WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the Office of the Comptroller of the Currency’s (OCC) priorities before the Committee on Financial Services of the U.S. House of Representatives.
In his testimony, Mr. Hsu discussed the OCC’s work to guard against complacency, adapt to digitalization, manage climate-related financial risk, and promote fairness in banking. He also provided an overview of the state of the federal banking system and recent key regulatory developments.
WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned Ali Yagoub Gibril and Osman Mohamed Hamid Mohamed, pursuant to Executive Order (E.O.) 14098, for leading the Rapid Support Forces’ (RSF) war campaign. The RSF’s attacks in North Darfur, which started last month, have caused dozens of civilian casualties, including children. The RSF encirclement of North Darfur’s capital of El Fasher and recent fighting between the RSF and the Sudanese Armed Forces have endangered nearly one million Sudanese civilians in the last major safe haven in Darfur, impeded humanitarian access, increased the risk of mass atrocities, and could undermine vital peace efforts.
“While the Sudanese people continue to demand an end to this conflict, these commanders have been focused on expanding to new fronts and battling for control of more territory,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “The United States will continue to use sanctions to support the peace process and act against those on either side who further perpetuate the conflict.”
Ali Yagoub Gibril (Gibril) is the RSF Central Darfur commander. Gibril has been instrumental in the RSF’s operations in Darfur, including recent RSF offensives in North Darfur. Gibril currently commands RSF troops around El Fasher, North Darfur, the last major SAF-controlled area in Darfur.
Gibril is being designated, pursuant to E.O. 14098, for being a foreign person who is or has been a leader, official, senior executive officer, or member of the board of directors of the RSF, an entity that has, or whose members have, engaged in actions or policies that threaten the peace, security, or stability of Sudan relating to the tenure of such leader, official, senior executive officer, or member of the board of directors.
Osman Mohamed Hamid Mohamed (Hamid) is a major general in the RSF and the group’s head of operations. He has given statements on behalf of the RSF after large RSF victories and is an important part of RSF operational planning.
Hamid is being designated, pursuant to E.O. 14098, for being a foreign person who is or has been a leader, official, senior executive officer, or member of the board of directors of the RSF, an entity that has, or whose members have, engaged in actions or policies that threaten the peace, security, or stability of Sudan relating to the tenure of such leader, official, senior executive officer, or member of the board of directors.
As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.
Click here for more information on the individuals designated today.
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WASHINGTON — Today, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) is targeting the Ortega-Murillo regime’s repression of the Nicaraguan people and its ability to manipulate the gold sector and profit from corrupt operations. Treasury is imposing sanctions on three Nicaragua-based entities, the Training Center of the Russian Ministry of Internal Affairs in Managua (RTC); Compania Minera Internacional, Sociedad Anónima (COMINTSA); and Capital Mining Investment Nicaragua, Sociedad Anónima (Capital Mining), pursuant to Executive Order (E.O.) 13851, as amended.
The RTC is a Nicaragua-based subdivision of the Government of the Russian Federation’s (GOR) Ministry of Internal Affairs, which trains those under the Ortega-Murillo regime’s command under the Russian authoritarian government’s playbook of oppression. It is a key actor in the Nicaraguan regime’s repression of civil society and unjust detention and imprisonment of individuals for expressing dissent, or otherwise peacefully exercising their human rights and fundamental freedoms.
The designations of COMINTSA and Capital Mining target government-affiliated gold companies generating revenue for the Ortega-Murillo regime. Gold is Nicaragua’s top commodity export, and this action aims to degrade the ability of the Ortega-Murillo regime to manipulate the sector and profit from the corrupt operations of COMINTSA and Capital Mining.
“By leveraging the training it receives from the Russia-backed RTC and the revenue it generates from exploiting the gold sector, the Ortega-Murillo regime has continued its anti-democratic campaign of repression against its citizens,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence, Brian E. Nelson. “The United States remains committed to using our tools to support the Nicaraguan people, including by constraining the Ortega-Murillo regime’s ability to fund its oppressive and destabilizing activities.”
