Inflation concerns spark new political fights

Biden administration officials are insisting that the recent inflation spike will be temporary, but political challenges are already emerging from the historically high price levels that have yet to show any signs of receding.

Inflationary speed bumps are hitting the economy as it recovers from the coronavirus pandemic, causing anxiety in the business community and prompting Republicans to reposition themselves as the fiscally responsible party heading into a debt ceiling fight.

Federal Reserve officials say they’re now expecting inflation to rise 3.4 percent in 2021, compared with 2.4 percent just two months ago. They also raised their economic growth forecast for the year to 7 percent, from 6.5 percent in March.

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A White House official told The Hill that the updated figures reaffirm that President BidenJoe BidenObama: Ensuring democracy ‘continues to work effectively’ keeps me ‘up at night’ New Jersey landlords prohibited from asking potential tenants about criminal records Overnight Defense: Pentagon pulling some air defense assets from Middle East | Dems introduce resolution apologizing to LGBT community for discrimination | White House denies pausing military aid package to Ukraine MORE’s economic plan is working.

“That’s the story of President Biden’s presidency after just five months in office: economic growth is up, unemployment is down, and America is roaring back thanks to the President’s leadership,” the official said.

But GOP lawmakers argue that both government spending and inflation are spiraling out of control.

Republican Study Committee Chairman Jim Banks (R-Ind.) this week sent a memo to members of the largest GOP caucus on Capitol Hill outlining demands heading into a fight over raising the debt limit.

“Given the worsening fiscal outlook for the federal government and at least 3 ½ more years of President Biden proposing trillions and trillions of dollars of deficit-financed spending, it is more important than ever for conservatives to reclaim the debt limit as a tool to highlight and force action on our nation’s spending problem,” Banks wrote.

A two-year deal reached in 2019 to suspend the legal limit on how much debt the federal government can owe is set to expire on Aug. 1. Failure to reach an agreement on the debt ceiling could lead to the U.S. government defaulting on its debt, a move that would likely trigger chaos in the global financial system.

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For that reason, Republican lawmakers are planning to use the upcoming deadline to extract spending cuts. Several GOP senators warned Treasury Secretary Janet YellenJanet Louise YellenOn The Money: Centrists gain leverage over progressives in Senate infrastructure battle | White House rules out gas tax hike Inflation concerns spark new political fights Irish finance minister seeks compromise on global minimum tax MORE in hearings this week that the White House must rein in its spending plans, citing inflation as a concern.

“If inflation expectations become unanchored, which no one can credibly claim cannot happen, the resulting increased interest rates can turn federal debt service costs into budget busters,” Sen. Mike CrapoMichael (Mike) Dean CrapoInflation concerns spark new political fights Yellen confident rising inflation won’t be ‘permanent’ On The Money: Schumer to trigger reconciliation process on Wednesday | Four states emerge as test case for cutting off jobless benefits MORE (R-Idaho) told Yellen at a Senate Finance Committee hearing Wednesday.

Yellen and the broader Biden economic team have expressed confidence that inflation will eventually cool down, and Fed officials, like most economists, expect annual inflation to settle down as pandemic-related constraints ease.

Still, that’s not making it any easier to sell the president’s infrastructure proposal and budget request for 2022.

The U.S. Chamber of Commerce, the biggest pro-business lobbying group in the U.S., argues that the possibility of inflation running longer than expected is more likely if Democrats plow ahead with plans to spend trillions more this year.

“For the most part, the administration can’t do a lot about inflation. But what they can do is not make it worse by having huge spending bills,” said Curtis Dubay, senior economist at the Chamber. “The administration has a case to say, ‘This is not anything about what we’ve done,’ if they do not make things worse in the meantime.”

In a Thursday blog post, White House economists Susan Helper and Evan Soltas laid out how the rush toward reopening has strained suppliers and industries that were largely idle during the depths of the pandemic.

“While a fast pivot to growth is good news for businesses and workers, it also creates challenges. Entire industries that shrank dramatically during the pandemic, such as the hotel and restaurant sectors, are now trying to reopen,” they wrote.

“These shortages and supply-chain disruptions are significant and widespread—but are likely to be transitory,” they continued. “While markets will eventually adjust, they can be slow and the impact on producers and consumers can be costly.”

