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President Joe Bidens economic agenda is achieving one of his principal goals: channeling more private investment into small communities that have been losing ground for years.

Thats the conclusion of a new study released today, which found that economically strained counties are receiving an elevated share of the private investment in new manufacturing plants tied to three major bills that Biden passed early in his presidency. After decades of economic divergence, strategic sector investment patterns are including more places that have historically been left out of economic growth, concludes the new report from Brookings Metro and the Center for Energy and Environmental Policy Research at MIT.

The large manufacturing investments in economically stressed counties announced under Biden include steel plants in Mason County, West Virginia, and Mississippi County, Arkansas; an expansion of a semiconductor-manufacturing plant in Schuylkill County, Pennsylvania; a plant to process the lithium used in electric vehicle (EV) batteries in Chester County, South Carolina; an electric-vehicle manufacturing plant in Haywood County, Tennessee; and plants to manufacture batteries for EVs in Montgomery County, Tennessee; Vigo County, Indiana; and Fayette County, Ohio.

These are all some of the 1,071 countiesabout a third of the U.S. totalthat Brookings defines as economically distressed, based on high levels of unemployment and a relatively low median income. As of 2022, the report notes, these counties held 13 percent of the U.S. population but generated only 8 percent of the nations economic output.

Since 2021, though, these distressed counties have received about $82 billion in private-sector investment from the industries targeted by the three major economic-development bills Biden signed. Those included the bipartisan infrastructure law and bills promoting more domestic manufacturing of semiconductors and clean energy, such as electric vehicles and equipment to generate solar and wind power.

That $82 billion has been spread over 100 projects across 70 of the distressed counties, Brookings and MIT found. In all, since 2021 the distressed counties have received 16 percent of the total investments into the industrial sectors targeted by the Biden agenda. Thats double their share of national GDP. Its also double the share of all private-sector investment they received from 2010 to 2020. Funneling more investment and jobs to these economically lagging communities is really just at the core of what [Biden] is trying to accomplish, Lael Brainard, the director of Bidens National Economic Council, told me. The president talks a lot about communities that have been left behind, and now he is talking a lot about communities that are coming back.

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This surge of investment into smaller places is a huge change from previous patterns that have concentrated investment and employment in a handful of superstar metropolitan areas, Mark Muro, a senior fellow at Brookings Metro and one of the reports authors, told me.

As the rich places have been getting richer, the social-media/tech economy was something that was happening somewhere else for most people, Muro said. Clearly, this is a different-looking recovery that is occurring in different places and has a tilt to distressed communities right now.

One of those places is Fayette County, in south-central Ohio, about equidistant from Dayton, Cincinnati, and Columbus. Fayettes population of roughly 28,000 is predominantly white and rural with few college graduates. Its median income is about one-fourth lower than the national average, and its poverty rate is about one-fourth higher.

Early in 2023, Honda and its partner LG Energy Solution broke ground on a massive new plant in Fayette to build batteries for Honda and Acura EVs. The Honda project has already generated large numbers of construction jobs, as has a massive Intel semiconductor-fabrication plant under construction about an hour away, outside Columbus, in Licking County. The trade associations for electrical workers, plumbers, whatever it might be, they are going to have jobs in the state of Ohio for years, Jeff Hoagland, the CEO of the Dayton Development Coalition, told me. These are huge facilities. The Honda facility is the size of 78 football fields.

Honda is already advertising to fill some engineering jobs, and once the plant is operational in late 2024 or early 2025, it expects to hire some 2,200 people. Most of those jobs will not require college degrees, Hoagland said. Many more jobs, he added, will flow from the plants suppliers moving to establish facilities in the area. There are companies already buying up land, Hoagland told me.

Hoagland said he has no doubt that the federal tax incentives in the big Biden bills for domestic production of clean energy and semiconductors were central to these decisions. The federal incentives have been 100 percent critical, and I know that firsthand from Intel and from Honda, Hoagland said. Those companies needed those [incentives] to get into the full implementation of their strategy to rebuild that manufacturing, that supply-chain base, in the United States. Now we are seeing all these companies come back to the heartland in Ohio to do manufacturing. Yet another firm, Joby Aviation, announced in September that, with support from federal clean-energy loan guarantees, it plans to construct a factory near Dayton to build electric air taxis.

