Padilla Supports Legislation to Alleviate Supply Chain Disruptions and Invest in American Companies and Workers
WASHINGTON, D.C. — Today, U.S. Senator Alex Padilla (D-Calif.) joined Senator Tammy Baldwin (D-Wis.) and several Senate colleagues in introducing the Supply Chain Resiliency Act to help alleviate current supply chain bottlenecks and prevent future disruptions by investing in American companies.
The Ports of Los Angeles and Long Beach handle about 40 percent of the container traffic that enters the United States. Currently, there are dozens of anchored ships carrying more than 500,000 containers waiting to be processed and transported to their final destinations across the country.
The Supply Chain Resiliency Act would create an Office of Supply Chain Resiliency at the Commerce Department charged with monitoring, researching, and addressing vulnerable supply chains. The Office would provide loans, loan guarantees, and grants to small and medium manufacturers to allow them to address supply chain bottlenecks by expanding production. For example, a manufacturer that is unable to meet the increased demand for its products could get a low-interest loan from the Office of Supply Chain Resiliency to expand production. In order to ensure adequate labor supply, safe working conditions, and labor-management cooperation, the legislation includes strong labor protections as a condition of expansion support. Through committed long-term low-cost financial support, the Office of Supply Chain Resiliency would provide incentives for manufacturers seeking to expand production in the United States and the companies that get their goods to market.
“Supply chain disruptions have created a ripple effect of disruptions to consumers, businesses, and our local economies. This has been acutely felt in California with recent backlogs at our ports, and across the country from Georgia to New York,” said Senator Padilla. “I am proud to cosponsor this legislation to make much needed investments to rebuild our supply chains and create strong labor protections for California workers. I look forward to continuing to work closely with the Biden administration to address both short-term and long-term supply chain challenges, while investing in our workers, small businesses, and communities.”
“Since the beginning of the global pandemic in 2020, supply chain disruptions have impacted businesses, manufacturers, and consumers who are face rising costs for some products. I pushed the Trump Administration to do more scale up production of American made products and strengthen our supply chains and I am pushing the Biden Administration to do more as well,” said Senator Baldwin. “Our Made in America economy has been neglected, exposing us to shocks that leave us unable to produce or acquire the things we need, putting our health, economy, and security at risk. Supply chain disruptions have caused price spikes for some consumer goods. My legislation can help address these issues in the short term and put us in a stronger position going forward.”
“Rebuilding our country’s supply chains requires robust investment in long-neglected critical materials and manufacturing. Sen. Baldwin’s Supply Chain Resiliency Act serves as a much-needed foundation for strengthening these domestic supply chains and making our nation safer and more secure,” said United Steel Workers International President Tom Conway. “The bill also includes common-sense provisions to ensure workers have a voice on the job, reflecting the vital role good, community-sustaining jobs play in building and maintaining steady supply chains.”
The introduction of the Supply Chain Resiliency Act follows Padilla’s letter to U.S. Secretary of Transportation Pete Buttigieg requesting that the Department take decisive action to address supply chain bottlenecks in California and across the country. Earlier this year, Padilla also voted to pass the bipartisan Infrastructure Investment and Jobs Act to provide approximately $17 billion for port and waterway infrastructure that he advocated for. Padilla also voted to pass the United States Innovation and Competition Act in June, which would allocate tens of billions of dollars and bolster the federal government’s efforts to mitigate and address supply chain vulnerabilities.
The Supply Chain Resiliency Act is cosponsored by Senators Sherrod Brown (D-Ohio), Chris Coons (D-Del.), Catherine Cortez Masto (D-Nev.), Dianne Feinstein (D-Calif.), Kirsten Gillibrand (D-N.Y.), Alex Padilla (D-Calif.), Jacky Rosen (D-Nev.), Chris Van Hollen (D-Md.), Reverend Raphael Warnock (D-Ga.), and Sheldon Whitehouse (D-R.I.).
The full text of the bill can be found here.