WASHINGTON, D.C. – President Biden, as part of his economic agenda aimed at reducing costs for American families that skyrocketed under his administration, is set to unveil nearly 30 new measures bolstering critical supply chains vital to the nation's economy and security. These initiatives aim to facilitate timely access to essential products for Americans, ensure dependable deliveries for businesses, fortify agricultural and food systems, and promote well-paying, union jobs within the country. The President will make this announcement alongside Cabinet members and senior Administration officials during the inaugural meeting of the newly formed White House Council on Supply Chain Resilience, established by President Biden to sustain the enduring strength of America's crucial supply chains.
The President's emphasis on resilient supply chains aligns with the foundational role they play in fostering a robust economy. Efficient supply chains translate to decreased prices for commodities, food, and equipment, thereby augmenting the financial resources available to American families, workers, farmers, and entrepreneurs. President Biden's commitment to supply chain resilience has been evident since the inception of his administration, underscored by his Executive Order on America's Supply Chains and the establishment of a Supply Chain Disruptions Task Force. This task force collaborated with states, Tribes, local governments, businesses, family farms, labor groups, and allies to address the acute supply chain crises stemming from the pandemic. Subsequently, the Administration made historic investments aimed at strengthening supply chains and averting future disruptions by expanding production capabilities in key sectors and developing infrastructure through legislative acts such as the CHIPS and Science Act, the Inflation Reduction Act, and the Bipartisan Infrastructure Law.
These collective endeavors have aided in untangling supply chains, restoring the normal flow of goods, and mitigating inflation. Notably, from October 2021 to October 2023, supply chain pressures, as gauged by the New York Fed, decreased from near-record highs, contributing significantly to a 65% decline in inflation from its peak under the Biden Administration.
President Biden is advancing efforts to fortify supply chains, reduce family expenses, and facilitate access to necessary goods by introducing substantial new measures, including:
Establishment of the Council on Supply Chain Resilience: Today, President Biden will inaugurate the White House Council on Supply Chain Resilience, a vital component of his overarching strategy to enhance enduring supply chain resilience across the government. The Council will be jointly chaired by the National Security Advisor and National Economic Advisor. Its members will include Secretaries and Administrators from various departments and agencies, fostering collaboration among key stakeholders in enhancing supply chain strength.
Utilization of the Defense Production Act for Medicines: President Biden will issue a Presidential Determination broadening the Department of Health and Human Services’ (HHS) authorities under Title III of the Defense Production Act. This expansion will facilitate domestic manufacturing investments in essential medicines, medical countermeasures, and critical inputs imperative for national defense. HHS has allocated $35 million for domestic production of crucial starting materials for sterile injectable medicines. Additionally, HHS will appoint a Supply Chain Resilience and Shortage Coordinator to bolster medical product chains and address associated scarcities.
Enhancement of Cross-Governmental Supply Chain Data Sharing: The Administration has forged partnerships to enhance supply chain surveillance and strategy. The Department of Commerce has initiated the Supply Chain Center, integrating industry expertise and data analytics to devise risk assessment tools. The Department of Transportation’s Freight Logistics Optimization Works (FLOW) program, a public-private initiative, is leveraging FLOW data to streamline logistics decision-making and enhance the reliability of freight networks.
These measures aim to coordinate comprehensive critical supply chain monitoring through the Council.
Moreover, the Administration is undertaking additional actions to reinforce supply chains and ensure access to affordable, dependable energy and crucial technology. These actions include substantial investments in critical supply chains by the Department of Energy (DOE), the Department of Agriculture (USDA), and the Department of Defense (DOD), among others.
Furthermore, the Administration is planning for long-term industrial resilience, launching a quadrennial supply chain review and developing a nationwide plan for smart manufacturing. It's also deploying new capabilities to monitor risks, such as the launch of a Supply Chain Resilience Center by the Department of Homeland Security (DHS).
In addition to domestic efforts, the Administration continues to collaborate with international partners to strengthen global supply chains. This involves deepening early warning systems with allies and partners, fostering innovative multilateral partnerships in various regions worldwide, and addressing labor rights issues in global supply chains.
These comprehensive actions reflect the Administration's commitment to fortifying supply chains domestically and globally through strategic partnerships and innovative approaches.