WASHINGTON –Today, U.S. Sens. Mark R. Warner (D-VA) and Josh Hawley (R-MO) announced they will introduce the AI-Related Job Impacts Clarity Act. This legislation would require major companies and federal agencies to report AI related layoffs to the Department of Labor to be compiled into a publicly available report.  

“Good policy starts with good data. This bipartisan legislation will finally give us a clear picture of AI’s impact on the workforce – what jobs are being eliminated, which workers are being retrained, and where new opportunities are emerging. Armed with this information, we can make sure AI drives opportunity instead of leaving workers behind, ” said Sen. Warner. 

“Artificial intelligence is already replacing American workers, and experts project AI could drive unemployment up to 10-20% in the next five years,” said Sen. Hawley. “The American people need to have an accurate understanding of how AI is affecting our workforce, so we can ensure that AI works for the people, not the other way around.”

The AI-Related Job Impacts Clarity Act would:

1. Require major companies and federal agencies to quarterly report AI-related job effects –including layoffs and job displacement – to the Department of Labor (DOL). 
2. Require the DOL to compile data on AI-related job effects and publish a report to Congress and the public.

Read the full bill text here. 

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WASHINGTON –  Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) announced $10,500,000 in federal funding for the Virginia Department of Education to promote digital equity across Virginia. This funding was made possible by the Bipartisan Infrastructure Law, which both senators helped pass. It was awarded through the National Telecommunications and Information Administration’s (NTIA) Digital Equity Competitive Grant Program.

“We are proud to have helped pass the Bipartisan Infrastructure Law, which continues to deliver for Virginians,” the senators said. “We are glad that this federal funding will help close the digital divide and help ensure all Virginians have the resources and digital skills to fully take advantage of the opportunities high-speed internet provides.”

Specifically, the funding will be used to support Digital Navigators, who are trained staff that work across Virginia to help individuals access the internet, find devices, and learn crucial digital skills.

Sens. Warner and Kaine have long worked to expand broadband access and promote digital equity. This announcement complements $18.3 million provided to Virginia last month through the Digital Equity Capacity Grant Program, which also works to help close the digital divide and was made possible through the Bipartisan Infrastructure Law. 

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WASHINGTON –  Today, U.S. Sens. Mark R. Warner and Tim Kaine (both D-VA) applauded the announcement that Microporous LLC will invest $1.35 billion to build a new manufacturing facility at the Southern Virginia Megasite, which is managed by Pittsylvania County and the City of Danville. This will create 2,015 new jobs. With support from Warner and Kaine, Microporous received $100 million in federal funding from the Bipartisan Infrastructure Law, which the senators voted to pass, to support the construction of the new facility. The facility is also eligible for additional federal incentives because it falls within an area designated that has been designated an “energy community” by the Inflation Reduction Act, which both senators cast deciding votes for.

“Microporous’ selection of Pittsylvania County is a massive win for Southside and the entire Commonwealth,” said Warner. “This investment was made possible in part by a $100 million award courtesy of the bipartisan infrastructure law, which I was proud to help negotiate. This new manufacturing facility will not only create over 2,000 good-paying jobs but will also help to continue to position Virginia as the advanced manufacturing hub of the United States. I look forward to welcoming Microporous to the Commonwealth and to working together for years to come.”

“I’m thrilled that Microporous is receiving federal funding I helped secure from the Bipartisan Infrastructure Law to build a facility at the Southern Virginia Megasite in Pittsylvania County, creating over 2,000 jobs and growing the region’s economy,” said Kaine. “This is a testament to years of hard work and collaboration, including working in a bipartisan way to address permitting challenges at economic development sites in Southside. With major federal investments from the Bipartisan Infrastructure Law and smart moves to cut red tape, it’s clear our work is paying off. I look forward to continuing to partner with the company and local stakeholders to ensure Microporous’ success in Virginia.”

