What This Bill Does
This bill creates a new Office of Manufacturing Security and Resilience inside the Department of Commerce. The office will provide loans and loan guarantees to help companies manufacture critical goods in the United States instead of relying on foreign countries that pose security risks.
##
Who It Affects
- Manufacturers and businesses that make critical goods (materials, equipment, or products essential to national security)
- State and local governments
- Tribal governments
- Colleges and universities
- Nonprofit organizations
- Manufacturing investment companies
- Federal agencies involved in supply chains
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Key Provisions
- The Under Secretary of the new office must develop a government-wide strategy within 180 days to make supply chains stronger and less dependent on countries that pose security threats. (Sec. 3(a))
- The office can provide loans covering up to 80 percent of project costs to help companies move manufacturing from risky countries to the United States or trusted allies. (Sec. 4(i)(1))
- Eligible activities include building new manufacturing facilities, buying equipment, developing new technology, and moving production operations out of countries of concern. (Sec. 4(e))
- The office must prioritize awarding loans to projects that create jobs in the United States and produce critical goods the federal government needs during emergencies. (Sec. 4(m)(2))
- Congress authorizes $35 billion for fiscal years 2024 through 2028 for loans and loan guarantees, with up to 2 percent per year for administrative costs. (Sec. 4(t))
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What Changes
A new federal office will begin reviewing loan applications from manufacturers and businesses wanting to build or expand production of critical goods. Companies can now access federal loans to relocate manufacturing from countries considered security threats (such as those with concentrated control of supply chains or governments credibly alleged to commit crimes against humanity) to the United States or allied nations. The federal government will also create a strategy to coordinate across agencies on strengthening supply chains and reducing vulnerability to disruptions.
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Important Definitions
**Critical good:** Any raw material, manufactured item, or product whose absence would significantly harm U.S. national security, economic security, or critical infrastructure.
**Critical industry:** An industry critical to U.S. national or economic security, including focus areas like semiconductors, artificial intelligence, advanced energy technology, and biotechnology.
**Country of concern:** A country where a concentrated supply chain exists, that poses significant security threats, and whose government has proven or been credibly alleged to have committed crimes against humanity or genocide.
**Supply chain shock:** Events disrupting supply chains including natural disasters, pandemics, cyberattacks, conflicts, or economic disruptions.
**Concentrated supply chain:** A supply chain where one foreign country produces 30 percent or more of a critical good, or where the U.S. imports more than 50 percent of its supply from abroad.
**Domestic manufacturer:** A business conducting research, engineering, or manufacturing activities in the United States.
**Manufacturing technology:** Technologies necessary to manufacture critical goods.
**Ally or key international partner:** NATO member countries, U.S.-designated major non-NATO allies, or certain Western Hemisphere countries (specified list included) that are not countries of concern.
##
I
118TH CONGRESS
1ST SESSION
H. R. 774
To establish an Office of Manufacturing Security and Resilience in the
Department of Commerce, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 2023
Mrs. DINGELL (for herself, Ms. BLUNT ROCHESTER, Ms. KELLY of Illinois,
and Ms. WILD) introduced the following bill; which was referred to the
Committee on Energy and Commerce
A BILL
To establish an Office of Manufacturing Security and Resil-
ience in the Department of Commerce, and for other
purposes.
Be it enacted by the Senate and House of Representa-
1
tives of the United States of America in Congress assembled,
2
SECTION 1. SHORT TITLE.
3
This Act may be cited as the ‘‘Manufacturing Econ-
4
omy And National Security Act’’ or the ‘‘MEANS Act’’.
5
SEC. 2. FINDINGS.
6
Congress finds the following:
7
(1) Resilient supply chains are paramount to
8
our national security and economic security.
9
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•HR 774 IH
(2) A coordinated and whole-of-Government ap-
1
proach to safeguarding supply chains will benefit all
2
Americans and ensure disruptions are avoided or
3
mitigated.
4
(3) Establishing an Office of Manufacturing Se-
5
curity and Resilience in the Department of Com-
6
merce will serve as the cornerstone of the Federal
7
Government’s supply chain mission.
8
SEC. 3. UNITED STATES STRATEGY TO COUNTER THREATS
9
TO SUPPLY CHAINS FOR CRITICAL GOODS.
10
(a) IN GENERAL.—In accordance with Executive
11
Order 14017 (86 Fed. Reg. 11849; relating to America’s
12
supply chains), the Under Secretary shall, not later than
13
180 days after enactment of this Act, develop and imple-
14
ment a strategy taking a whole-of-Government approach
15
to support the resilience, diversity, security, and strength
16
of supply chains.
17
(b) ELEMENTS.—The strategy required under sub-
18
section (a) shall include the following elements:
19
(1) A plan to execute a unified national effort
20
to reduce reliance on concentrated supply chains for
21
critical goods and protect against threats from coun-
22
tries of concern relating to supply chains for critical
23
goods.
24
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(2) A plan to provide sufficient access to critical
1
goods by ensuring that supply chains are not vulner-
2
able to disruption, strain, compromise, or elimi-
3
nation, including by being concentrated in a country
4
of concern.
