and capped at $1,200 for two children or more for families with at least $6,000 in child care expenses.
Under the American Rescue Plan’s expansion of the CDCTC, all families with incomes below $125,000 will save up to half the cost of their eligible child care expenses, getting back up to $4,000 for one child and $8,000 for two or more children, when they file taxes for 2021. And, families making between $125,000 and $438,000 can receive a partial credit.
And for the first time, the CDCTC will be fully refundable, making the credit fairer by allowing low-income working families to receive the full value of the credit towards their eligible child care expenses regardless of how much they owe on their 2021 taxes.
In the coming weeks, the administration will release:
Guidance to states, tribes, and territories, while also providing technical assistance like webinars and peer-to-peer learning opportunities, to support states, tribes, and territories as they make historic investments in saving and rebuilding their child care systems, provide high-quality care to children, and get families back to work.
Frequently Asked Questions on the Child and Dependent Care Tax Credit to equip parents with the information they need to claim the credit next year.
Help from the American Rescue Plan is coming to states, territories, and tribes. The $39 billion will be provided through two funds: (1) $24 billion in child care stabilization funding for child care providers to reopen or stay open, provide safe and healthy learning environments, keep workers on payroll, and provide mental health supports for educators and children, and (2) $15 billion in more flexible funding for states to make child care more affordable for more families, increase access to high-quality care for families receiving subsidies, increase compensation for early childhood workers, and meet other care needs in their states. A breakdown by state, tribe and territory is below.
Today, the White House released state-by-state fact sheets that highlight the urgent need in every state across the country for the investments proposed by President Biden in the American Jobs Plan. The fact sheets highlight the number of bridges and miles of road in each state in poor condition, the percentage of households without access to broadband, the billions of dollars required for water infrastructure, among other infrastructure needs.
Individual fact sheets for each of the 50 states, the District of Columbia and Puerto Rico are linked below.
These fact sheets are the latest in a series from the White House highlighting the benefits of the American Jobs Plan for communities. Additional issue-based fact sheets will be released in the coming days and weeks. Fact sheets on how the American Jobs Plan Advances Racial Equity and the American Jobs Plan Supports Rural America have been released in recent weeks.
The American Jobs Plan is an investment in America that will create millions of good jobs, rebuild our country’s infrastructure, and position the United States to out-compete China.
The Biden-Harris Administration is initiating an ambitious innovation effort to create American jobs while tackling the climate crisis, which includes the launch of a new research working group, an outline of the Administration’s innovation agenda, and a new $100 million funding opportunity from the U.S. Department of Energy to support transformational low-carbon energy technologies. The announcements kick start the Administration’s undertaking to spur the creation of new jobs, technology, and tools that empower the United States to innovate and lead the world in addressing the climate crisis.
President Biden is fulfilling his promise to accelerate R&D investments, creating a new Climate Innovation Working Group as part of the National Climate Task Force to advance his commitment to launching an Advanced Research Projects Agency-Climate (ARPA-C). The working group will help coordinate and strengthen federal government-wide efforts to foster affordable, game-changing technologies that can help America achieve the President’s goal of net zero economy-wide emissions by 2050 and can protect the American people from the impacts of droughts and flooding, bigger wildfires, and stronger hurricanes. The working group will be co-chaired by the White House Office of Domestic Climate Policy, Office of Science of Technology and Policy, and Office of Management and Budget.
“We are tapping into the imagination, talent, and grit of America’s innovators, scientists, and workers to spearhead a national effort that empowers the United States to lead the world in tackling the climate crisis,” said Gina McCarthy, President Biden’s National Climate Advisor. “At the same time, we are positioning America to create good-paying, union jobs in a just and equitable way in communities across the nation that will be at the forefront of new manufacturing for clean energy and new technology, tools, and infrastructure that will help us adapt to a changing climate.”