The Business Roundtable, the top CEO trade group, shared the Chamber’s fears that inflation could go on longer than the White House expects.

“The hope of the Fed is that this is transitory. The question is, how long is transitory? Is it six months? Is it 12 months? Or have we gotten into what would unfortunately be an inflationary cycle where wage growth follows wage growth follows wage growth, which means it’s not transitory,” said Gregory Hayes, CEO of Raytheon and head of the Business Roundtable’s Tax & Fiscal Policy Committee.

The White House is steadfast in its belief that inflation concerns will be resolved in a matter of months.

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“I think the success of our vaccination campaign surprised many people, and so they weren’t prepared for demand to rebound in this way. But we still expect this to be transitory in nature,” Deputy Director of the National Economic Council Sameera Fazili told reporters earlier this month. “We’re going to keep an eye on it, but we think it should resolve in the next few months.”

That projection is “very rosy” from the Chamber’s perspective.

“You have workforce issues playing into supply chain issues. While some things subside, other things will pop up,” Dubay said. “It’s going to take until 2022 until we get back to normal or new normal—some things are going to change.”

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Biden taps ex-New Mexico lawmaker for USDA post

President BidenJoe BidenObama: Ensuring democracy ‘continues to work effectively’ keeps me ‘up at night’ New Jersey landlords prohibited from asking potential tenants about criminal records Overnight Defense: Pentagon pulling some air defense assets from Middle East | Dems introduce resolution apologizing to LGBT community for discrimination | White House denies pausing military aid package to Ukraine MORE on Friday announced he plans to nominate former Rep. Xochitl Torres Small (D-N.M.) for a role in the Department of Agriculture (USDA) after she lost her reelection bid last November.

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If confirmed, Torres Small would serve as the undersecretary of rural development at the USDA. The White House touted her political organizing experience in rural New Mexico and her term representing the state’s second congressional district, which includes large swaths of rural land.

“Throughout her career, Torres Small has employed her experience organizing in vulnerable, rural communities to achieve lasting investments that combat persistent poverty,” the White House said.

In winning her 2018 race, Torres Small became the first woman and first person of color to represent New Mexico’s 2nd District. Torres Small lost her reelection bid in 2020 by roughly 20,000 votes to Republican Yvette Herrell.

Torres Small, who is 36, is the second lawmaker who lost in 2020 to get a spot in the Biden administration. Biden previously nominated former Rep. Gil CisnerosGilbert (Gil) Ray CisnerosMORE (D-Calif.) for an undersecretary role in the Defense department.

NATO expanding defense clause to attacks in space

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A top NATO official on Monday said the alliance will expand its defense clause to include attacks in space, ahead of a scheduled summit between member state leaders.

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NATO Secretary-General Jens Stoltenberg, the coalition’s top civilian official, announced the group’s intention to expand Article 5, which says any attack on one of the alliance’s 30 allies will be considered an attack on them all.

“I think it is important [with] our Article 5, which states that an attack on one will be regarded as an attack on all, that we all will respond,” Stoltenberg said at a German Marshall Fund think tank event, according to The Associated Press.

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“We will make it clear at this summit that, of course, any attack on space capabilities like satellites and so on or attacks from space will or could trigger Article 5,” he added.

The U.S. Space Force was officially created in December 2019, after then-President TrumpDonald TrumpBiden prepares to confront Putin Biden aims to bolster troubled Turkey ties in first Erdoğan meeting Senate investigation of insurrection falls short MORE signed the annual defense policy bill that established the force as the sixth branch of the U.S. military.

That same month, NATO leaders proclaimed space to be the coalition’s “fifth domain” of operations, following land, sea, air and cyberspace, according to the AP.

The wire service noted that of the around 2,000 satellites orbiting earth, more than half are operated by NATO countries.

Biden is scheduled to participate in a NATO Summit on Monday in Brussels.

EPA puts additional delay on Trump lead and copper in drinking water rule

The Environmental Protection Agency (EPA) has put another delay on a Trump-era update to a rule governing lead and copper in drinking water, according to a new federal register notice.

The notice says that the rule, which was previously expected to take effect on Thursday, will now take effect on December 16. It also pushed back the date at which it requires compliance by one month until October 16, 2024. 

The Trump changes to the Lead and Copper Rule (LCR) are expected to quicken the speed at which cities need to notify people who may have been exposed to lead but give utilities a longer timeline to replace lead-tainted service lines. 