Warner and Kaine long worked to lay the foundation for economic development at the Southern Virginia Megasite. Previously, the senators worked with the U.S. Army Corps of Engineers and led bipartisan efforts, including permitting reform legislation, to address permitting issues that were early impediments to the Megasite’s development as a competitive site. The senators have also worked to expand clean energy manufacturing through the Inflation Reduction Act, which included provisions and tax credits to incentivize investments in clean energy, including set-aside benefits for communities like Berry Hill that qualify as energy communities.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, issued a statement after the Department of Commerce released the first Notice of Funding Opportunity (NOFO) for CHIPS Act incentives, welcoming the announcement:

“The projects that will be made possible by the CHIPS Act will strengthen our national security and create good-paying manufacturing jobs here in the United States. With limited funding available, I urge the Department of Commerce to be strategic in selecting projects in order to ensure that funding advances U.S. economic and national security objectives.”

Nearly everything that has an “on” switch – from cars to phones to washing machines to ATMs to electric toothbrushes – contains a semiconductor, but just 12 percent of these ‘chips’ are currently made in America. The CHIPS and Science Act includes $52 billion in funding championed by Sen. Warner to manufacture chips here on American soil – a move that will increase economic and national security and help America compete against countries like China for the technology of the future.

Sen. Warner, co-chair of the Senate Cybersecurity Caucus and former technology entrepreneur, has long sounded the alarm about the importance of investing in domestic semiconductor manufacturing. Sen. Warner first introduced the Creating Helpful Incentives to Produce Semiconductors (CHIPS) for America Act in June 2020 along with Sen. John Cornyn (R-TX).

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA), Chairman of the Senate Select Committee on Intelligence, issued a statement after the House of Representatives voted 243-187-1 to approve the CHIPS and Science Act of 2022, a historic bill to incentivize domestic manufacturing of semiconductors and improve U.S. technological competitiveness:

“I first began sounding the alarm about the need to reduce our reliance on other nations and safeguard our national security by bringing semiconductor production back to the U.S. more than two years ago. Since then, we’ve seen the consequences of semiconductor shortages all the way up the supply chain and down to consumers, who have faced rising costs on a variety of goods both large and small.

“This bipartisan bill will lower costs for families, strengthen our national security, and create good-paying manufacturing jobs here in the United States. I am glad that after years of unnecessary delay, it is finally being sent to the President’s desk.”

On Tuesday, Sen. Warner spoke on the floor of the U.S. Senate, urging his colleagues to pass the chips bill. Video of that speech is available for download here.

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“A few name changes later, and unfortunately more than a year later, I rise before this body again to express my strong support for this revised CHIPS+ legislation – which we just cleared an important hurdle for, over the last hour – and urge my colleagues to pass this bill as quickly as possible so we can get it out of the Senate, get it over to the House, and get it to the President’s desk. We cannot afford to waste any more time,” said Sen. Warner on the floor of the U.S. Senate. “This funding sends a message that the United States is putting a strong down-payment on maintaining our edge in the global technology race – and preventing global supply chains from being weaponized against the United States or for that matter, against our allies.”

“Semiconductors – often called ‘chips’ – are the backbone of our modern lives. They can be found in literally anything with an ‘on’ and ‘off’ switch, from cars and trucks… to washers and dryers... to smartphones and laptops… chips are an essential component in so many of the devices we use today, and the growth in chips is going to be exponential,” he continued.

“As Chairman of the Senate Select Committee on Intelligence, I see examples every day of how China is doubling down on its pursuit of advanced technologies that I think will define the 21st century. And, in many ways, the United States has started to fall behind,” he said. “Fortunately, it’s not too late to change that narrative or to change that result. With the right investments – like the ones that have been provided in this legislation – we can unleash the ingenuity of the American people, we can reinvigorate American innovation and improve our national security while setting the country up to lead the way on the technologies that will define our future.”

Sen. Warner’s remarks as prepared for delivery are available below:

Last June, I rose before this body to speak about the critical need to pass the United States Innovation and Competition Act, as it was known back then, in order to shore up U.S. investment in research, development, and manufacturing of critical technologies.

A few name changes and more than a year later, I rise before this body again to express my strong support for this revised CHIPS+ legislation and urge my colleagues to pass this bill as quickly as possible. We can’t afford to waste any more time.

This funding sends a message that the U.S. is putting a strong down-payment on maintaining our edge in the global technology race – and preventing global supply chains from being weaponized against us or our allies.

Over the past few years, China has continued to increase investments in its domestic industries – and particularly in areas that confer long-term strategic influence. This includes the semiconductor industry, which I have been particularly focused on over the past few years.

