Transportation and Infrastructure

Washington, D.C. – Following the decision by the Environmental Protection Agency to lower the National Ambient Air Quality Standards for fine particulate matter (PM2.5) to 9 micrograms per cubic meter, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“The Biden administration’s new PM2.5 standard takes direct aim at manufacturing investment and job creation, in direct contradiction to the president’s stated goal of strengthening manufacturing in communities all across America.

“The new standard of 9 and the EPA’s paltry 60-day implementation window will guarantee projects currently under permitting review will have to comply with this onerous decision, making an already gridlocked permitting system further gridlocked.

“Manufacturers in America will also be hard pressed to make long-term investment plans domestically as our global competitors have set more reasonable goals. The EU standard is currently 25, and a proposal there would be to reach 10 by 2030. The UK has a target of 10 by 2040.

“Governors and mayors will now have to make difficult decisions under this untenable standard. New manufacturing investments envisioned by the CHIPS and Science Act, the Bipartisan Infrastructure Law and the energy provisions of the Inflation Reduction Act will be subject to these new requirements. This revised standard will force some communities to choose which—if any—investments can proceed without running afoul of the EPA’s decree.

“By implementing such a radical standard here, our country is ceding our competitive advantage with an unforced error. All of these choices could have been avoided with a more sensible standard and a longer implementation runway.

“The EPA itself says that some 70% of particulate matter comes from nonmanufacturing sources, such as wildfires (29%), agriculture and prescribed fires (15%), crop and livestock dust (12%), unpaved road dust (10%), paved road dust (3%) and “dust” (2%). Before forcing actions that will curtail manufacturing investment and infrastructure development, the federal government should first determine how to deal with what is occurring naturally.

“To be sure, manufacturers proudly stood up for funding in the Bipartisan Infrastructure Law, CHIPS and Science Act investments and many of the policy provisions outlined in the IRA. But there is no doubt that our country will be unable to realize the benefits of these legislative accomplishments with this new rule in place. As counties and cities find themselves in nonattainment, this grave mistake will drive investment away from the United States, derail permitting and weaken the economy for all.

“The U.S. already has some of the strictest air standards in the world, and thanks to manufacturers’ innovation and leadership, some of the cleanest air and best environmental records. Manufacturers will consider all options to reverse this harmful and unnecessary standard, because it is our duty to stand against policies that hold our country back.”

Background:

Per the EPA: Nonattainment is any area that does not meet (or that contributes to ambient air quality in a nearby area that does not meet) the national primary or secondary ambient air quality standard for NAAQS.

The EPA recently reported that PM2.5 concentrations have declined by 42% since 2000, driven by major emissions reductions from both mobile sources and the power sector. As a result, America’s air is cleaner than ever.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.85 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

The Biden administration is nearing the end of a lengthy review on whether to adjust or extend tariffs on a variety of goods and materials from China—and the NAM is working to make sure manufacturers’ voices are heard.

The background: Following a 2017 investigation into China’s trade practices, the Trump administration put in place a set of levies on imported goods from China—called Section 301 tariffs—intended to incentivize change in practices by China that were found by the Office of the U.S. Trade Representative to be “unreasonable or discriminatory.”

• These included policies and practices related to technology transfer, intellectual property and innovation.

The review: In May 2022, USTR initiated a legally required four-year review of the Section 301 tariffs that focused on tariff efficacy in changing Chinese discriminatory practices and the impact of the tariffs on the U.S. economy, workers and consumers, among other considerations.

• More than 18 months later, the review remains unfinished. The NAM is urging USTR to finish and publish it—and to take actions that reduce the burdens on manufacturers while maintaining appropriate leverage to incentivize China to adhere to bilateral and multilateral commitments.
• “Ideally, USTR will conclude the four-year review in the next few weeks and make the results public,” said NAM Senior Director of International Policy Ali Aafedt. “We would like to see the results reflect the 1,498 public submissions USTR received during the process and the reduction or removal of some of the tariffs that are harming manufacturers in the U.S. more than they’re creating leverage on China.”

The exclusions: There are 429 existing exclusions from the tariffs—including 77 COVID-19-related products and 352 reinstated exclusions—which are in effect through May 31.

• The NAM has also been pushing for a new process that allows manufacturers to ask the government to exclude specific products they need from the tariffs.
• “The NAM has been calling for a new, fair and transparent Section 301 tariff exclusion process that would allow all U.S. stakeholders an opportunity to seek relief or weigh in on the existing tariffs,” said Aafedt. “The last opportunity to petition USTR for relief from Section 301 tariffs was in 2020, and a new exclusion process will help to better align the tariffs with U.S. economic goals.”

