Democratic Senator Joe Manchin will throw his support behind Congresswoman Deb Haaland

Democratic Senator Joe Manchin will throw his support behind Congresswoman Deb Haaland to lead the Biden administration’s Interior Department, he said in a statement on Wednesday, likely securing her confirmation to become the first Native American in a cabinet position.

Manchin’s “yes” vote is seen as crucial to Haaland’s confirmation because he is a supporter of fossil fuel development who wields significant power in a U.S. Congress split 50-50 among Democrats and Republicans, meaning every Democratic backer counts. He had previously said that he was undecided on her bid.

“While we do not agree on every issue, (Haaland) reaffirmed her strong commitment to bipartisanship, addressing the diverse needs of our country and maintaining our nation’s energy independence,” Manchin said in a statement. “For all these reasons, I believe Deb Haaland will be a Secretary of the Interior for every American and will vote to confirm her.”

Haaland’s Senate confirmation hearing this week was contentious, with Republicans focusing on her past opposition to fossil fuel projects, as well as her likely role as a key player in President Joe Biden’s efforts to combat climate change.

The U.S. Interior Department oversees around a fifth of the nation’s land surface along with offshore waters, accounting for around 25% of domestic oil and gas production. Biden has paused new drilling leasing on federal lands, and has said he wants to eventually impose a permanent ban on new drilling and encourage broader development of renewables instead.

As Chairman of the Senate Energy and Natural Resources Committee, Manchin oversaw the two-day hearing this week. During the hearing, Manchin said he supported reducing methane emissions from pipelines on federal lands and the administration’s review of the oil and gas leasing program.

Last week, Manchin said he would oppose Biden Office of Management and Budget pick Neera Tanden, putting her confirmation at risk.
CLEVELAND, Ohio -- The Greater Cleveland Food Bank will distribute 60,000 free cloth masks as part of President Joe Biden’s plan to give 25 million masks to Americans.

“We are still working through the details, but we have requested 60,000 masks through Feeding America, who is coordinating efforts,” Food Bank spokeswoman Karen Pozna said.

Pozna said the masks would be distributed to their partner agencies’ network and during their weekly food distributions at the Muni Lot.

The Departments of Defense, Health and Human Services, and Agriculture are expected to be involved in the mass distribution of over 25 million American-made cloth masks. The face masks will be available in both adult and kid sizes in a plan to reach 12-15 million Americans hit hardest by the pandemic.

The Associated Press contributed to this report.
President Joe Biden is preparing to sign an executive order to review U.S. supply chains for large-capacity batteries, pharmaceuticals, critical minerals and semiconductors that power cars, phones, military equipment and other goods.

The United States has become increasingly reliant on imports of these goods — a potential national security and economic risk that the Biden administration hopes to address with the planned 100-day review and the possibility of increased domestic production, according to administration officials who insisted on anonymity to discuss the order. However, Biden will also look to work with international partners to ensure a stable and reliable supply chain.

The order being signed Wednesday will include sectoral reviews to be completed within one year for defense, public health and biological preparedness, information communications technology, energy, transportation and food production.

Over the past year, the fragility of vital supply chains has been revealed repeatedly. The coronavirus outbreak led to an initial shortage of masks, gloves and other protective medical equipment. Automakers in the United States and Europe are now dealing with a shortage of computer chips.

Administration officials have met with automakers and are talking with foreign counterparts on how to boost supplies in the short term. But there is no magic bullet to immediately fixing the lack of semiconductors for automakers, an administration official said.

Biden remarks on Small businesses, PPP loans
The chip shortage is indicative as to why Biden is trying to be proactive with the reviews, so that they can strengthen the supply chains to prevent additional challenges from emerging. Administration officials say that they plan to partner with industry and members of Congress as part of the effort and that no tool is off the table, including the use of the Defense Production Act.

Nearly every major automaker that produces vehicles in the U.S. has cut production because of the shortage by canceling shifts, slowing assembly line speeds or temporarily closing factories. Most automakers have tried to limit the cuts to slower-selling vehicles.