Semiconductors – often called “chips” – are the backbone of our modern lives. They can be found in anything with an “on” switch from cars and trucks… to washers and dryers... to smartphones and laptops… chips are an essential component in so many of the devices we use every single day.

For years, American semiconductor companies led the world in both design and manufacturing of this critical technology.

But our leadership has languished in recent years, and we continue to lose ground, particularly to East Asian markets. As a country we’ve gone from a 37% share of semiconductors and microelectronics production in 1990… to just 12% today.

On the other hand, China has ramped up its investment in chips… providing an estimated $200 billion in financial support between 2015 and 2025. Chinese orders for semiconductor manufacturing equipment rose 58% in 2021, and China has a goal to produce at least 70% of the semiconductors it consumes by 2030.

And this is a global competition.

Japan has passed a $6.8 billion investment package that will fund innovative chip manufacturing as well as research and development.

India has passed legislation investing $30 billion in their domestic electronics manufacturing industry, with $10 billion dedicated to chips and display manufacturing.

And our friends over in Europe – not known for moving with particular alacrity – have surged passed us. They started considering their investments after we passed the CHIPS Act, and Germany, for example, has already selected 32 semiconductor projects that will receive a combined $12 billion in investment.

The lack of investment by the U.S. has had a clear impact. From 2010 to 2020, only 17 major semiconductor fabs were built in the U.S. – while we’ve seen over 122 built elsewhere.

And the handful of major projects announced in the last year as a direct result of our initial efforts to authorize this funding – major facilities in Ohio, Arizona and elsewhere – are at risk due to sustained inaction by this body.

Right now, the cost of new fabs is 25-50% higher in the U.S. – and that’s partly due to the significantly lower financial incentives government provides for new construction compared to competing locales.

Many ask why it’s so vital for the U.S. to invest in new semiconductor production when the PRC is, by all accounts, still several generations behind.

US semiconductor firms – and firms in the adjacent areas of lithography, packaging, and metrology – still lead the world.

As Chairman of the Intelligence Committee, I can tell you unequivocally that the PRC is acutely aware of that gap – and aggressively working not just to close it, but to eventually leapfrog the U.S. and other major countries to lead in chip production and design.

Last year, President Xi Jinping announced a $1.4 trillion commitment through 2025 to develop advanced technologies like next-generation wireless networks and artificial intelligence. Technologies that will undergird entire ecosystems of innovation, commerce, and communications.

And the focus on semiconductors – which enable advances in AI, high-performance computing, hypersonics, and more – is arguably the centerpiece of this effort to ultimately control innovation ecosystems.

Meanwhile, many of the key ingredients to the U.S.’s historical success… including federal support for R&D, investment in basic research, and support for advanced manufacturing… have declined over the last 20 years.

Simply put, we are just not keeping up.

That’s why the $52 billion in funding for the CHIPS for America Act –  a bipartisan effort that Senator Cornyn, Senator Schumer, Senator Cotton, and I led a couple of years ago – is so important. And why a parallel effort in this bill – to catalyze U.S. and allied innovation in a more diverse and resilient telecommunications ecosystem – is similarly vital.

I also would note that this isn’t simply an economic competitiveness issue.

The ability to project influence and control over global supply chains has been dramatically illustrated – on both sides – by the present conflict in Ukraine.

Simply put, ensuring that the United States has an assured supply of critical semiconductors that cannot be held hostage by a hostile power is critically important to our national security.

In addition to the funding provided in this legislation for semiconductors, the bill also makes important investments in future of our wireless telecommunications.

It includes funding for the bipartisan Utilizing Strategic Allied (USA) Telecommunications Act, which fosters U.S. innovation in the race for 5G by providing $1.5 billion to invest in Western-based alternatives to Chinese equipment providers like Huawei and ZTE.

This is a bill I was proud to work on with my colleagues, Senator Burr and Senator Rubio.

It would also stand up a new Public Wireless Supply Chain Innovation Fund – to spur movement towards open-architecture, software-based wireless technologies, funding innovative, “leap-ahead” technologies in the domestic mobile broadband market.

That approach plays to U.S. strengths like software and network virtualization. And it means we have a wider set of firms – including American firms with healthier balance sheets – competing against state-sponsored Chinese vendors.