As the opportunity for American leadership in climate innovation is vast, the Administration is outlining key planks of an agenda the Climate Innovation Working Group will help advance:
zero net carbon buildings at zero net cost, including carbon-neutral construction materials;
energy storage at one-tenth the cost of today’s alternatives;
advanced energy system management tools to plan for and operate a grid powered by zero carbon power plants;
very low-cost zero carbon on-road vehicles and transit systems;
new, sustainable fuels for aircraft and ships, as well as improvements in broader aircraft and ship efficiency and transportation management;
affordable refrigeration, air conditioning, and heat pumps made without refrigerants that warm the planet;
carbon-free heat and industrial processes that capture emissions for making steel, concrete, chemicals, and other important industrial products;
carbon-free hydrogen at a lower cost than hydrogen made from polluting alternatives;
innovative soil management, plant biologies, and agricultural techniques to remove carbon dioxide from the air and store it in the ground;
direct air capture systems and retrofits to existing industrial and power plant exhausts to capture carbon dioxide and use it to make alternative products or permanently sequester it deep underground.
As a first example of the widespread innovation effort, the U.S. Department of Energy is announcing $100 million in funding via the Advanced Research Projects Agency-Energy (ARPA-E) to support transformational low-carbon energy technologies. The ARPA-E announcement invites experts across the country to submit proposals for funding to support early-stage research into potentially disruptive energy technologies, specifically encouraging inter-disciplinary approaches and collaboration across sectors.
“Today we are inviting scientists, inventors, entrepreneurs and creative thinkers across America to join us in developing the clean energy technologies we need to tackle the climate crisis and build a new more equitable clean energy economy,” said DOE Chief of Staff Tarak Shah. “The Department of Energy is committed to empowering innovators to think boldly and create the cutting-edge technologies that will usher in our clean energy future and create millions of good-paying jobs.”
In addition to supporting technologies that are near commercialization, the Climate Innovation Working Group will also emphasize research to bolster and build critical clean energy supply chains in the United States and strengthen American manufacturing. As it coordinates climate innovation across the federal government, it will focus on programs at land-grant universities, Historically Black Colleges and Universities, and other minority-serving institutions.
“Today is an important day for tackling the climate crisis through cutting-edge science, technology, and innovation. The Office of Science and Technology Policy is ready to help turbocharge climate-related innovation, and we look forward to engaging with scientists, engineers, students, and innovators all across America to build a future in which not only jobs and economic benefits but also opportunities to participate in climate innovation are shared equitably by all Americans,” said Kei Koizumi, Acting Director of the White House Office of Science and Technology Policy.
Biden Administration Holds First National Climate Task Force Meeting
Today, National Climate Advisor Gina McCarthy convened the first-ever National Climate Task Force meeting as outlined by President Biden’s January 27 executive order on tackling the climate crisis. The Task Force is chaired by the National Climate Advisor and includes Cabinet-level leaders from 21 federal agencies and senior White House officials to kick start the Biden-Harris Administration’s implementation of a whole-of-government approach to tackling climate change, creating good-paying, union jobs, and achieving environmental justice.
During the virtual inaugural convening of the Task Force, representatives from more than 20 federal agencies and offices underscored the shared commitment of every agency in collaborating and coordinating across the federal government to ensure the United States leads the world in a clean energy revolution that creates American jobs with the chance to join a union and builds back an inclusive, equitable economy.
Additionally, Vice President Harris dropped by the Task Force meeting to greet participants and underscore her and President Biden’s commitment to overseeing an unprecedented approach to tackling climate change at home and abroad, making sure that every agency plays a role and has the White House’s support in working together. A longtime fighter for environmental justice, the Vice President discussed the need to focus on those communities that are most vulnerable to climate change.
Agency leadership and senior White House officials also discussed the National Climate Task Force Charter, early actions, near-term priorities and key milestones, and the role of the White House Office of Domestic Climate Policy. Additionally, participants were invited to highlight the ways their agencies and staff are prioritizing climate throughout all of their decision making and how they plan to collaborate with additional agency partners.