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The rule was originally expected to go into effect in March, but it was first delayed until this week before the latest move to push it until December.

The EPA’s website says that the further delay is part of its effort to “take the time necessary to review the LCR Revisions and ensure that it protects families and communities.”

The Biden White House has identified the Trump rule as one of dozens it would seek to review. 

The Trump administration’s rule would require monitoring for lead at primary schools and child care centers. It would also require cities to notify residents of potential lead exposure within 24 hours. 

However, the rule extends the amount of time utilities have to replace the lead service lines that connect homes to the water supply. Critics argue that the extension could allow lead-tainted pipes to remain underground for another 30 years.

The rule also does not enact a stricter limit on lead levels in water, which advocates say is necessary to protect health. The rule creates a 10 parts per billion (ppb) “trigger” level at which cities would need to reevaluate their water treatment processes and possibly add corrosion-control chemicals to city water.

But it keeps the previously set 15 ppb level that requires cities to begin replacing the nation’s lead service lines that connect homes to city water supplies — the underlying source of lead contamination. 

Exposure to lead can harm children’s health and cause brain and nervous system damage, slowed growth and development and issues with learning, behavior, hearing and speech. 

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China supplies millions of vaccine doses to developing nations in Asia

China has been supplying millions of COVID-19 vaccine doses to developing nations in Asia in 2021. 

This past weekend, millions of doses from China landed in capitals in Southeast and South Asia including Cambodia’s capital city, the Wall Street Journal reported.

Through the last few weeks, China has sent vaccine doses to Manila, Bangkok, Kathmandu and Jakarta. 

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China has developed two main vaccines, Sinovac and Sinopharm, that the country recently approved for children as young as three years old.

Cambodia is mostly using China’s vaccines and Nepal has received 1.8 million doses of them. Sri Lanka is buying 14 million doses of the Chinese Sinopharm vaccine while Bangladesh is looking to buy 15 million doses, according to WSJ. 

Numerous countries are using the Chinese coronavirus vaccines for a high percentage of its vaccinations.

Half of the vaccine doses in the Philippines and 89 percent of Indonesia’s doses are from China.

The doses coming from China have helped many of the countries jump start their vaccine drives and hit goals they were struggling to make.

China is using this opportunity to form ties with the countries and attack Western countries saying they are hoarding vaccines, WSJ noted.

Western countries have only recently been moving to donate vaccines to poorer countries as President Joe BidenJoe BidenJapan to possibly ease COVID-19 restrictions before Olympics 14 Republicans vote against making Juneteenth a federal holiday China supplies millions of vaccine doses to developing nations in Asia MORE and other G-7 members revealed their plan to donate one billion vaccines around the world. 

Richer countries have been under pressure to donate more doses to poorer countries as richer nations have vaccinated millions of their citizens and opened their borders while poorer countries are getting hit with another wave of the pandemic. 

Justice Department releases new body camera footage from Capitol riot

The Department of Justice (DOJ) on Thursday released new footage from the deadly Jan. 6 Capitol riot to be used in the case against a former Marine accused of wielding a flag pole and threatening Capitol police officers.

The footage shows Thomas Webster, former Marine and retired New York City Police Department officer, screaming at officers, rushing them with a flagpole and engaging in hand-to-hand combat, CNN reports.

Stills from the video — which show Webster waving a metal pole above his head and at one point pinning an officer to the ground — are included in the DOJ’s criminal complaint against Webster.

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According to the DOJ, Webster screamed, “You f—ing piece of shit. You f—ing Commie motherf—ers, man … Come on, take your shit off. Take your shit off,” at an officer before assaulting him.

The officer told prosecutors that Webster attempted to remove his helmet, with the chin strap choking him and preventing him from breathing. Prosecutors also pointed to a video uploaded to YouTube that shows Webster apparently at the bottom of a staircase that leads to the Upper West Terrace of the Capitol.

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In the video Webster, appearing to be wearing body armor, looks into the camera and says, “Send more patriots. We need some help.”

The administrator of the high school that Webster’s children attend identified the former police officer, having seen him many times at the school.

Webster currently faces seven federal charges including disorderly conduct and physical violence on Capitol grounds.