Because one thing that’s been clear over the past two Administrations: Our anti-Huawei message won’t work unless the U.S. proposes lower-cost Western alternatives.

As Chairman of the Senate Select Committee on Intelligence, I see examples every day of how China is doubling down on its pursuit of advanced technologies that will define the 21st century. I also see that the United States is falling behind.

Fortunately, it’s not too late to change that narrative. With the right investments – like the ones this bill provides – we can unleash the ingenuity of the American people… we can reinvigorate American innovation and improve our national security while setting the country up to lead the way on the technologies that will define our future.

I urge my colleagues to support this legislation, the House to pass it, and President Biden to sign it into law as soon as possible.

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WASHINGTON – Today, U.S. Sen. Mark R. Warner (D-VA) was joined by Sens. Roger Wicker (R-MS), Chris Van Hollen (D-MD), and Cindy Hyde-Smith (R-MS) in introducing bipartisan legislation to promote lasting economic prosperity in Black, brown and low-income communities. This bill would help unlock more equity and long-term financial capital for community development financial institutions (CDFIs). CDFIs often serve as a backbone for low-income or minority-owned businesses, which tend to have fewer banking relationships and less access to traditional forms of funding. 

“As a former entrepreneur and venture capitalist, I know that talent and ambition is not confined by income bracket or zip code. Unfortunately, access to start-up capital often is. CDFIs and MDIs do the invaluable work of bridging the gap and reaching small businesses in our most vulnerable communities – a role that became even more critical during the pandemic,” said Sen. Warner. “Despite the historic investments we were able to deliver through the emergency COVID-19 relief package, CDFIs remain in need of additional equity and capital to continue serving their communities. This legislation will create a new tax credit, helping spur important private-sector investments and allowing these community lenders to grow."

“Small businesses, including those in low-income and minority communities, are a pillar of the economy in Mississippi and across the nation,” said Sen. Wicker. “CDFIs and MDIs help support businesses, individuals, and entrepreneurs by providing access to capital and alternatives to predatory loans in low-access areas. I am glad to join my colleagues on this bipartisan measure to create an additional tax credit to support and expand this private-sector investment.”

“CDFI investments are a critical source of capital for small business growth in many Mississippi communities and around the country.  This bill would create a tax credit structure to attract greater private-sector investments in CDFIs, which would increase their ability to spur more long-term growth in disadvantaged areas,” said Sen. Hyde-Smith.

“Investing in our small businesses generates more shared prosperity in our communities and CDFIs are a key force multiplier, particularly in financing businesses and projects in economically underserved communities. This legislation will leverage long-term, private sector investments to support their good work and help them expand their efforts to support new and growing small businesses,” said Sen. Van Hollen.

This bill will help direct support to lenders that focus on underserved communities by creating a CDFI Tax Credit for private sector investors that make equity, equity-equivalent investments, or long-term patient capital available to CDFIs. The bill would benefit CDFIs of all types including bank CDFIs, credit union CDFIs, venture capital CDFIs, and CDFI loan funds, while providing institutions with the maximum flexibility and financial support they need to increase wealth in low- and moderate-income communities.

Bill text is available here. A one-pager of the bill is available here.

This legislation has the support of a number of organizations, including Community Development Bankers Association, National Association of Affordable Housing Lenders, Community Development Venture Capital Alliance, LISC, Opportunity Finance Network, CDFI Coalition, Inclusiv, and the Enterprise Community Loan Fund, among others.

“CDBA and its members strongly support the CDFI Tax Credit Investment Act.  The credit will provide an invaluable tool for leveraging private investment into underserved markets.  This will be a game changer,” said Jeannine Jacokes, Chief Executive Officer, Community Development Bankers Association.

“The CDFI Tax Credit Act is a practical, bipartisan way to marshal the long-term capital that struggling urban and rural communities need. It will create jobs, grow small businesses, and strengthen families by providing health services and child care. It's a smart investment in America's future,” said Buzz Roberts, President & CEO, National Association of Affordable Housing Lenders.

“CDVCA strongly supports the CDFI Tax Credit Investment Act.  It will give incentive for investors to provide flexible, long-term risk capital to create good jobs, productive wealth, and entrepreneurial capacity in underinvested communities throughout the nation,” said Kerwin Tesdell, President, Community Development Venture Capital Alliance.