As outlined in President Biden’s January 27th executive order on tackling the climate crises, Task Force membership is comprised of the following government officials:
National Climate Advisor (Chair)
Secretary of the Treasury
Secretary of Defense
Attorney General
Secretary of the Interior
Secretary of Agriculture
Secretary of Commerce
Secretary of Education*
Secretary of Labor
Secretary of Health and Human Services
Secretary of Housing and Urban Development
Secretary of Transportation
Secretary of Energy
Secretary of Homeland Security
Administrator of General Services
Chair of the Council on Environmental Quality
Administrator of the Environmental Protection Agency
Director of the Office of Management and Budget
Director of the Office of Science and Technology Policy
Assistant to the President for Domestic Policy
Assistant to the President for National Security Affairs
Assistant to the President for Homeland Security and Counterterrorism
The reactions could not be more stark between the ignorant, self-serving do-nothing response of Trump who is obsessively focused on overturning the free-and-fair election that deposed him (and pardoning criminal allies and family members), and the thoughtful, insightful, methodical focus of President-Elect Joe Biden on how to combat both the coronavirus crisis and the related jobs crisis. Biden’s remarks come in response to November’s jobs report that, even before the massive skyrocketing in COVID-19 cases, hospitalizations and deaths across the nation, showed a disturbing slowdown in economic recovery, with only 245,000 jobs added when well over 400,000 were expected, and an unemployment rate, which while dipping to 6.7%, does not reflect the 4 million people who have dropped out of the workforce and aren’t looking for jobs. The truer unemployment rate would be over 8%. Biden, in his remarks, was optimistic about a spurt of bi-partisanship that may produce a $900 billion COVID relief package, but says that is only a “downpayment” – an emergency relief to keep people from losing their homes and the ability to feed their family – on what will be necessary.
Already, the failure of Republicans to allocate aid to states and localities has resulted in 1 million layoffs of critical workers, with many more teachers, firefighters and hospital workers who will lose their jobs when they are most needed. Moreover, though the administration is touting the near availability of a COVID-19 vaccine, it has failed to actually contemplate how to distribute it, administer shots, or who will pay for the health workers to administer the vaccinations to the general public. (Reminder, you need 70 percent of the population to get the vaccinations in order to even begin to have “herd immunity” to end the pandemic.) But actually sparking the economy again will require real stimulus spending, for much needed and neglected infrastructure. Here are President-Elect Biden’s remarks, as prepared for delivery in Wilmington, Delaware: –Karen Rubin/news-photos-features.com
Good afternoon.
Earlier today, the November jobs report was released.
It’s a grim report. It shows an economy that is stalling.
We remain in the midst of one of the worst economic and jobs crises in modern history.
But it doesn’t have to stay that way.
If we act now, we can regain momentum and start to build for the future. There is no time to lose.
Millions of people have lost their jobs or had their hours slashed. They’ve lost their health insurance or are in danger of losing it. One in every six renters was behind on rent. One in four small businesses can’t keep their doors open. An ongoing gap in Black and Latino unemployment remains too large.
And it’s deeply troubling that last month’s drop in overall unemployment was driven by people dropping out of the labor market altogether. They’ve lost hope for finding a job, or they’ve taken on full-time caregiving responsibilities as child care centers remain closed and their children learn remotely.
Over the last three months, 2.3 million more people are in long-term unemployment — by far the largest increase on record.
And this dire jobs report is a snapshot from mid-November before the surge in COVID cases and deaths in December as we head into a dark winter.
For example, since October, cities are down 21,000 educators — just as schools need more help in the fight against the pandemic.
A couple of days ago I spoke with a school crossing guard, a server, a restaurant owner, and a stagehand. Good people, honorable people — decent Americans from across the country.
They remind me of my Dad who lost his job in Scranton and eventually moved our family to Claymont, Delaware, just outside of Wilmington.
He used to say, “Joey, I don’t expect the government to solve my problems. But I expect it to understand my problems.”
