White House races to dole out funding from key legislation before Trump takes office

With just 10 weeks remaining before President-elect Donald Trump takes office, the Biden administration is working at a breakneck pace to distribute funding from key legislative packages. The focus is on finalizing agreements for semiconductor subsidies, climate initiatives, and military aid for Ukraine, ensuring that billions in appropriated funds are allocated before the transition.

The urgency of these efforts reflects a broader strategy by the Biden team to implement critical parts of their agenda before a potential second Trump presidency. After stepping out of the 2024 race in July, President Biden instructed his administration to accelerate the rollout of landmark legislation, including the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act (IRA)—a massive climate, healthcare, and tax reform package passed along party lines.

These efforts have gained newfound urgency since Trump’s victory, with the clock ticking down on the administration’s ability to complete its work. White House Deputy Chief of Staff Natalie Quillian, who has overseen Biden’s “Investing in America” initiative, stressed that teams across the government are working tirelessly to finalize agreements and get the benefits of these laws to the public. “We’ve had this sense of urgency since these bills were signed,” Quillian explained, adding that the goal is to “get this money out the door.”

Biden’s Challenge: Long-term Benefits in a Short Timeframe

While the administration moves quickly to allocate funds, Biden has acknowledged the difficulty of seeing the immediate impact of the initiatives. Many of the benefits, such as new infrastructure projects and jobs in manufacturing, will take years to materialize. During a recent Rose Garden speech, Biden said, “The vast majority of this work will be felt over the next decade,” referring to the trillion-dollar infrastructure projects that are just getting started. He highlighted that while the work may take time, “it’s happening,” signaling the long-term impact of his administration’s initiatives.

Distributing Key Funds Before the Deadline

Much of the final phase of Biden’s legislative agenda is focused on pushing out funds to various sectors. Since taking office, Biden has signed into law the $1.2 trillion Bipartisan Infrastructure Law, the $200 billion CHIPS and Science Act aimed at boosting semiconductor manufacturing, and the $750 billion Inflation Reduction Act, which addresses healthcare, climate change, and tax reform.

By the end of fiscal year 2024, the administration has allocated $642.1 billion of the total $1.95 trillion across these three laws. This includes $504.1 billion for infrastructure projects, which represents 96% of the available funding under the infrastructure law. Much of this will be used for state-level programs to repair roads, bridges, and improve water systems. The Inflation Reduction Act has seen 92% of its funding allocated, totaling $103 billion for clean energy projects, coastal climate resilience, and reducing pollution from oil and gas industries.

Despite the success of these efforts, there are challenges, particularly with Republicans in the House, who have attempted to repeal parts of the Inflation Reduction Act. However, key provisions, particularly tax credits for clean energy and manufacturing, have gained bipartisan support, especially in Republican districts benefiting from the incentives.

Additionally, Biden’s $1.9 trillion COVID-19 relief package, the American Rescue Plan, has already allocated most of its funds, with only a small amount held back by Congress.

Ramping Up Support for Ukraine

A key priority for the Biden administration in its final months is to ensure continued support for Ukraine as it battles Russian aggression. The administration is determined to send as much military aid and funding as possible before Trump takes office, aware that the future of US support for Ukraine could be uncertain under a second Trump presidency. With $61 billion already allocated to Ukraine earlier this year, the administration is racing to ensure that funds are used effectively while they are still available.

Semiconductor Subsidies Under the CHIPS Act

The CHIPS and Science Act has provided significant funding to boost domestic semiconductor production. The Commerce Department has nearly exhausted its $39 billion in federal subsidies for semiconductor companies, with over $36 billion already allocated. Several major companies, including Corning and Powerex, have received grants, and preliminary agreements have been made with over 20 firms. However, only one of these agreements, a $123 million award to Polar Semiconductor, has been finalized.

The CHIPS Act aims to reinvigorate US manufacturing and is expected to create tens of thousands of jobs. It has garnered broad bipartisan support, with more than $400 billion in investments and the creation of 125,000 jobs expected. While some Republicans, including Speaker Mike Johnson, have criticized parts of the bill, particularly environmental provisions, most agree that it will have a lasting economic impact.

As Biden pushes to complete these final projects, he faces the reality that the tangible benefits of his administration’s policies will take time to reach voters. However, the next few months will be critical in locking in the progress made under the current administration, with the hope that these initiatives will continue to deliver results long after Trump’s return to office.