These actions are being taken these in response to the Ortega-Murillo regime’s continued repression of the people of Nicaragua and continued exploitation of vulnerable migrants, including via the facilitation and profiting off of irregular migration to the United States.
Nicaragua is one of Russia’s main partners in Central America, as evidenced by a series of high-level visits to Managua by representatives of the GOR. Russia’s Ministry of Internal Affairs established a training center in Managua to provide specialized courses for the Nicaraguan National Police (NNP) and law enforcement of other Latin American countries. OFAC designated the NNP, the primary law enforcement entity in Nicaragua, on March 5, 2020, pursuant to E.O. 13851 for being responsible for or complicit in, or having directly or indirectly engaged in, serious human rights abuse in Nicaragua. The NNP was also designated pursuant to the Nicaraguan Human Rights and Anticorruption Act of 2018 for being responsible for or complicit in, or responsible for ordering, controlling, or otherwise directing, or having knowingly participated in, directly or indirectly, significant acts of violence or conduct that constitutes a serious abuse or violation of human rights against persons associated with the protests in Nicaragua in April 2018.
Since its opening in Managua in October 2017, the RTC has been operating in Managua, training members of the NNP as part of a bilateral engagement between Nicaragua and Russia, Russian law enforcement officials at the RTC have trained members of the NNP, which has enabled the regime’s brutal repressive tactics, training the NNP to conduct repression and tyrannical persecution in support of persecutions of the Nicaraguan people. The NNP is a central actor in the Ortega-Murillo regime’s violent oppression of the Nicaraguan people. The RTC’s support of the NNP helps maintain the cycle of violent oppression in Nicaragua. The NNP is a repressive state apparatus, carrying out extrajudicial killings, using live ammunition against peaceful protests, and even participating in death squads. The RTC in Nicaragua, by admission of President Ortega himself, trains Nicaraguan law enforcement officers to better confront “coup plotters,” referring to those citizens who dare to publicly voice their opposition to the regime.
The RTC is being designated pursuant to E.O. 13851, as amended, for having materially assisted, sponsored, or provided financial, material, or technological support for, or goods or services in support of, the NNP.
COMINTSA is a Nicaraguan mining company and one of several regime-aligned companies that operate or have operated in Nicaragua’s gold sector. Having revoked the license for operations from another artisanal mining company, the General Directorate of Mines granted COMINTSA concession areas for exploration and extraction of gold in the in the Autonomous Region of the North Caribbean Coast of Nicaragua in 2023. COMINTSA is reportedly owned and led by Salvador Mansell Castrillo (Mansell Castrillo), who is under OFAC sanctions.
On November 15, 2021, OFAC designated Mansell Castrillo pursuant to E.O. 13851 for having served as an official of the Government of Nicaragua at any time on or after January 10, 2007. Subsequently, on October 24, 2022, OFAC designated the General Directorate of Mines pursuant to E.O. 13851 for being owned or controlled by or having acted or purported to act for or on behalf of, directly or indirectly, Mansell Castrillo.
COMINTSA is being designated pursuant to E.O. 13851, as amended, for operating or having operated in the gold sector of the Nicaraguan economy.
Capital Mining is a Nicaraguan mining company and one of several regime-aligned companies that operate in Nicaragua’s gold sector. Capital Mining is an intermediary in the gold sector controlled by Laureano Ortega Murillo (Ortega Murillo), the son of President Ortega and Vice President Murillo, and Mansell Castrillo that is known to charge some gold mining companies to do business in Nicaragua. On April 17, 2019, OFAC designated Ortega Murillo pursuant to E.O. 13851 for being an official of the Government of Nicaragua or having served as an official of the Government of Nicaragua at any time on or after January 10, 2007.
Capital Mining is being designated pursuant to E.O. 13851, as amended, for operating or having operated in the gold sector of the Nicaraguan economy.
In addition to the sanctions issued by OFAC today, the United States Department of State is issuing over 250 visa restrictions for Nicaraguan officials, and the Departments of State, Treasury, and Homeland Security are jointly releasing an advisory to alert the travel industry of the ways in which smugglers are facilitating illegal migration to the United States and remind the industry of key steps that they should take to avoid complicity in the exploitation of migrants.