Nat Geo recognizes Southern Ocean as 5th official ocean

National Geographic has labeled the Southern Ocean as the world’s fifth official ocean in light of a growing number of scientists and researchers recognizing the waters swirling around Antarctica as a distinct area. 

The environmental news network announced the decision Tuesday in honor of World Oceans Day, adding the Southern Ocean to the four bodies of water already internationally recognized: Atlantic, Pacific, Indian and Arctic. 

National Geographic Society Geographer Alex Tait said in a statement, “The Southern Ocean has long been recognized by scientists, but because there was never agreement internationally, we never officially recognized it.” 

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Tait told NPR’s “All Things Considered” this week that while the four other oceans are “defined primarily by land masses,” National Geographic decided to add the Southern Ocean as the fifth one “because it’s so unique and because we want to bring attention to all areas of the ocean.”

National Geographic noted Tuesday that the Southern Ocean can be differentiated based on its current, known as the Antarctic Circumpolar Current (ACC), which was established 34 million years ago when Antarctica separated from South America. 

Waters within the ACC are known to be colder and slightly less salty than ocean waters to the north, according to National Geographic. 

The ACC is also responsible for helping to regulate the Earth’s climate, with scientists currently studying how human-induced climate change may be altering the characteristics of the Southern Ocean. 

While the U.S. Board on Geographic Names has used the Southern Ocean label since 1999, the National Oceanic and Atmospheric Administration (NOAA) did not officially label the waters as distinct until February of this year. 

In a statement on its website, NOAA called the Southern Ocean the “‘newest’ named ocean,” defining it as the “body of water extending from the coast of Antarctica to the line of latitude at 60 degrees South.” 

However, NOAA noted at the time that not all countries agree on the exact boundaries of the Southern Ocean, and the proposed area has yet to be ratified by the International Hydrographic Organization.

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Key progressive calls for bipartisan infrastructure talks to end

Rep. Pramila JayapalPramila JayapalOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax New report reignites push for wealth tax House moderates unveil .25T infrastructure plan MORE (D-Wash.), the chairwoman of the Congressional Progressive Caucus, says bipartisan infrastructure talks are proving to be a waste of time and urged Democratic leaders to move forward with a reconciliation bill that doesn’t need Republican votes to pass.

“In case it wasn’t clear already, it certainly is now: Republicans are not going to do what needs to be done for working families. It would be foolish to think that Republican senators will suddenly go against [Senate Majority] Leader [Mitch] McConnell’s [R-Ky.] goal of dedicating 100 percent of his energy toward blocking President BidenJoe BidenWhite House announces major boost to global vaccine supply U.S. in talks to buy Moderna’s COVID-19 vaccine to send abroad: report Pentagon to consider authorizing airstrikes in Afghanistan if country falls into crisis: report MORE’s agenda,” she said in a statement.

Jayapal urged the Senate and House to “immediately begin working on budget resolutions to pass the American Jobs and Families Plan through reconciliation so we can deliver on our promises.”

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She issued her statement shortly after President Biden suspended his weeks-long negotiation with Sen. Shelley Moore CapitoShelley Wellons Moore CapitoOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax Five things to watch on Biden’s first foreign trip America needs private investment — not public infrastructure MORE (R-W.Va.) on a bipartisan infrastructure package that would cost less than Biden’s $2.25 trillion American Jobs Plan.

Now a group of Democratic and Republican moderates in the Senate are trying to step in and craft their own bipartisan deal, which would be in the ballpark of $880 billion, significantly less than what Biden says he wants.

And on Tuesday the House Problem Solvers Caucus proposed a $762 billion infrastructure spending plan.

But Jayapal says Congress needs to pass a far larger package than what the moderates are discussing.

“President Biden has laid out a big, bold vision, and it is urgent. The next step is clear: let’s do what the people are demanding. Let’s go big, bold and fast,” she said.

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In a red flag for progressives, Sen. Mitt RomneyWillard (Mitt) Mitt RomneyHillicon Valley: Biden gives TikTok and WeChat a reprieve | Colonial Pipeline CEO addresses Congress again | Thomson Reuters shareholders want review of ICE ties On The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax Romney presses Microsoft over missing Tiananmen Square images MORE (R-Utah) has told reporters that any bipartisan deal would not raise taxes and instead rely on increasing user fees and other strategies to raise revenue.