5
(3) A plan to collaborate with other relevant
6
Federal Government agencies to assist allies or key
7
international partners to build capacity for manufac-
8
turing critical goods.
9
(4) A plan to incentivize, through loans and
10
loan guarantees, and equity investment, and identify
11
tax incentives, trade preferences, or other means, as
12
appropriate—
13
(A) for domestic manufacturers that man-
14
ufacture critical goods to—
15
(i) relocate manufacturing facilities,
16
industrial equipment, or operations related
17
to the production of critical goods from
18
countries of concern to the United States
19
or to other allies or key international part-
20
ners; and
21
(ii) to support manufacturing facili-
22
ties, industrial equipment, or operations to
23
increase the production of critical goods
24
and meet demand for such articles; and
25
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(B) for domestic manufacturers that do
1
not manufacture critical goods to make nec-
2
essary or appropriate modifications to existing
3
manufacturing facilities, industrial equipment,
4
manufacturing technology, or operations in
5
order to manufacture 1 or more critical good.
6
(5) A plan describing the manner and processes
7
through which the Under Secretary will implement
8
the program under section 4, including through con-
9
sultation with, or requests for information from, the
10
heads of any relevant Federal agencies, including
11
those with jurisdiction over supply chains, for the
12
purposes of ensuring—
13
(A) the awards serve the greatest needs for
14
the most diverse array of critical industries; and
15
(B) the awards, on the whole, serve the
16
greatest national security and economic security
17
needs.
18
(6) A plan to protect against supply chain
19
shocks from countries of concern relating to supply
20
chains.
21
(7) A plan to strengthen and increase trade and
22
other forms of engagement between the United
23
States and allies or key international partners in
24
order to mitigate—
25
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(A) supply chain vulnerabilities; and
1
(B) the effects of supply chain shocks.
2
(8) Identify, in coordination with other relevant
3
Federal agencies, actions relating to supply chains
4
with which the United States might—
5
(A) raise living standards;
6
(B) increase employment opportunities;
7
and
8
(C) address the underlying causes of irreg-
9
ular migration.
10
(9) Recommendations to effectuate the strategy
11
under this section.
12
(c) SUBMISSION OF STRATEGY.—
13
(1) IN
GENERAL.—Not later than 270 days
14
after the date of the enactment of this Act, the
15
President shall submit to the Committee on Energy
16
and Commerce of the House of Representatives and
17
the Committee on Commerce, Science, and Trans-
18
portation of the Senate, and publish on the website
19
of the Office of the Under Secretary, a report con-
20
taining the strategy developed under this section.
21
(2) UPDATE.—Not less than once every 4 years
22
after the date on which the strategy is submitted
23
under paragraph (1), the Under Secretary shall sub-
24
mit to Congress an update to such strategy.
25
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(3) FORM.—The report submitted under para-
1
graph (1), and any update submitted under para-
2
graph (2), shall be submitted in unclassified form
3
and may include a classified annex.
4
SEC. 4. CRITICAL SUPPLY CHAIN RESILIENCE PROGRAM.
5
(a) ESTABLISHMENT.—There is established in the
6
Office of the Secretary of Commerce an Office of Manu-
7
facturing Security and Resilience to carry out the Manu-
8
facturing Security and Resilience Program described in
9
subsection (d).
10
(b) MISSION.—The mission of the Office shall be the
11
following:
12
(1) Help to promote the leadership of the
13
United States with respect to critical industries and
14
supply chains that—
15
(A) strengthen the national security of the
16
United States; and
17
(B) have a significant effect on the eco-
18
nomic security of the United States.
19
(2) Support the availability of critical goods by
20
supporting domestic manufacturers, domestic enter-
21
prises, and manufacturing operations in countries
22
that are allies or key international partners of the
23
United States.
24
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•HR 774 IH
(3) Assist the Federal Government in preparing
1
for, and responding to, covered emergencies and
2
supply chain shocks, including by improving the
3
flexible manufacturing capacities and capabilities in
4
the United States in the case of a supply chain
5
shock.
6
(4) Reduce the reliance of domestic entities and
7
domestic manufacturers on critical goods with con-
8
centrated supply chains from countries of concern.
9
(5) Encourage partnerships and collaboration
10
with the Federal Government and the private sector,
11
labor organizations, the governments of countries
12
that are allies or key international partners of the
13
United States, State governments and other political
14
subdivisions of a State, and Tribal governments in
15
order to—
16
(A) promote the resilience of supply
17
chains; and
18
(B) respond to supply chain shocks to—
19
(i) critical industries; and
20
(ii) supply chains.
21
(6) In order to safeguard against supply chain
22
disruptions, encourage the relocation of facilities
23
that manufacture critical goods from countries of
24
concern to allies or key international partners.
25
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(7) Support the development, maintenance, im-
1
provement, competitiveness, restoration, and expan-
2
sion of the productive capacities, efficiency, and
3
workforce of critical industries and domestic manu-
4
facturers of critical goods, industrial equipment, and
5
manufacturing technology.