Encouraging manufacturers to locate their facilities in the U.S. rather than abroad has been the central goal of the tax incentives, loan guarantees, and grants in the clean-energy, semiconductor, and infrastructure bills. But the Biden administration has also been using provisions in those bills, as well as other programs, to try to steer more of those domestic investments specifically into distressed communities.

As the Brookings/MIT report notes, the Inflation Reduction Acts clean-energy tax credits provide extra bonuses of 10 percent or more to companies that invest in low-income communities. An Energy Department loan-guarantee program favors companies that locate clean-energy investments in communities that lost jobs when fossil-fuel facilities shut down. In a speech last month, Brainard highlighted a $1 billion Transportation Department program that funds infrastructure improvements to reconnect neighborhoods that have been isolated from job opportunities by highways or other transportation infrastructure. (Many of those places are heavily minority communities.)

Similarly, under the semiconductor bill, the administration is awarding substantial funds for regional innovation engines through the National Science Foundation, as well as tech hubs that require communities to organize businesses, schools, and government to develop coordinated plans for regional growth in high-tech industries. The winners of these grants include projects that are based in places far beyond the existing large metro centers of technological innovation, such as Louisiana, Wyoming, North Dakota, South Carolina, and Oklahoma. Those [programs] are spreading innovation investment to clusters all around the country rather than being concentrated just in a few huge metros, Brainard told me.

Joseph Parilla, the director of applied research at Brookings Metro, told me that the large manufacturing facilities being built in response to the new federal incentives naturally would flow toward the periphery of major metropolitan areas where many of these distressed counties are located. But Parilla believes the tax incentives and other programs that the Biden administration is implementing are also having a pretty significant impact in driving so many of these investments to smaller, economically strained places.

Biden has made clear that he considers steering more investments to the places lagging economically both a political and policy priority. Even in forums as prominent as the State of the Union address, he often talks about the importance of creating jobs that willallow young people to stay in the communities where they were born. Biden has also, as Ive written, rejected the belief of his two Democratic predecessors, Bill Clinton and Barack Obama, that the most important step for expanding economic opportunity is to help more people obtain postsecondary education; instead, Biden conspicuously emphasizes how many jobs that do not require four-year college degrees are being created in the projects subsidized by his big-three bills. What youll see in this field of dreams are Ph.D. engineers and scientists alongside community-college graduates, he declared at the 2022 Ohio Intel plant ground-breaking.

But its not clear that the economic benefits flowing into distressed communities will produce political gains for Biden. In 2020, despite his small-town, blue-collar Scranton Joe persona, Biden heavily depended on the big, well-educated metro areas thriving in the Information Age: Previous Brookings Metro research found that, although Biden won only about one-sixth of all U.S. counties, his counties generated nearly three-fourths of the nations total economic output.

The outcome was very different in the economically distressed counties. Brookings found that in 2020, Trump won 54 of the 70 distressed counties where the new investments have been announced under Biden. Some Democratic operatives are dubious that these new jobs and opportunities will change that pattern much.

Read: Bidens economic formula to win in 2024

Partly thats because Democrats face so many headwinds in these places on issues relating to race and culture, such as immigration and LGBTQ rights. But its also because of the risk that without unions or many local Democratic officials to drive the message, workers simply wont be aware that their new jobs are linked to programs that Biden created, as Michael Podhorzer, the former AFL-CIO political director, has argued to me.

Jim Kessler, the executive vice president of Third Way, a centrist Democratic group that has studied the partys problems in small-town and rural areas, agrees that even big job gains wont flip small red places toward Biden. But even slightly reducing the GOP margin in those places could matter, he told me. Some of these swing states have vast red areas, and he needs to do well enough in those areas, Kessler said. Pointing to new jobs in previously declining places, Kessler said, could also provide Biden a symbol of economic recovery that resonates with voters far beyond those places.

The Brookings and MIT authors expect that Biden will have many more such examples to cite as further investments in industries including clean energy and semiconductors roll out. The map is not yet finished, the report concludes. There are hundreds of distressed counties with assets similar to those that have attracted investment and have not yet been targeted. One of the most tangible legacies of Bidens presidency may be a steady procession of new plants rising through the coming years in communities previously left for scrap. Whether voters in these places give him credit for that will help determine if hes still in the White House to see it.