“The Local Initiatives Support Corporation (LISC) applauds Senators Warner and Wicker for introducing the Community Development Tax Credit Act of 2022.  Community Development Financial Institutions (CDFIs) have time and time again proven their ability to leverage public and private capital to support investments in some of the most underserved communities in the country.  This tax credit, by incentivizing long term investments in CDFIs, will allow CDFIs to in turn provide longer term, lower cost loans to finance affordable housing, small businesses, homeownership and essential community facilities in their neighborhoods,” said Matt Josephs, Senior Vice President for Policy, LISC.

“OFN applauds Senators Warner and Wicker’s continued leadership in supporting community development financial institutions (CDFIs). The CDFI Tax Credit Investment Act will help drive more private capital to CDFIs offering affordable, responsible financing to low-wealth urban, rural, and Native communities across the country,” said Jennifer A. Vasiloff, Chief External Affairs Officer, Opportunity Finance Network.

“The CDFI Coalition is pleased to add its voice in strong support for the legislation sponsored by Sens. Warner and Wicker to establish a tax credit for Community Development Financial Institutions (CDFIs). CDFIs provide financial products and services in urban neighborhoods and rural areas underserved by traditional financial institutions, particularly those communities with high rates of poverty and unemployment. Throughout the last economic downturn, CDFIs served as economic shock absorbers, providing flexible and patient capital, rigorous risk management, and commitment to the projects in their communities and the sustainability of their borrowers. While traditional lenders fled economically distressed communities, CDFIs stepped in to fill the void. Since the advent of the economic crisis prompted by the pandemic, CDFIs have been on the frontlines of providing financial and technical assistance to small and minority-owned businesses. CDFIs fill a vital niche in the nation's financial services delivery system by serving communities and market sectors that conventional lenders cannot - with the ultimate goal of bringing CDFI customers into the mainstream economy as bank customers, homeowners and/or entrepreneurs. The proposed CDFI Tax Credit will provide a new avenue for CDFIs to raise capital that will be deployed to finance small businesses, construct affordable housing, and support community facilities in disadvantaged communities across the country. CDFIs leverage over $12 in private capital to every $1 in federal support, so the resources authorized by the tax credit will extend far beyond the amount authorized and help CDFIs to fill the widening credit gap encountered by economically disadvantaged communities across the country,” said Ceyl Prinster, President and CEO, Colorado Enterprise Fund and Chair of the CDFI Coalition.

“CDFI credit unions deliver credit and responsible banking services in communities long-excluded by the financial system.  Credit union lending runs the gamut from helping households access small emergency loans to meet basic needs; to repairing; to purchasing that first home or starting or expanding a small business.  Together CDFI credit unions are able to channel and recycle billions of dollars of loans in local economies across the country.  In order to grow reach and impact, these high-impact lenders need long-term equity like investment.  The proposed legislation by Senators Warner and Wicker to establish a CDFI Tax Credit is groundbreaking.  This bill will provide an incentive for private sector investors to make flexible long-term investments that enable our institutions to grow, expand their lending and increase wealth in low- and moderate-income communities,” said Cathie Mahon, President and CEO, Inclusiv. 

“Senators Warner and Wicker's innovative proposal to drive more resources into our communities is forward-thinking and much needed. CDFIs, whose missions are to create economic opportunity for all, already leverage private capital sources to develop community-centered investments and sustain the communities they serve. Unfortunately, the community need is outpacing the resources available to CDFIs. Additional investment options like the CDFI Tax Credit will be a game-changer for the industry across the country. The VA CDFI Coalition is excited by the possibilities these investments could create across Virginia and hope to see this pass,” said Leah Fremouw, Board President, VA CDFI Coalition.

“Enterprise enthusiastically supports the CDFI Tax Credit Act introduced by Senators Warner and Wicker. The legislation exponentially builds on the power of CDFIs to leverage private capital and supercharges their work to address systemic inequities in access to capital in low-income communities. Over three decades, we've invested $2.4 billion in under-served communities, and we know that CDFI investments are key to equitable development and broad-based economic growth,” said Elise Balboni, President, Enterprise Community Loan Fund.