But the shortage has forced the Ford Motor Co. to at times cancel shifts at two plants that make the F-Series pickup truck, the top-selling vehicle in the nation. Besides Ford, Stellantis (formerly Fiat Chrysler), General Motors, Toyota and Honda have had to slow production.

Some are building vehicles without computer chips, which control engines, brakes, transmissions and other tasks, so they can be installed once more semiconductors are available.

The chip shortage has cost the global auto industry the production of about 1 million vehicles, according to IHS Markit. The analytics firm expects the chip crisis to hit bottom toward the end of March, with supplies constrained into the third quarter.

IHS Markit expects the lost production could be made up later in the year. But the shortage could compound already tight vehicle inventories in the U.S., driving up prices that rose when factories were closed last year due to the novel coronavirus.

Moody’s predicts that the chip shortage will cost Ford and General Motors about one-third of their pretax earnings this year. It also expects electric vehicle maker Tesla to be affected, although less than GM and Ford.

Auto industry officials say semiconductor companies diverted production to consumer electronics during the worst of the COVID-19 slowdown in auto sales last spring. Global automakers were forced to close plants to prevent the spread of the virus. When automakers recovered, there weren’t enough chips.

The U.S. Semiconductor Industry Association says the country’s share of global chip manufacturing capacity has dropped from 37% in 1990 to 12% today. The association wants Washington to fund domestic semiconductor manufacturing and research and pass an investment tax credit to help build and modernize chip factories in the U.S.

The wrangling over semiconductors dovetails with China’s economic rise as it became a manufacturing center for electronics. Chinese companies began to account for half of global semiconductor consumption in 2012, and demand has grown as China makes 90% of all smartphones, 67% of all smart televisions and 65% of all personal computers, noted a 2020 research paper by Chad Bown, a senior fellow at the Peterson Institute for International Economics.

Starting today, the Biden-Harris Administration is opening an exclusive 14-day PPP loan application period for companies and nonprofits with fewer than 20 employees. Head to www.sba.gov to learn more.
The White House is launching an effort today to ease a global semiconductor supply crunch affecting a wide array of other industries, but any boost the administration can provide is likely to be on the far side of many more months of shortages.

President Joe Biden plans to sign an executive order this afternoon for "securing America's critical supply chains." The order will address several challenges in the US supply chain, according to a fact sheet from the White House, with a particular focus on pharmaceuticals, mineral resources, semiconductors, and large-capacity batteries.

FURTHER READING
A silicon chip shortage is causing automakers to idle their factories
The order is a sort of combination of all politicians' favorite rallying cry—"more American jobs"—and an acknowledgement that shortages and production challenges in critical supply chains really have had a profound effect on the nation, especially in the past year. It calls for an immediate 100-day review that will "identify near-term steps the administration can take, including with Congress" to identify where the vulnerabilities in these supply chains are and what regulators or legislators can do to increase US manufacturing of these critical components.

In addition to the short-term review, the order also calls for a yearlong examination of risks and vulnerabilities in six other US technology supply chains: defense, public health, information technology and communications, energy, transportation, and agricultural tech.

While the order is framed in practical terms, there is of course a political component as well. According to a draft version CNBC obtained last week, the executive order does not mention any other nations (such as China) by name. Instead, it specifically seeks to review places where the US supply chain interacts with "nations that are or are likely to become unfriendly or unstable."

Silicon woes
The silicon chip shortage is indeed tied to the pandemic, according to industry group research. Automotive demand dropped early in the pandemic, as people stopped going anywhere, but demand for other uses—such as devices used for virtual learning or telemedicine—went up. As every demand pattern around the world went topsy-turvy, the industry has struggled to keep up.

The shortages are beginning to affect all kinds of products. PC graphics cards are legendarily in short supply, and wafer shortages are a contributing factor. Companies are also expressing concern that shortages will affect availability of gaming consoles and smartphones in the near future.

In both the US and worldwide, the auto industry is particularly hard hit at the moment. Several automakers have had to slow or halt production at their factories due to a lack of chips to put into new cars.

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