Sen. Jon TesterJonathan (Jon) TesterOn The Money: Bipartisan Senate group rules out tax hikes on infrastructure | New report reignites push for wealth tax House moderates unveil .25T infrastructure plan 35 percent say passing infrastructure bill should be top congressional priority: poll MORE (Mont.), a moderate Democrat in the talks, confirmed that this is the position of Romney, but suggested a deal could be found.

“I think there’s ways to do that. Hopefully it won’t be smoke and mirrors. Bottom line, this is probably the toughest part about this from my perspective, is how you get a pay-for,” he said, referring to finding a way to offset the cost of hundreds of billions of dollars in new infrastructure spending without raising taxes.

Many Democrats, including Senate Finance Committee Chairman Ron WydenRonald (Ron) Lee WydenOvernight Health Care: US to donate 500 million Pfizer doses to other countries: reports | GOP’s attacks on Fauci at center of pandemic message | Federal appeals court blocks Missouri abortion ban New report reignites push for wealth tax Left-leaning watchdog: Companies avoiding taxes spent millions on lobbying MORE (Ore.), however, say it’s imperative that corporations foot a big part of the cost of infrastructure investment by paying higher taxes.

Jayapal argues the more time spent on bipartisan negotiations means the longer Congress will go without passing a significant infrastructure investment bill.

“Every day that is wasted trying to get Republicans on board is another day that people can’t go back to work because they don’t have child care; another day without investing in millions of good, union jobs, another day that we lose further ground on the climate crisis,” she said. “Further delays jeopardize momentum and allow Republicans to block progress for the American people with no end in sight.”

 

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Facebook's Zuckerberg lets more employees work remotely

Facebook CEO Mark ZuckerbergMark Elliot ZuckerbergFacebook’s Zuckerberg lets more employees work remotely Hillicon Valley: Advocacy groups target Facebook employees in push to keep Trump off platform | Senior Biden cyber nominees sail through Senate hearing | State Dept. urges Nigeria to reverse Twitter ban Advocacy groups target Facebook employees in push to keep Trump off platform MORE is giving more of his employees the option of working from home, the San Francisco Chronicle reported on Sunday.  

Facebook said in a memo to employees obtained by the Chronicle that “anyone whose role can be done remotely can request remote work.” 

Zuckerberg said in a separate memo obtained by the Chronicle that he expects half of the company’s 60,000 employees to work remotely within the next decade. 

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“It’s clear that COVID has changed a lot about our lives, and that certainly includes the way that most of us work,” Zuckerberg wrote. “Coming out of this period, I expect that remote work is going to be a growing trend as well.”

Zuckerberg said he himself plans to work away from the office for half of 2022 and added that he’s able to spend more time with his family by working from home, allowing him be “more productive” and “happier.”

“I’ve found that working remotely has given me more space for long-term thinking and helped me spend more time with my family, which has made me happier and more productive at work.”

This comes as Facebook plans to reopen at full capacity in October. Employees who aren’t granted permission to work remotely will do half the time in the office, according to the Chronicle.  

Facebook, one of the world’s largest social media platforms, has opened new offices in the California cities of Burlingame and Sunnyvale in 2021. The company also leased an office in Manhattan.

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Five key parts of the Senate's sweeping China competitiveness bill

The Senate is poised to approve bipartisan legislation Tuesday afternoon that would invest billions to put the U.S. on more even footing with China on a range of emerging technology issues, including addressing the semiconductor shortage and funding critical research.

The bill still faces pushback from a number of Senate Republicans who argue it is not strong enough to confront China, though the level of opposition is unlikely to derail the package, which will need to pass the House before it can be sent to President BidenJoe BidenBiden DOJ adopts Trump’s liability stance in E. Jean Carroll defamation suit Boston mayor fires city’s police commissioner months after domestic abuse allegations emerge Book claims Trump believed Democrats would replace Biden with Hillary Clinton or Michelle Obama in 2020 election MORE’s desk. Voting in the Senate is slated to start around 4 p.m. on Thursday.

Here are five key components of the U.S. Innovation and Competition Act.

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Bill marks turning point in addressing semiconductor shortage

The legislation is poised to inject funding and attention into the struggling U.S. semiconductor industry in the midst of a major shortage that has brought certain sectors, including automobile manufacturing, to a standstill.