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Rachel Reeves acknowledges damage of ‘too many’ budget leaks

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Rachel Reeves acknowledges damage of 'too many' budget leaks

The Chancellor Rachel Reeves has acknowledged there were “too many leaks” in the run-up to last month’s budget.

The flow of budget content to news organisations was “very damaging”, Ms Reeves told MPs on the Treasury select committee on Wednesday.

“Leaks are unacceptable. The budget had too much speculation. There were too many leaks, and much of those leaks and speculation were inaccurate, very damaging”, she said.

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The cost of UK government borrowing briefly spiked after news reports that income taxes would not rise as first expected and Labour would not break its manifesto pledge.

An inquiry into the leaks from the Treasury to members of the media is to take place. But James Bowler, the Treasury’s top official, who was also giving evidence to MPs, would not say the results of it would be published.

Committee chair Dame Meg Hillier asked if the group of MPs could see the full inquiry.

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“I’d have to engage with the people in the inquiry about the views on that”, replied Mr Bowler, permanent secretary to the Treasury.

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OBR leak ‘a mistake of such gravity’

The entire contents of the budget ended up being released 40 minutes early via independent forecasters, the Office for Budget Responsibility (OBR).

A report into this error found the OBR had uploaded documents containing their calculations of budget numbers to a link on the watchdog’s website it had mistakenly believed was inaccessible to the public.

Tax rises ruled out

The chancellor ruled out future revenue-raising measures, including applying capital gains tax to primary residences and changing the state pension triple.

Committee member and former chair Dame Harriet Baldwin had noted that the chancellor’s previous statement to the MPs when she said she would not overhaul council tax and look at road pricing, turned out to be inaccurate.

During the budget, an electric vehicle charge per mile was introduced, as was an additional council tax for those with properties worth £2m or more.

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Egypt and Iran complain to FIFA after World Cup match scheduled to coincide with Seattle Pride event

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Egypt and Iran complain to FIFA after World Cup match scheduled to coincide with Seattle Pride event

Iran and Egypt have complained after FIFA scheduled a World Cup match between the two nations in Seattle to coincide with the city’s LGBTQ+ Pride festival.

Seattle’s PrideFest 2026, which organisers say regularly sees more than 200,000 participants, takes place on 27 and 28 June – immediately following the match.

Local organisers have said the 26 June game at the Seattle Stadium will include a “once-in-a-lifetime moment to showcase and celebrate LGBTQIA+ communities in Washington”.

Iran players pose for a team group photo before a match against North Korea in June 2025. Pic: Reuters
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Iran players pose for a team group photo before a match against North Korea in June 2025. Pic: Reuters

In Iran, where gay couples can face the death penalty, the president of Iran’s Football Federation, Mehdi Taj, condemned the decision to use Seattle as a venue and the timing of the match.

Mr Taj told Iranian state TV: “Both Egypt and we have objected, because this is an unreasonable and illogical move that essentially signals support for a particular group, and we must definitely address this point.”

He said Iran would bring up the issue at a FIFA Council meeting in Qatar next week.

The Egypt players line up during the national anthems before the match against Jordan. Pic: Reuters
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The Egypt players line up during the national anthems before the match against Jordan. Pic: Reuters

The football federation in Egypt, where Human Rights Watch says people from LGBTQ+ communities face persecution, said in a statement that it had written to FIFA “categorically rejecting any activities related to supporting homosexuality during the match between the Egyptian national team and Iran.”

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The letter also stated: “Information had circulated indicating the local organising committee’s decision and plans to hold some activities related to supporting homosexuality during that match” and the federation “completely rejects such activities, which directly contradict the cultural, religious and social values in the region, especially in Arab and Islamic societies”.

The Seattle Pride festival takes place in late June, attracting hundreds of thousands of people every year, like in 2023. File pic: AP
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The Seattle Pride festival takes place in late June, attracting hundreds of thousands of people every year, like in 2023. File pic: AP

In Seattle, the local organising committee said it was “moving forward as planned with our community programming outside the stadium during Pride weekend and throughout the tournament,” having already promoted an art contest ahead of the match.

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It added: “We get to show the world that in Seattle, everyone is welcome.”