To combat the hemorrhaging of jobs and economic opportunities during the pandemic, Sen. Warner has been a leader in Congress for CDFIs and MDIs. In July of 2020, he teamed up with then-Sen. Kamala Harris (D-CA), Sen. Cory Booker (D-NJ), and a bipartisan group of colleagues to introduce the Jobs and Neighborhood Investment Act – an effort that secured endorsements from a host of other advocacy organizations and civil rights groups. 

Sen. Warner was later able to secure provisions from the bill in the Coronavirus Response and Relief Supplemental Appropriations Act of 2021, which was signed into law on December 27, 2020, providing an unprecedented $12 billion in funding for CDFIs.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) issued the following statement after the Department of Justice and Federal Trade Commission announced that they would be reviewing and updating guidelines on mergers:

“I welcome the decision by the Justice Department and the Federal Trade Commission to review and update their guidelines on both horizontal and vertical mergers. As a former technology entrepreneur, I know the incredible possibilities that can be achieved when companies bring together their resources and expertise in a merger. However, over the past few years, with the increasing concentration of power in the hands of a small group of companies, acquisition has become the only exit strategy for most startups, as the built-in advantages are too great to overcome. I look forward to working with the DOJ and FTC to ensure that these new merger guidelines strike the right balance between fostering innovation and preventing harmful consolidation.”

Sen. Warner, a former tech entrepreneur, is a cosponsor of the Competition and Antitrust Law Enforcement Reform Act, sweeping legislation to reinvigorate America’s antitrust laws and restore competition to American markets.

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WASHINGTON – Today, U.S. Senator Mark R. Warner and Senator Tim Kaine, a member of the Senate Health, Education, Labor and Pensions (HELP) Committee, applauded $1,502,141 in federal funding the U.S. Department of Labor (DOL) awarded to the Hampton Roads Workforce Council to support job training and reemployment services for unemployed and underemployed Virginians in Hampton Roads. This funding was provided by DOL’s Comprehensive and Accessible Reemployment through Equitable Employment Recovery (CAREER) National Dislocated Worker Grant program, which supports organizations serving individuals most affected by the economic consequences of COVID-19, in particular those from historically marginalized communities.

“As the economy continues to recover from the impacts of the pandemic, we must ensure that Virginians most affected by the economic fallout of COVID-19 have access to the resources they need to enter or reenter the workforce,” said the Senators. “We are pleased to see this federal funding go toward helping Virginians access jobs that will be part of our economic recovery.” 

CAREER National Dislocated Worker Grants fund various reemployment services that help job seekers with search assistance, career guidance, and child care and transportation costs. Recipients can deliver training services in classroom, virtual, or work-based settings. They can also use grants to develop or upgrade virtual services, online platforms, data structures, and other technological improvements to support accessibility for job seekers. 

Both Warner and Kaine have been leaders in the Senate on efforts to support job training programs to prepare students for good-paying, in-demand jobs and help Virginians get back to work amid COVID-19. In March, Kaine reintroduced his bipartisan Jumpstart Our Businesses By Supporting Students (JOBS) Act, cosponsored by Warner, legislation to help improve access to job training programs by expanding Pell Grant eligibility. 

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WASHINGTON – Today U.S. Sen. Mark R. Warner (D-VA), Chair of the Senate Select Committee on Intelligence and member of the Senate Finance Committee, joined his colleagues Sens. Ron Wyden (D-OR), Chair of the Senate Finance Committee, Mike Crapo (R-ID), Ranking Member of the Finance Committee, Debbie Stabenow (D-MI), John Cornyn (R-TX), and Steve Daines (R-MT), in introducing the Facilitating American-Built Semiconductors (FABS) Act to strengthen supply chains and create good-paying jobs in America by incentivizing domestic manufacturing of critical semiconductor technology.  

“There’s bipartisan consensus that the U.S. must bolster investments in emerging technologies – like semiconductors – to be better positioned to compete against China’s tech dominance. However, the reality is that the U.S. heavily relies on semiconductor manufacturing abroad, which not only leaves our supply chains vulnerable but it also means we’re offshoring too many good-paying jobs,” said Sen. Warner. “That’s why I joined my colleagues on this bipartisan bill, which will build on the record $52 billion investment included in the bipartisan United States Innovation and Competition Act, by incentivizing companies to bring these critical manufacturing facilities back to the U.S. in order to create more job opportunities in our communities and strengthen our national security.”