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The bill would invest around $52 billion into semiconductor production, marking a major step toward allowing the U.S. to compete in all facets of production on the global stage and help end a shortage that has forced General Motors and Ford to temporarily shutter plants.

Senate Majority Leader Charles SchumerChuck SchumerSchumer recommends two voting rights attorneys for judicial seats Trump: Manchin ‘doing the right thing’ by saying he will not end filibuster Manchin: Election overhaul bill ‘the wrong piece of legislation’ to unite country MORE (D-N.Y.), a lead sponsor of the legislation, has stressed the importance of funding chip manufacturing amid the shortage, saying last month that the bill would “make sure the United States stays on the cutting edge” of production.

The U.S. is a key player in the semiconductor industry, but federal funds for manufacturing have been lacking compared with other nations involved in chip production.

“The U.S. has more of the semiconductor market than anyone else, and we lead in design, which is how we make new chips. Where we don’t lead is fabrication, and that has moved to Taiwan,” Jim Lewis, the senior vice president and director of the Strategic Technologies Program at the Center for Strategic and International Studies, told The Hill on Monday.

“If we are serious about getting fabrication back in the United States…we have to use subsidies,” he said.

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The Semiconductor Industry Association (SIA) — which represents companies like Intel, IBM, Micron and Qualcomm — has pushed for passage of the legislation.

SIA President and CEO John Neuffer said in a statement to The Hill that “we simply need to be doing more chip research, design, and manufacturing on U.S. shores.”

“Other countries’ governments have made huge investments to attract chip manufacturing and research,” Neuffer said. “The semiconductor funding…would help level the global playing field and ensure more of the chips our country needs are made in America, which would benefit U.S. workers, businesses, and consumers alike.”


Invests billions to compete with China on critical research and development

Included in the massive 1,445 page text is Schumer and Sen. Todd YoungTodd Christopher YoungThis week: Democrats set to begin chaotic three-week sprint The case for improving America’s research and experimentation tax credit Senate votes to advance China bill after Schumer strikes deal MORE’s (R-Ind.) original bill, the Endless Frontier Act, which would provide about $81 billion to the National Science Foundation to serve as an adrenaline shot to help surpass China on research and development in technology and innovation.

“The one place that China has had an advantage over the U.S. is the Chinese are willing to spend money. We have been flat in our spending for more than a decade,” said Lewis.

“So if we are going to compete with them, we are going to have to match them,” he added.

The Senate bill also includes a provision to address the threat of Beijing’s theft of research and technology by saying intellectual property developed by the National Science Foundation is prohibited from being transferred to foreign entities of concern, like China.

In addition to massive funding, the bill would lay out clear priorities for the National Science Foundation on areas where the U.S. is in the most critical competition with China.

Mark Montgomery, senior director of the Center on Cyber and Technology Innovation with the Foundation for Defense of Democracies, called the funding levels “appropriate” and noted the necessity of this legislation.

“The absence of all of this would be detrimental to our ability to compete with the Chinese and create a level playing field for our companies to prosper,” he said.

One of the most significant components of the bill is the creation of a new division at the National Science Foundation, called the Directorate of Technology and Innovation, that would be focused on developing new technologies and providing investment in fostering domestic talent to carry out this research. It would receive $29 billion over five years.

“That is an exciting way in which we’ll see a longer life cycle of research that the federal government is investing in,” said Debbie Altenburg, senior research policy expert with the Association of Public and Land-grant Universities.

“It’s a large investment in scholarships and fellowships and at multiple levels — community colleges, undergraduate and graduate studies — we’re making sure to invest in domestic talent,” she added.

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Other focus areas in the bill include advancing knowledge of super-computing and robotics, and developing its hardware; innovation in advanced communications; advancing bio- and medical technology, genomics and synthetic biology; and biometrics, data storage and management. This portion of the bill would receive an estimated $26.2 billion over four years.


Takes a stance against escalating foreign cyberattacks

Key provisions in the bill reflect the need to defend the U.S. against foreign cyber threats following recent ransomware attacks like those against Colonial Pipeline and beef producer JBS USA.

The legislation incorporates the Cyber Response and Recovery Act, which would establish a fund to allow the Department of Homeland Security (DHS) to provide support to companies hit by cyberattacks.

