The recent republican budget bill has sparked concern among manufacturing advocates, as it threatens to cut domestic manufacturing credits and add trillions of dollars to the national debt. A new report by BlueGreen Alliance estimates that this bill could put 2 million jobs at risk, particularly in the manufacturing sector.
In recent years, the US has seen a resurgence in manufacturing, thanks in part to President Biden’s Bipartisan Infrastructure Law and Inflation Reduction Act. These laws incentivized green and domestic manufacturing jobs, leading to significant investments in the sector. Biden’s focus on electric vehicles (EVs) alone attracted $210 billion in investment and created 230,000 direct EV jobs, with many more supporting jobs being created as a result.
States like Nevada, New Mexico, and Georgia saw double-digit increases in their manufacturing workforces, thanks to these initiatives. However, the republican budget bill threatens to undo this progress by eliminating manufacturing credits, potentially leading to the loss of nearly 300,000 direct manufacturing jobs.
The ripple effect of job losses would extend to indirect and induced jobs, totaling over a million. Indirect jobs include supply chain roles, while induced jobs are created by economic growth in the affected areas. The loss of these jobs could have a devastating impact on local economies and communities.
States like California, Georgia, Tennessee, and South Carolina would be hit the hardest, with hundreds of thousands of jobs at risk. The bill has now moved to the Senate, where it will be up to the lawmakers to decide the fate of these jobs and the manufacturing industry as a whole.
Advocates are urging concerned citizens to reach out to their Senators and voice their opposition to the bill. Additionally, the proposed cuts in the bill include the rooftop solar credit, which could raise the cost of installing rooftop solar by an average of $10,000. Those interested in going solar are encouraged to act quickly to take advantage of the current incentives.
Overall, the impact of the republican budget bill on manufacturing jobs and the economy could be significant. It is essential for policymakers to consider the long-term consequences of their decisions and prioritize the well-being of American workers and communities.