Seattle PrideFest has been organised in the city since 2007 by a nonprofit group which designated the 26 June match for celebration before FIFA carried out the World Cup draw on Friday.

On Saturday, FIFA announced the Egypt-Iran game had been allocated to Seattle instead of Vancouver, where the teams’ group rivals Belgium and New Zealand will play at the same time.

FIFA has been asked for a comment.

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Iceland to boycott Eurovision over Israel’s participation

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Iceland to boycott Eurovision over Israel's participation

Iceland has announced it is boycotting next year’s Eurovision over Israel’s participation in the competition, saying taking part would “neither be a source of joy nor peace”.

The announcement from Iceland‘s RUV follows withdrawals by broadcasters from the Netherlands, Spain, Ireland and Slovenia.

In a statement, RUV said participation of Israeli national broadcaster KAN had “created disunity” among members of the European Broadcasting Union (EBU), which organises Eurovision, and the general public.

Israel‘s place in the contest was confirmed at the EBU’s general assembly last week.

Yuval Raphael represented Israel at this year's competition in Switzerland. Pic: Reuters/ Denis Balibouse
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Yuval Raphael represented Israel at this year’s competition in Switzerland. Pic: Reuters/ Denis Balibouse

The past two events have attracted protests and fan boycotts over Israel’s inclusion amid the country’s military action in Gaza. This year, there were also allegations that voting had been manipulated in favour of their contestant.

After growing criticism, members were asked to vote in a secret ballot last week, on whether they were happy with tougher new rules introduced in November, or whether they wanted a second vote on participation for 2026.

The majority agreed the changes were enough, although Sky News understands 11 countries were against accepting these without a further vote.

Dutch broadcaster AVROTROS, Spain’s RTVE, Ireland’s RTE and Slovenia’s RTV immediately issued statements announcing their withdrawal.

Becoming the fifth broadcaster to pull out, RUV made the announcement following a board meeting. It said that while the new rules address many of the concerns it has raised, it believes there are “still doubts” about whether the changes are enough.

Spain, represented by Melody earlier this year, is among the countries boycotting the event. Pic: REUTERS/Denis Balibouse
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Spain, represented by Melody earlier this year, is among the countries boycotting the event. Pic: REUTERS/Denis Balibouse

“RUV has repeadly raised concerns that various Icelandic stakeholders, such as artist associations and the general public, were opposed to participation in the contest,” the statement said. “Furthermore, RUV had requested the EBU to exclude KAN from the contest in accordance to precedents.

“It is a complex matter which has already damaged the contest’s reputation and EBU, emphasising the necessity of a solution for all concerned parties.”

Austria, which will host next year’s show, last week said it was pleased to see Israel allowed to participate. Roland Weissmann, director-general for Austrian broadcaster ORF, said the contest was a “competition for broadcasters, not governments”.

Remember Monday represented the UK in 2025. The BBC has said it supports the EBU vote decision. Pic: MANDOGA MEDIA/picture-alliance/dpa/AP
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Remember Monday represented the UK in 2025. The BBC has said it supports the EBU vote decision. Pic: MANDOGA MEDIA/picture-alliance/dpa/AP

The BBC, which broadcasts Eurovision in the UK, also said it supported the decision.

Earlier on Wednesday, Poland’s TVP confirmed its participation.

In a statement, the broadcaster said it was aware of the scale of the tension surrounding the competition and understood the emotions and concerns raised.

“However, we believe that Eurovision still has a chance to once again become a space filled with music. And only music,” a TVP statetment said.

Despite some pressure from the cultural union in Belgium for a boycott, broadcaster RTBF also confirmed its participation last week.

But the walk-outs cast a shadow over what is meant to be a celebration of the unifying power of music.

Countries have pulled out or been banned in previous years – most notably Russia in 2022, just days after the invasion of Ukraine – but this is perhap’s Eurovision’s biggest political crisis.

Noa Kirel, who represented Israel in 2023, told Sky News in an interview in October that while the situation now is “very different” to when she took part in May of that year, she believes it should not be about politics and must “focus on the music”.

Wednesday marked the final day for national broadcasters to announce whether they plan to participate next year.

The EBU says a final list of competing nations will be published before Christmas.

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