It also includes $500 million over five years for the State Department to establish a program assisting other nations to increase secure internet access and cybersecurity.

The Senate is taking up the measure amid growing concerns on Capitol Hill around cyber threats following debilitating ransomware attacks on key groups, along with major cyber breaches such as the SolarWinds incident that compromised nine federal agencies.

“Why everyone is surprised that we are being whacked over the head routinely by China and Russia is a little bit baffling. We are going to have to do something different on cyber if we are going to get this under control,” Lewis said of the cyber provisions.

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5G gets a boost

A major concern during the course of the Trump administration was China’s potential leadership in the field of fifth generation, or 5G, wireless technologies.

In order to help the U.S. compete with China, the bill includes $1.5 billion for a Commerce Department fund that would spur the build out of neutral broadband technologies, which would put a damper on efforts by Chinese telecommunications companies Huawei and ZTE to build out 5G networks.

The Trump administration took a series of steps to penalize both companies, and the Biden administration has largely kept them in place, with politicians on both sides of the aisle citing national security concerns around the companies ties to China’s government. Both companies have strongly denied they pose any kind of national security threat to the U.S.

The legislation also includes a provision banning the Commerce secretary from removing Huawei from the “entity list,” which effectively blacklists the company, without certifying that it no longer poses a threat. Huawei was added to the list by the Trump administration, in addition to being designated a national security threat by the Federal Communications Commission.

Montgomery argued that while the bill’s provisions are necessary, more is needed to help the U.S. address concerns around 5G rollout.

“It can’t just be money. This is a good first start, this funding is important, but it’s got to be combined with a serious effort to make sure that international standards setting groups…allow for a fair and open marketplace for U.S. technology,” he said.

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Bipartisan package still faces strong GOP criticism

Republicans have made attacking the Biden administration’s approach to China a key election issue ahead of the 2022 midterms, aiming to frame the president’s policy toward Beijing as failing to protect American interests.

GOP opposition to the bill is unlikely to derail passage, but it still provides an opportunity for congressional Republicans to hit Democrats on confronting Beijing.

The Republican Study Committee, the largest GOP caucus in Congress with 154 members, is one of the loudest voices arguing that the bill falls short on addressing China’s theft of intellectual property.

Rep. Jim Banks (R-Ind.), head of the Republican Study Committee, attacked the legislation as a “boondoggle that’s going to help the Chinese,” in an interview with Breitbart over the weekend.

Sen. Marco RubioMarco Antonio RubioSenate passes bill to provide payments to ‘Havana syndrome’ victims Biden shifts from Obama on Cuba post-Florida losses Black women look to build upon gains in coming elections MORE (R-Fla.), during last month’s Senate vote to advance the bill, called Beijing’s theft of U.S. intellectual property a “horror show” in remarks on the Senate floor.

Alexa Henning, a spokesperson for Sen. Ron JohnsonRonald (Ron) Harold JohnsonThe Hill’s Morning Report – Presented by Citizens’ Climate Lobby – Biden floats infrastructure, tax concessions to GOP Ron Johnson ‘undecided’ on running for reelection Biden ‘allies’ painting him into a corner MORE (R-Wis.), a vocal opponent of the bill, criticized the legislation as wrongly distributing funds to the government over the private sector.

“China is obviously a growing threat, but I don’t believe any government allocates capital as efficiently as the private sector,” Henning told The Hill.

“This bill will increase government’s influence over the private sector while weakening America and making us less competitive by increasing our debt. Democrats love spending other people’s money and growing government. I have no idea why any Republican would want to help them do that.”

Alternately, Sen. Bernie SandersBernie SandersTrump: Manchin ‘doing the right thing’ by saying he will not end filibuster Schumer faces cracks in Democratic unity Progressives relish return to in-person events MORE (I-Vt.) last month criticized the bill as providing profitable private-chip manufacturing companies with far too much tax-payer dollars.

“As part of the Endless Frontiers bill we should not be handing out $53 billion in corporate welfare to some of the largest and most profitable corporations in the country with no strings attached,” he tweeted.

Lewis, of the Center for Strategic and International Studies, said despite GOP opposition to the bill, failing to pass the legislation would have serious repercussions.

“The Chinese would decide that we aren’t a serious competitor if the bill doesn’t go through,” he said. “They have a belief that the U.S. can’t get its act together.”