This action reflects U.S. efforts to promote responsible practices in the industry, prevent and disrupt illicit activity, and enhance compliance with lawful immigration and migration pathways.
As a result of today’s action, all property and interests in property of the designated persons described above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, individually or in the aggregate, 50 percent or more by one or more blocked persons are also blocked. Unless authorized by a general or specific license issued by OFAC, or exempt, OFAC’s regulations generally prohibit all transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or otherwise blocked persons.
In addition, financial institutions and other persons that engage in certain transactions or activities with the sanctioned entities and individuals may expose themselves to sanctions or be subject to an enforcement action. The prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any designated person, or the receipt of any contribution or provision of funds, goods, or services from any such person.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s Frequently Asked Question 897. For detailed information on the process to submit a request for removal from an OFAC sanctions list.
Click here for more information on the entities designated today.
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WASHINGTON – The United States applauds the productive Annual Meetings of the Asian Development Bank (ADB) and welcomes the successful replenishment of the Asian Development Fund (ADF-14) and the Technical Assistance Special Fund (TASF-8). The ADF supports the poorest and most vulnerable countries in Asia and the Pacific—including small island developing states in the Pacific—as well as the people of Afghanistan and Myanmar. With a pledge of $174.4 million, subject to Congressional authorization and appropriation, the United States is proud to be the third largest donor to ADF-14 and commends all donors and ADB Management for their strong support toward this historic $5 billion replenishment.
As countries grapple with the accelerating impacts of climate change, high debt burdens, and geopolitical turmoil in the region and globally, ADF-14 will provide the critical support necessary to maintain hard-won development gains and continue to accelerate economic development. Resources from ADF and complementary technical assistance from TASF will build debt management capacity and deliver transformative and high-quality projects with strong monitoring, safeguards, and value for money procurement, supporting long-term, inclusive, sustainable growth in the region.
ADB Governors also reflected on progress made on ADB’s evolution journey, including financial reform measures taken that will unlock $100 billion in new financing headroom over the next 10 years – a 40 percent increase – and the design of new innovative instruments. Moving forward, a key priority will be stepping up private sector development and private capital mobilization in support of the region’s development aspirations.
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The Federal Reserve Board and the Office of the Comptroller of the Currency (OCC) today announced a joint public meeting on the proposal by Capital One Financial Corporation, of McLean, Virginia, to acquire Discover Financial Services, of Riverwoods, Illinois. The proposal includes the merger of Discover Bank, of Greenwood, Delaware, into Capital One, National Association, of McLean, Virginia.
The purpose of the public meeting is to collect information from a wide range of stakeholders as the agencies evaluate the applications. By law, the agencies are required to evaluate:
The public meeting will be held virtually on July 19, 2024, at 9:00 a.m. EDT. Members of the public seeking to present oral comments must register by 12:00 p.m. EDT on June 28, 2024, through the online registration webpage, which will be posted on the Board’s Capital One-Discover Application Reading Room by May 28, 2024. Further information and requirements to present, as well as registration information to view the public meeting, are available in the attachment from the agencies.
Also today, the agencies announced that they are extending the public comment period for the applications to give interested parties additional time to comment. Comments on the applications will now be accepted through July 24, 2024.
WASHINGTON – The U.S. Treasury Department yesterday co-hosted a convening with the White House on ensuring American consumers realize the full benefits of the Inflation Reduction Act’s incentives to lower household utility costs. The Inflation Reduction Act extends and strengthens tax credits that reduce the costs of energy efficient appliances, energy saving home improvement projects, and residential clean energy installations.
U.S. Deputy Secretary of the Treasury Wally Adeyemo, Chief Implementation Officer for the Inflation Reduction Act Laurel Blatchford, and other senior Treasury officials joined the convening to discuss the Department’s outreach and public education efforts on the Inflation Reduction Act’s clean energy provisions, focused on ensuring all Americans benefit from the growth of the clean energy economy.
Senior Treasury officials also highlighted the importance of private sector and philanthropic partners in spreading awareness about the consumer credits and discussed areas for collaboration, including on better ensuring that working families can afford key home upgrades. New initiatives and programs were announced by both the U.S. government and external partners aimed at addressing the twin challenges of awareness and affordability.