The share of global semiconductor production in the U.S. has dropped significantly from 37 percent in 1990 to just 12 percent today. Semiconductor production is increasingly concentrated overseas, with 75 percent of global production now in East Asia. As much as 70 percent of the cost difference for producing semiconductors overseas is driven by foreign subsidies, rather than comparative advantages. The bill would help close that gap by incentivizing production of semiconductors in the United States.

Specifically, the Facilitating American-Built Semiconductors (FABS) Act would create a 25 percent investment tax credit for investments in semiconductor manufacturing, both for manufacturing equipment and the construction of semiconductor manufacturing facilities. The proposal includes incentives for the manufacturing of semiconductors, as well as for the manufacturing of the specialized tooling equipment required in the semiconductor manufacturing process. Taxpayers could elect to receive the tax credit as a direct payment, and must make this election before their facility or equipment is placed in service. To provide certainty and predictability for taxpayers, the credit would be permanent.

Earlier this month, the Senate passed the United States Innovation and Competition Act, which includes several Warner-led provisions to foster U.S. innovation and shore up American leadership in the microelectronics industry. The bill includes $52 billion to implement the CHIPS for America Act a bipartisan law championed by Sen. Warner – which called for a similar incentive tax credit included in the FABS Act – to help restore semiconductor manufacturing back to American soil. That legislation now awaits action by the House of Representatives. 

A copy of the bill text can be found here. A one-page summary can be found here.

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WASHINGTON – U.S. Sen. Mark R. Warner (D-VA) along with Sens. Roger Wicker (R-MS), Ben Cardin (D-MD), Shelley Capito (R-WV), Kyrsten Sinema (D-AZ), John Boozman (R-AR), John Hoeven (R-ND), and Cindy Hyde-Smith (R-MS) today reintroduced legislation to encourage greater private investment in rural and underserved areas, which have been particularly hard-hit by the COVID-19 health and economic crisis. Seeking to build on the proven success of the New Markets Tax Credit (NTMC) program, the bipartisan Rural Jobs Act would increase the flow of capital to rural areas and will serve as an important tool in U.S. economic recovery efforts. Companion legislation has also been introduced in the House of Representatives by Reps. Terri Sewell (D-AL) and Jason Smith (R-MO).

“The New Market Tax Credit program has a proven track record of reviving local economies and creating needed jobs in communities around the country. Unfortunately, less than one in four jobs created by this program have been in rural communities,” said Sen. Warner. “This legislation will bridge this job creation gap by earmarking additional tax credits specifically for rural and underserved regions, which are suffering tremendously due to the health and economic impacts of the COVID-19 crisis.” 

The NMTC program currently provides a modest tax incentive to private investors to invest in low-income communities. The Rural Jobs Act would build on the success of this program by designating, for two years, $500 million in NMTC investments for “Rural Job Zones” – low-income communities that have a population smaller than 50,000 inhabitants and are not adjacent to an urban area. Under this new definition, Rural Job Zones would be established in in 342 out of the 435 congressional districts across the country, including communities in the following Virginia localities: Accomack, Albemarle, Alleghany, Appomattox, Augusta, Bath, Bedford, Bland, Botetourt, Brunswick, Buchanan, Buckingham, Buena Vista, Campbell, Caroline, Carroll, Charlotte, Covington, Culpeper, Cumberland, Danville, Dickenson, Dinwiddie, Emporia, Essex, Fauquier, Floyd, Franklin, Frederick, Galax, Giles, Gloucester, Grayson, Greene, Greensville, Halifax, Henry, Highland, Isle of Wight, King and Queen, King William, Lee, Lexington, Louisa, Lunenburg, Madison, Martinsville, Mecklenburg, Middlesex, Montgomery, Nelson, Northampton, Northumberland, Norton, Nottoway, Orange, Page, Patrick, Pittsylvania, Prince Edward, Pulaski, Rappahannock, Richmond, Rockbridge, Rockingham, Russell, Scott, Shenandoah, Smyth, Southampton, Spotsylvania, Stafford, Surry, Sussex, Tazewell, Warren, Washington, Westmoreland, Wise, and Wythe. 

