DOD announces $100M initiative to return manufacturing to US
Bringing factory jobs back to the U.S. has long been a talking point for the Trump administration
The Department of Defense announced Monday that it's partnering with the U.S. International Development Finance Corporation for a $100 million effort to bring manufacturing back to the U.S., FOX Business' Edward Lawrence first reported.
The money is coming from the Pentagon's CARES Act funding. The Development Finance Corporation has the authority to distribute loans through the Defense Production Act, which President Trump invoked in March.
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The effort will prioritize critical manufacturing after the coronavirus pandemic exposed gaps in the U.S. supply chain for goods inlcuding personal protective equipment and generic drugs.
This photo provided by Toyota shows Toyota employee Kirk Barber making face shields at the Toyota factory in Georgetown, Ky. (Toyota via AP)
“The COVID-19 pandemic response has highlighted what DOD has always known, a strong domestic supply chain is critical for economic and national security," Under Secretary of Defense For Acquisition And Sustainment Ellen Lord said in a statement.
Private companies will be able to use the money to acquire loans for facilities in the United States.
Bringing factory jobs back to the United States has been a talking point for the Trump administration even before the pandemic, when U.S. manufacturing was at its weakest point in a decade.
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"We welcome any American companies in Hong Kong or China's mainland, we will do what we can for full expensing and pay the cost of moving if they return their supply chains and their production to the United States," White House economic adviser Larry Kudlow told FOX Business’ Stuart Varney in May.
The Development Finance Corporation is an independent government agency created in 2018.
FOX Business' Edward Lawrence contributed to this report.