The outlook: Reports such as this one from The Wall Street Journal indicate that the Biden administration will look to rebalance the tariffs, potentially reducing those that are not in the U.S. interest and raising tariffs on other items, including, potentially, on imports from China in the electric vehicle and battery sectors.

• “The NAM will continue to push for a more strategic approach,” said Aafedt.

If your company has interest in a specific existing exclusion, USTR is seeking feedback here by Feb. 21.

Washington, D.C. – Following the Department of Energy’s announced freeze on export permits for new liquified natural gas projects, National Association of Manufacturers President and CEO Jay Timmons released the following statement:

“Once again the Biden administration’s agencies are undercutting President Biden’s own stated goals. The president has said the following:

• ‘Where is it written that America can’t lead the world in manufacturing again? … Now, thanks to all we’ve done, we’re exporting American products and creating American jobs.’[1]
• ‘This nation used to lead the world in manufacturing, and we’re going to do it again.’[2]
• ‘We just have to remember who we are. We’re the United States of America…There’s not a single thing we can’t do when we put our minds to it. And we can strengthen our energy security now, and we can build a clean energy economy for the future at the same time. This is totally within our capacity.’’[3]
• ‘[W]e’re working closely with Europe and our partners to develop a long-term strategy to reduce their dependence on Russian energy.’[4]
• ‘[W]e’re a great nation. We’re the greatest nation on the face of the earth. We really are. That’s the America I see in our future.”[5]

“Manufacturers call on the president to direct his agencies to support his agenda and to end their political war on the manufacturers who power American jobs, our economy and our national security. Today’s decision weakens our country, while giving Russia an upper hand as Europe and Asia look to transition their energy needs.”

[1]  State of the Union Address, Feb. 7, 2023.

[2]  Remarks at a Political Rally Hosted by Union Members, June 17, 2023.

[3]  Remarks on Actions to Strengthen Energy Security and Lower Costs, Oct. 19, 2022.

[4]  Remarks Announcing U.S. Ban on Imports of Russian Oil, Liquefied Natural Gas and Coal, March 8, 2022.

[5] Remarks at First Campaign Speech of the 2024 Election, Jan. 5, 2024.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.85 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

On Tuesday, Congress took an important step toward restoring three of manufacturers’ top tax priorities, as key congressional leaders unveiled a bipartisan tax agreement long sought by the NAM.

What’s going on: The $78 billion Tax Relief for American Families and Workers Act—a compromise between House Ways and Means Committee Chairman Jason Smith (R-MO) and Senate Finance Committee Chairman Ron Wyden (D-OR)—would restore immediate R&D expensing, return to a pro-growth interest deductibility standard and reinstate full expensing (also known as 100% accelerated depreciation) for businesses’ capital investments.

• The framework also includes disaster tax relief and $33 billion to partially extend a child tax credit expansion from 2021.

The background: For nearly seven decades, the tax code allowed businesses to deduct R&D costs immediately. But starting in 2022, a change required companies to amortize the costs over a period of years.

• Also in 2022, a stricter interest limitation—which acts as a tax on investment—went into effect. And last year, full expensing began to phase down.

The NAM’s role: The NAM was instrumental in the deal, having made the business case for the tax provisions’ reinstatement to lawmakers for many months, including via an ad campaign, “Keep America Resilient.”

What’s next: The NAM is urging congressional leadership to schedule a vote on the tax deal. Manufacturers can add their voices at the NAM’s Tax Action Center.

Our take: “Manufacturers appreciate Chairman Smith and Chairman Wyden’s work to reach a bipartisan tax deal with key provisions to advance U.S. economic competitiveness and support manufacturing job creation,” NAM Managing Vice President of Policy Chris Netram said in a social post Tuesday.

• “Congress must move this legislation forward immediately. The time to act is now.”

NAM in the news: Bloomberg Tax (subscription) cited the NAM’s support of the legislation, while Punchbowl News reported on the NAM’s ads in multiple Kentucky papers and Louisiana’s Shreveport Times urging support of the legislation.

With tax bill negotiations left unfinished before lawmakers left for the holiday break, the NAM is hitting the ground running in 2024.

• The NAM continues to push for manufacturers’ top three tax priorities: immediate R&D expensing, a pro-growth interest deductibility standard and full expensing for capital investments.

What’s going on: Congress has just a few weeks to reach a government funding deal before a Jan. 19 deadline, “when funding for a range of government agencies is scheduled to lapse,” according to POLITICO. There is a second funding deadline on Feb. 2.

• The NAM has been calling on Congress to prioritize inclusion of the three tax provisions in any measure it passes.
• The NAM recently led a coalition of more than 1,300 businesses and associations in highlighting the urgent need for congressional action.