The folks out there aren’t looking for a handout. They just need help. They’re in trouble through no fault of their own. They need us to understand.
We are in crisis. We need to come together as a nation.
And we need Congress to act — and act now.
If Congress and President Trump fail to act by the end of December, 12 million Americans will lose the unemployment benefits they rely on to keep food on the table and pay their bills.
Emergency paid leave will end. The moratorium on evictions will expire. States will lose the vital tools they need to pay for COVID testing and public health workers.
It will be harder for states to keep children and educators safe in schools and to provide assistance to keep small businesses alive.
States and cities are already facing large budget shortfalls this year.
They have already laid off more than a million workers — and even more teachers. Firefighters and cops will lose their jobs unless the federal government steps up now. And all of this weakens our ability to control the virus.
Emergency paid leave reduces the spread of COVID, because it allows people to stay home when they are sick.
States and cities need funding to direct COVID response — which is the only way we can end this crisis and get people back to work.
The situation is urgent. If we don’t act now, the future will be bleak.
Americans need help and they need it now, and they’ll need more come early next year.
I am encouraged by the bipartisan efforts in the Senate around a $900 billion package of relief.
And as Congress works out the details of the relief package, we must focus on resources for the direct public health response to COVID-19.
We need meaningful funding for vaccines now so that we don’t lose time and leave people waiting for additional months.
We need serious funding for testing now so we can ramp up testing and allow our schools and businesses to operate safely.
The sooner we pass this funding, the sooner we can turn the corner on COVID-19.
In the weeks since the election ended, there were questions about whether Democrats and Republicans could work together.
Right now, they are showing they can. Congress and President Trump must get a deal done for the American people.
But any package passed in the lame duck session is not enough. It’s just the start.
Congress will need to act again in January.
Earlier today, I consulted with members of the economic team Vice President-elect Harris and I announced this week.
As we inherit the public health and economic crises, we are working on the plan that we will put forward for the next Congress — to move fast, to control the pandemic, to revive the economy, and to build back better than before.
We hope to see the same kind of spirit — of bipartisan cooperation —as we are seeing today.
And our plan is based on input from a broad range of people who Vice President-elect Harris and I have been meeting with since winning the election last month.
Labor leaders, CEOs, Mayors and Governors of both parties. Parents, educators, workers, and small business owners.
There is consensus that, as we battle COVID-19, we have to make sure that businesses and workers have the tools, resources, guidance, and health and safety standards to keep businesses and schools open safely.
Because here’s the deal:
The fight against COVID won’t be won in January alone.
To truly end this crisis, Congress will need to fund more testing as well as the equitable and free distribution of the vaccine.
We’ll need more economic relief as a bridge through 2021 until both the pandemic and economic crises are over.
And, then we’ll need to build back better. An independent analysis by Moody’s — a well-respected Wall Street firm — projects my Build Back Better plan will create 18.6 million jobs.
It’s based on a simple premise: reward work in America — not wealth.
We will invest in infrastructure, clean energy, manufacturing, and so much more.
This will create millions of good-paying American jobs and get the job market back on the path toward full employment. This will raise incomes, reduce drug prices, advance racial equity across the economy, and restore the backbone of this country, the middle class.
Bottom line, it’s essential that we provide immediate relief for working families and businesses.
Not just to help them get to the other side of this painful crisis, but to avoid the broader economic costs due to long-term unemployment and businesses failing.
And by acting now, even with deficit financing, we can add to growth in the near future.
In fact, economic research shows that with conditions like today’s crisis — especially with such low interest rates — not taking the actions I’m proposing, will hurt the economy, scar the workforce, reduce growth, and add to the national debt.
I know times are tough, the challenges are daunting, but I know we can do this.
We can create an economic recovery for all. We can move from crisis to recovery to resurgence.
This is the United States of America. We’ve done it before. We will do it again.
May God bless America. May God protect our troops.