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WASHINGTON – Secretary of the Treasury Janet L. Yellen today released the following statement at the conclusion of the Section 301 review:
“Since taking office, President Biden and I have made clear that we will take necessary actions to advance the interests of American workers and firms. The results of the Section 301 review announced today outline strategic and targeted steps that are needed to respond to specific long-standing unfair trade practices by the People’s Republic of China.
During my trip to Beijing last month, I raised our concerns on Chinese industrial overcapacity to economic policymakers at the highest levels of the PRC government. President Biden and I have seen firsthand the impacts of surges of certain artificially cheap Chinese imports on American communities in the past, and we will not tolerate that again. These overcapacity concerns are widely shared by our partners across advanced economies and emerging markets, motivated not by anti-China policy but by a desire to prevent damaging economic dislocation from unfair economic practices. These problems built up over time and will not be solved in a day. My team and I will continue to directly address with PRC counterparts our broad concerns with the PRC’s long-standing macroeconomic imbalances and industrial policy, along with the resulting spillovers on the U.S. and global economy.
I look forward to continuing to advance American interests and lead the Administration’s responsible management of the U.S.-China economic relationship.”
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WASHINGTON — Today, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) designated one Russian individual and three Russia-based companies involved in an attempted sanctions evasion scheme in which an opaque and complex supposed divestment could have unfrozen more than $1.5 billion worth of shares belonging to U.S.-designated Russian oligarch Oleg Vladimirovich Deripaska (Deripaska).
OFAC designated Deripaska on April 6, 2018 pursuant to Executive Order (E.O.) 13661 for having acted or purported to act for or on behalf of, directly or indirectly, a senior official of the Government of the Russian Federation as well as pursuant to E.O. 13662 for operating in the energy sector of the Russian Federation economy. Deripaska is also sanctioned by Australia, Canada, the European Union, New Zealand, and the United Kingdom. On September 29, 2022, the U.S. Department of Justice charged Deripaska with conspiring to violate and evade U.S. sanctions in violation of the International Emergency Economic Powers Act.
“Treasury will continue to take action to protect the integrity of our multilateral sanctions regime and stop evasion by the Kremlin and its oligarch enablers,” said Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson. “Anyone still doing business in or with Russia should be skeptical of supposed divestment schemes that involve shell companies or proxies linked to sanctioned oligarchs. Corporate sales and acquisitions can be abused for money laundering and sanctions evasion.”
In June 2023, Deripaska coordinated with Russian national Dmitrii Aleksandrovich Beloglazov (Beloglazov), the owner of Russia-based financial services firm Obshchestvo S Ogranichennoi Otvetstvennostiu Titul (Titul), on a planned transaction to sell Deripaska’s frozen shares in a European company. Within weeks of this coordination, Russia-based financial services firm Aktsionernoe Obshchestvo Iliadis (Iliadis) was established as a subsidiary of Titul. In early 2024, Iliadis acquired Russia-based investment holding company International Company Joint Stock Company Rasperia Trading Limited (Rasperia), which holds Deripaska’s frozen shares.
Today, Beloglazov, Titul, and Iliadis were designated pursuant to E.O. 14024 for operating or having operated in the financial services sector of the Russian Federation economy. Rasperia was designated pursuant to E.O. 14024 for being owned or controlled by, or having acted or purported to act for or on behalf of, directly or indirectly, Iliadis.
This scheme is consistent with typologies highlighted by the multilateral Russian Elites, Proxies, and Oligarchs (REPO) Task Force in a March 9, 2023 Global Advisory. As noted in the REPO Task Force Global Advisory, sanctioned Russian individuals leverage complex ownership structures to disguise their connections to particular assets or entities and use enablers to aid evasion efforts. A March 7, 2022 Financial Crimes Enforcement Network (FinCEN) Alert also identified certain red flags, including the use of corporate vehicles to obscure ownership and source of funds and the use of third parties to shield the identify of sanctioned persons, to assist financial institutions in identifying potential Russian sanctions evasion attempts.
