Dems prepare bill to provide $10B for critical materials

House Democrats are planning to unveil legislation this week that would set aside more than $10 billion for critical material projects to counter China’s dominance.

Reps. Haley Stevens of Michigan and Jim Clyburn of South Carolina say the proposal would rival any trade deal President Donald Trump reaches with Beijing because it would restore U.S. supply chains faster. Stevens is running for Senate to replace retiring incumbent Democrat Gary Peters.

The language, according to Stevens' and Clyburn's aides, is structured similarly to the CHIPS and Science Act, which former President Joe Biden signed into law in 2022.

The federal government defines critical materials under the Energy Act of 2020 as non-fuel minerals, elements, substances or other products the secretary of Energy determines to have a high risk of supply chain disruption and are critical to the functioning of one or more energy technologies.

The bill would create a national center within the Commerce Department focused on shoring up supply chains, and a loan program to expand manufacturing while prioritizing worker rights and environmental protections.

An escalating amount of money would fund loans, providing up to $10 billion annually by fiscal 2030 for eligible companies to build and operate projects.

The bill would similarly provide an increasing amount for the center to establish a public-private partnership for projects, spending up to $75 million annually by fiscal 2030.

The legislation would create investment and production tax credits for critical materials, which would cover 15 percent of the cost of production, or more if a project meets certain thresholds.