Since the creation of the NMTC, a total of 77 businesses and economic revitalization projects in Virginia have received financing, contributing to $1.5 billion in total project investments. 

“The Rural Jobs Zones initiative will drive more resources to projects such as the OnePartner/HMG Medical Center in Duffield, Virginia. Hampton Roads Ventures used the New Markets Tax Credit to finance a new facility that expanded medical services to residents in this medically underserved area. Rural Jobs Zones will benefit from billions in private sector financing for health centers, manufacturing businesses, broadband expansions, and Main Street revitalization efforts. We applaud Senator Warner for his continued commitment to rural economic development,” said Jennifer Donohue, CEO of Hampton Roads Ventures, LLC. 

“Senator Warner’s bill, the Rural Jobs Act, will create a powerful new tool for economic and community development in rural communities across Virginia and across the nation, it will lead to more quality jobs and better futures in rural America,” said Rob Goldsmith, President and CEO, People Incorporated Financial Services.

Under this legislation, Virginia would have more qualified census tracts than almost any other state, providing greater investment opportunity to support and grow businesses and create jobs in communities across the Commonwealth. The bill would also require that at least 25 percent of this new investment activity be targeted to persistent poverty counties and high-migration counties. There are approximately 400 persistent poverty counties in the United States, 85 percent of which are located in non-metro or rural areas. 

Bill text is available here. A bill summary is available here.

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WASHINGTON -  U.S. Senator Mark R. Warner (D-VA) and Congresswoman Maxine Waters (D-CA), Chairwoman of the House Financial Services Committee, sent a letter to Treasury Secretary Janet Yellen urging the extension of the Emergency Capital Investment Program (ECIP) application deadline to ensure the highest level of participation from eligible community development financial institutions (CDFIs) and minority depository institutions (MDIs).

“We know Treasury is committed to implementing this historic, $9 billion investment in MDIs and CDFIs, and that your staff is committed to ensuring ECIP meets its transformative potential. While we are encouraged by the speed at which Treasury has implemented the program, we are concerned that key questions are unanswered,” wrote the lawmakers. “…We urge Treasury to continue to work with industry stakeholders to identify the additional guidance needed to ensure there is robust participation in ECIP. While Treasury has already demonstrated it will thoughtfully implement ECIP, eligible institutions’ concerns should be considered and fully evaluated before the deadline to apply for ECIP closes.”

See the full text of the letter below. 

The Honorable Janet Yellen
Secretary
U.S. Department of the Treasury 
1500 Pennsylvania Avenue, Northwest
Washington, D.C. 20002

Dear Secretary Yellen:

We write to urge the Department of the Treasury (Treasury) to extend the Emergency Capital Investment Program (ECIP) application deadline. Extending the deadline would ensure eligible Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) have the time and information necessary to apply for the program. Key industry stakeholders have raised concerns that further guidance and time are needed to ensure eligible institutions take advantage of the resources available through ECIP.

We know Treasury is committed to implementing this historic, $9 billion investment in MDIs and CDFIs, and that your staff is committed to ensuring ECIP meets its transformative potential. While we are encouraged by the speed at which Treasury has implemented the program, we are concerned that key questions are unanswered. For example, we understand that guidance that affects institutions’ eligibility, capital offerings, compliance, and reporting still needs to be published. As a result, institutions that would otherwise participate are hesitant to do so and may be unable to apply by the current deadline of May 7, 2021. 

We urge Treasury to continue to work with industry stakeholders to identify the additional guidance needed to ensure there is robust participation in ECIP. While Treasury has already demonstrated it will thoughtfully implement ECIP, eligible institutions’ concerns should be considered and fully evaluated before the deadline to apply for ECIP closes.

We appreciate your commitment to this historic program and ensuring ECIP is successful. We look forward to our continued collaboration implementing ECIP and supporting CDFIs and MDIs, which play a critical role in supporting access to capital in underserved communities.

Thank you for your attention to this important issue.


Sincerely,

Mark R. Warner
United States Senator

Maxine Waters
Chairwoman, Committee on Financial
Services, U.S. House of Representatives

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