What’s needed: Congress must reinstate immediate R&D expensing; loosen a strict interest limitation; and return to full expensing (also known as 100% accelerated depreciation) for businesses, the NAM said.

Why it’s important: If these fixes aren’t made, manufacturing R&D, jobs and competitiveness could all suffer.

• Some 78% of manufacturers say the higher tax burden has decreased the funds available to expand their manufacturing activities within the U.S., according to the Q2 2023 NAM Manufacturers’ Outlook Survey.

The last word: “These tax provisions are some of the most critical issues facing manufacturers today,” said NAM Vice President of Domestic Policy Charles Crain.

• “Congress must act immediately to protect manufacturing jobs and maintain America’s competitiveness on the world stage.”

Act now: Visit the NAM’s Tax Action Center to send a message directly to Congress about these critical priorities.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement in response to new proposed regulations on the Clean Hydrogen Production Tax Credit:

“The hydrogen tax credit has the potential to be the world’s strongest tool to build a hydrogen economy, but the Treasury Department proposal would impose so many hurdles to qualifying for the credit that the Biden administration will be left unable to achieve some of its top economic and environmental goals. Manufacturers are deeply disappointed with today’s announcement.

“Hydrogen is vital to reducing carbon emissions and to energy security efforts. If these regulations are put into place, America will lose out on job-creating investments across the country. To incentivize truly transformative growth in the necessary infrastructure to produce, transport and use hydrogen, the Biden administration should finalize a flexible credit that rejects additional requirements that were not included in the original legislation. And to realize the full potential of Inflation Reduction Act provisions, the CHIPS and Science Act and more, permitting reform must be a top priority in the new year.”

Background: The NAM has been urging the Treasury Department to create a flexible credit that rejects additionality and time matching provisions and provides a mechanism that supports carbon capture. More information on the NAM’s advocacy and the impact of these tax credit provisions can be found here.

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.75 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

Washington, D.C. – National Association of Manufacturers President and CEO Jay Timmons released the following statement on U.S. Customs and Border Protection’s closure of two critical rail ports in Texas:

“Each day that rail operations at Eagle Pass and El Paso are suspended, more American jobs are put at risk. Snarling supply chains in this way could throw manufacturing production into disarray. Mexico is the United States’ largest trading partner, which means this shutdown threatens to inject serious uncertainty into the economy heading into the New Year.

“Manufacturers support CBP in their mission to protect national security, but stifling trade between the U.S. and Mexico is a direct threat to our economic competitiveness. It is not the solution to immigration challenges, but it does wrongly punish those who are not at fault. The NAM will continue working with the White House, CBP and leaders in the House and Senate to swiftly reopen the rail ports. This is yet another painful consequence of our broken immigration system, and our leaders need to recognize the urgency of fixing that system. Manufacturers are focused on solutions that uphold our laws and strengthen our economy.”

-NAM-

The National Association of Manufacturers is the largest manufacturing association in the United States, representing small and large manufacturers in every industrial sector and in all 50 states. Manufacturing employs nearly 13 million men and women, contributes $2.91 trillion to the U.S. economy annually and accounts for 53% of private-sector research and development. The NAM is the powerful voice of the manufacturing community and the leading advocate for a policy agenda that helps manufacturers compete in the global economy and create jobs across the United States. For more information about the NAM or to follow us on Twitter and Facebook, please visit www.nam.org.

U.S. Customs and Border Protection has closed two critical rail ports in Texas in an effort to stem a surge of migration, according to CNBC.

What’s going on: Immigration authorities “announced rail operations would be halted at El Paso and Eagle Pass, Texas, beginning Monday in light of the surge of migrants crossing the border.”

• Officials said this temporary suspension of operations will enable the government to redirect personnel to assist Border Patrol with taking migrants into custody.
• “Collectively both railroads operate 24 trains daily at these crossings.”

Why it’s important: More than $200 million in goods, wages and transportation are lost each day the El Paso and Eagle Pass rail lines remain shuttered, according to Union Pacific.

• The closures are affecting international commerce, with mounting impacts on the agricultural, food, automotive, consumer goods and industrial commodity sectors, among others.
• A total of nearly 10,000 rail cars are being held on both sides of the U.S.–Mexico border, according to Union Pacific.
• “According to Bureau of Transportation Statistics data, El Paso and Eagle Pass accounted for $33.95 billion, or 35.8%, of all cross-border rail traffic from November 2022 – October 2023,” CNBC reports.

The backdrop: The developments come the same week Texas Gov. Greg Abbott “signed into law a measure giving state and local police authority to arrest and deport migrants caught crossing the border illegally,” according to The Wall Street Journal (subscription).

What we’re doing: The NAM is in communication with the White House, U.S. Customs and Border Protection and key Senate and House members on the issue, advocating for an immediate solution to the reopening of the rail ports.