6
(8) Prepare for and take appropriate steps to
7
minimize the effects of supply chain shocks on crit-
8
ical industries and supply chains.
9
(9) Support the creation of jobs with competi-
10
tive wages in the manufacturing sector.
11
(10) Encourage manufacturing growth and op-
12
portunities in economically distressed areas and
13
communities of color.
14
(11) Promoting the health of the economy of
15
the United States and the competitiveness of manu-
16
facturing in the United States.
17
(12) Coordinate executive branch actions nec-
18
essary to carry out the functions described in para-
19
graphs (1) through (11).
20
(c) UNDER SECRETARY OF THE OFFICE.—
21
(1) APPOINTMENT
AND
TERM.—The head of
22
the Office shall be the Under Secretary of the Office
23
of Supply Chain Resiliency and Crisis Response, ap-
24
pointed by the President, by and with the advice and
25
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•HR 774 IH
consent of the Senate, for a term of not more than
1
5 years.
2
(2) PAY.—The Under Secretary shall be com-
3
pensated at the rate in effect for level II of the Ex-
4
ecutive Schedule under section 5313 of title 5,
5
United States Code.
6
(3)
ADMINISTRATIVE
AUTHORITIES.—The
7
Under Secretary may appoint officers and employees
8
in accordance with chapter 51 and subchapter III of
9
chapter 53 of title 5, United States Code.
10
(d) MANUFACTURING SECURITY
AND RESILIENCE
11
PROGRAM.—
12
(1) IN GENERAL.—The Under Secretary shall
13
support the resilience, diversity, security, and
14
strength of supply chains by providing loans and
15
loan guarantees for eligible activities described under
16
subsection (e) to eligible entities described under
17
subsection (f).
18
(2) APPLICATION.—To be eligible for a loan or
19
loan guarantee under this section, an eligible entity
20
described in subsection (e) shall submit to the Under
21
Secretary an application at such time, in such form,
22
and containing such information as the Under Sec-
23
retary may require, including—
24
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•HR 774 IH
(A) a description of the proposed activity
1
to be carried out with such a loan or loan guar-
2
antee;
3
(B) a description of the supply chain sup-
4
ported by the proposed activity; and
5
(C) an estimate of the total costs for such
6
activity.
7
(e) ELIGIBLE ACTIVITIES.—The following activities
8
may be carried out with amounts made available under
9
this section:
10
(1) The development, diversification, preserva-
11
tion, improvement, support, restoration, or expan-
12
sion of supply chains and the domestic or proximal
13
manufacturing of critical goods, industrial equip-
14
ment, and manufacturing technology, including ac-
15
tivities that support any of the following:
16
(A) The domestic manufacturing of a crit-
17
ical good or industrial equipment.
18
(B) The commercialization, adoption, de-
19
ployment, or use of manufacturing technology
20
by domestic manufacturers.
21
(C) The design, engineering, construction,
22
expansion, improvement, repair, or maintenance
23
of critical infrastructure or a manufacturing fa-
24
cility in the United States.
25
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•HR 774 IH
(D) The purchase, lease, enhancement, or
1
retooling of industrial equipment for use in the
2
United States.
3
(E) The purchase, lease, or acquisition of
4
critical goods, industrial equipment, or manu-
5
facturing technology from reliable sources.
6
(F) The relocation of manufacturing facili-
7
ties, or operations related to the production of
8
critical goods out of a country of concern and
9
into the United States or to an ally or key
10
international partner of the United States, with
11
a priority for those eligible countries listed in
12
subsection (w)(1)(B).
13
(G) The modification of manufacturing fa-
14
cilities, industrial equipment, or operations re-
15
lated to the manufacture of critical goods to—
16
(i) create new capabilities for an eligi-
17
ble entity to manufacture critical goods;
18
(ii) expand existing operations to in-
19
crease the manufacture of critical goods; or
20
(iii) accommodate any manufacturing
21
operations related to critical goods that are
22
being relocated to the United States or to
23
an ally or key international partner.
24
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(H) The development of tools or processes
1
that relate to procuring, transporting, or stor-
2
ing critical goods.
3
(2) The manufacture or acquisition of a sub-
4
stitute for a critical good, industrial equipment, or
5
manufacturing technology.
6
(3) The establishment, improvement, develop-
7
ment, expansion, or preservation of surge capacity or
8
stockpiling of a critical good or industrial equip-
9
ment, as appropriate and necessary.
10
(4) The establishment, improvement, or preser-
11
vation of diverse, secure, reliable, and strong sources
12
and locations of a critical good in the United States.
13
(f) ELIGIBLE ENTITIES.—The following entities are
14
eligible to receive loans and loan guarantees under this
15
section:
16
(1) A domestic manufacturer.
17
(2) A domestic enterprise.
18
(3) A State, county, city, or other political sub-
19
division of a State.
20
(4) A Tribal government.
21
(5) A manufacturing extension center estab-
22
lished as part of the Hollings Manufacturing Exten-
23
sion Partnership.
24
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