Biden admin locks $6B in climate funding behind DEI, inclusivity requirements
President Biden's administration is locking roughly $6 billion in manufacturing and climate funding behind vague DEI and justice initiatives.
President Biden's administration locked $6 billion in federal funding for energy and manufacturing behind a series of mandates relating to DEI initiatives, the Department of Energy has revealed.
The DOE announced a $6 billion in investments granted to over 30 projects across the country as part of Biden's "Investing in America" agenda on Monday. The projects are aimed at boosting "decarbonization technologies" that the department says are "crucial to meeting the Biden-Harris Administration's climate and domestic manufacturing goals."
"Spurring on the next generation of decarbonization technologies in key industries like steel, paper, concrete, and glass will keep America the most competitive nation on Earth," Energy Secretary Jennifer Granholm said in a statement. "These investments will slash emissions from these difficult-to-decarbonize sectors and ensure American businesses and American workers remain at the forefront of the global economy."
The announcement later clarifies that projects receiving funding are required to develop and implement a "Community Benefits Plan" (CBP) ensuring that their impact will be "equitable and inclusive." The department also says it will monitor the implementation and may withdraw awarded funding if they are not satisfied.
"The quality of CBPs will impact a project’s selection and ongoing evaluation throughout its lifecycle," the department added. "[The] phased project management approach allows the office to assess a project’s viability for continuation at major project milestones."
"CBPs are based on a set of four core interdependent policy priorities: engaging communities and labor; investing in America's workforce; advancing diversity, equity inclusion and accessibility; and implementing the Justice40 initiative," the department says on its website.
The "Justice40" initiative is a federal policy under the Biden administration requiring that at least 40% of overall benefits of certain federal investments go to "disadvantaged communities."
The DOE's Office of Clean Energy Demonstrations is handling negotiations with companies applying for funding awards. It named dozens of companies selected to begin the process in a separate release on Monday.
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Examples include up to $500 million for the development of a "green aluminum smelter," and up to $125 million for "glass furnace decarbonization," among many others.
"By prioritizing tangible community benefits, the Office of Clean Energy Demonstrations (OCED) helps ensure the next chapter in America's energy story is marked by greater justice, equity, security, and resilience," the agency said.
Biden's administration has a history of linking its economic initiatives to DEI and other Democratic priorities.
The administration's highly touted bipartisan CHIPS and Science Act, one of the top legislative victories of Biden's tenure, was also quietly tied to a number of DEI initiatives.
That legislation, which Biden signed in August 2022, is designed to shore up U.S. semiconductor supply chains, earmarking $52.7 billion to establish the CHIPS for America Fund, which supports private-sector investment in domestic research and manufacturing. However, according to a review of federal filings, the funding is similarly contingent on applicants meeting a series of DEI requirements.
The White House pushed back on criticism of the requirements in a statement after Republicans in Congress started highlighting the issue.
"Thanks to President Biden’s Investing in America agenda, companies from across the world are investing billions of dollars building factories across the country and training veterans, people from rural communities, and Americans from all walks of life for the well-paying jobs they’ll provide," White House spokesperson Robyn Patterson wrote last week.
Fox News' Thomas Catenacci contributed to this report.