• “Mexico is the United States’ largest trading partner, and enabling trade between the two countries is critical for North American economic competitiveness,” said NAM Director of Trade Facilitation Policy Ali Aafedt. “The NAM will continue to advocate for solutions that uphold our laws while also facilitating legitimate trade.”

The NAM is firing on all cylinders to accomplish manufacturers’ top tax priorities: restoring immediate R&D expensing, pro-growth interest deductibility and full expensing.

Time is running out, as Congress must act by early 2024 to allow manufacturers to benefit from these provisions for the 2022 and 2023 tax years. Here’s what the NAM is doing to reach the finish line and why it matters so much to the industry and to the economy as a whole.

What we’re doing: The Executive Committee of the NAM Board of Directors recently sat down with House Speaker Mike Johnson (R-LA) to emphasize the importance and urgency of these measures. The Executive Committee has also raised the issue directly with the White House, and the NAM’s members—90% of which are small and medium-sized firms—have been contacting legislators to urge immediate action since early this year.

• In addition, while pressing the case relentlessly with the White House and congressional leaders himself, NAM President and CEO Jay Timmons has met personally with House and Senate tax negotiators to make manufacturers’ case for these reforms.
• NAM experts have also hosted multiple briefings for key legislators and congressional staffers, featuring manufacturers who explained how the withdrawal of these policies has harmed their businesses.
• Ratcheting up the ante on air and online, the NAM has applied pressure publicly in key districts, running a new ad campaign urging congressional action that has garnered about 80 million impressions so far. It also launched an action center to help manufacturers contact their legislators and spotlight the numerous companies that will be hard hit if pro-growth policies are not reinstated.

Why it matters: All three of these tax provisions are crucial to manufacturers’ ability to innovate, invest in their employees and make the American economy more competitive.

• R&D: The U.S. is one of only two countries (the other being Belgium) that doesn’t permit immediate expensing of R&D costs, a vital incentive for innovation. China, on the other hand, gives companies a “super deduction” for R&D expenses.
• Interest deductibility: A recent tax policy change made it more expensive for manufacturers to make critical purchases for their facilities, by imposing a stricter standard for deducting interest. This is a particularly heavy burden for a capital-intensive industry like manufacturing, amounting to a tax on companies’ investments in their operations and workers.
• Full expensing: This provision allows companies to expense their equipment purchases in the year they are made, supporting manufacturers’ investments in their businesses. But the policy is set to be phased out soon and must be saved, as it is crucial for small and medium-sized manufacturers looking to expand their operations. 

The last word: “Manufacturing is the backbone of America, and the NAM is going all-out to make sure Congress acts on these critical priorities,” said NAM Managing Vice President of Policy Chris Netram. “Right now, leaders on Capitol Hill need to hear from manufacturers in their communities with a simple, clear message—act on our critical tax priorities now.” 

Take action: Congressional leaders, including Speaker Johnson, have recently pointed out a need to hear from more manufacturers. Lend your voice—check out the resources in the action center to learn more.

For nearly three years, many manufacturers in the U.S. have been operating at a disadvantage to their foreign competitors due to the lack of a Miscellaneous Tariff Bill. And that needs to change, the NAM told Congress yesterday.

What’s going on: The NAM, along with more than 200 manufacturers and industry partners, urged key members of the House and Senate to pass the MTB as soon as possible this year.

• The measure—which expired at the end of 2020—temporarily eliminates or reduces tariffs on products not readily available in the U.S. and is typically renewed by Congress every few years on a bipartisan basis.
• The previous MTB was passed unanimously in 2018, and in June 2021, the Senate approved an amendment including it and other trade provisions by a strong bipartisan vote of 91–4.

Why it’s important: Since the last MTB’s expiration, manufacturers and other businesses have paid more than $1.4 billion in anticompetitive tariffs to get items they are unable to source in the U.S., according to an NAM analysis.

• In addition to incentivizing overseas manufacturing and costing jobs, the additional expenses are harming local economies and American taxpayers by increasing the prices on manufactured goods.

What should be done: “Congress can reverse course by passing the MTB through 2026 with meaningful retroactivity and reauthorizing future MTB cycles without broad and arbitrary restrictions that would be difficult to implement,” the NAM and partner groups said.

• “Congressional passage of the MTB will spur growth: according to the U.S. International Trade Commission, tariff relief under the previous MTB boosted U.S. GDP annually by as much as $3.3 billion and output annually by as much as $6.3 billion.”

The last word: “If Congress is serious about supporting manufacturers and workers in the United States, they must prioritize the passage of the MTB by the end of this year,” said NAM Director of Trade Facilitation Policy Ali Aafedt.