As a result of today’s action, all property and interests in property of the persons above that are in the United States or in the possession or control of U.S. persons are blocked and must be reported to OFAC. In addition, any entities that are owned, directly or indirectly, 50 percent or more by one or more blocked persons are also blocked. All transactions by U.S. persons or within (or transiting) the United States that involve any property or interests in property of designated or blocked persons are prohibited unless authorized by a general or specific license issued by OFAC, or exempt. These prohibitions include the making of any contribution or provision of funds, goods, or services by, to, or for the benefit of any blocked person and the receipt of any contribution or provision of funds, goods, or services from any such person. In addition, sufficient due diligence should be conducted to determine that any purported divestment in fact occurred and that the transfer of ownership interests was not merely a sham transaction.
The power and integrity of OFAC sanctions derive not only from OFAC’s ability to designate and add persons to the SDN List, but also from its willingness to remove persons from the SDN List consistent with the law. The ultimate goal of sanctions is not to punish, but to bring about a positive change in behavior. For information concerning the process for seeking removal from an OFAC list, including the SDN List, please refer to OFAC’s FAQ 897 here. For detailed information on the process to submit a request for removal from an OFAC sanctions list, please click here.
For identifying information on the individual and entities sanctioned today, click here.
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Washington– Today President Biden issued an order prohibiting the purchase and requiring the divestment of certain real estate operated as a cryptocurrency mining facility located within one mile of Francis E. Warren Air Force Base (F.E. Warren AFB), as well as requiring the removal of certain improvements and equipment at the property by MineOne Partners Limited, which is ultimately majority owned by nationals of the People’s Republic of China; MineOne Cloud Computing Investment I L.P.; MineOne Data Center LLC; and MineOne Wyoming Data Center LLC (collectively MineOne), as well as their affiliates.
MineOne acquired the property in June 2022 and then made improvements to allow for use of the property for specialized cryptocurrency mining operations within one mile of F.E. Warren AFB in Cheyenne, Wyoming, a strategic missile base and home to Minuteman III intercontinental ballistic missiles. The Committee on Foreign Investment in the United States (CFIUS or the Committee) reviewed and investigated this transaction pursuant to authorities provided by Congress in the Foreign Investment Risk Review Modernization Act of 2018 (FIRRMA) to cover real estate transactions in close proximity to certain sensitive U.S. facilities, including F.E. Warren AFB.
“Today’s divestment order underscores President Biden’s steadfast commitment to protecting the United States’ national security. It also highlights the critical gatekeeper role that CFIUS serves to ensure that foreign investment does not undermine our national security, particularly as it relates to transactions that present risk to sensitive U.S. military installations as well as those involving specialized equipment and technologies,” said Secretary of the Treasury Janet L. Yellen.
CFIUS identified national security risks arising from the transaction relating to the proximity of the property to F.E. Warren AFB. CFIUS also assessed the risk associated with the presence of specialized equipment on the property used to conduct cryptocurrency mining operations, some of which is foreign-sourced and presents significant national security concerns. The proximity of the foreign-owned cryptocurrency mining facility to a strategic missile base and key element of America’s nuclear triad, and the presence of specialized and foreign-sourced equipment potentially capable of facilitating surveillance and espionage activities, presented a significant national security risk that led to CFIUS’s referral to the President. To address this risk, the President’s order directs both the prompt divestment of foreign ownership of the property as well as the removal of the equipment and improvements that were added to the property.
By law, CFIUS is authorized to negotiate and enter into an agreement or take other actions to mitigate the national security risk arising from a covered transaction. In some cases, however, CFIUS determines that mitigation of the national security risk is not adequate or appropriate, and that the President should prohibit a transaction. In such instances, most transaction parties voluntarily take steps to forgo or abandon a transaction. In other cases, parties are unwilling or unable to take actions or to timely agree to terms and conditions the Committee deems necessary to adequately address the national security risks. In all CFIUS reviews, the parties’ conduct can impact the Committee’s assessment of what steps or actions are needed to resolve national security risks.
“If CFIUS parties are unwilling or unable to fully address national security risks, CFIUS won’t hesitate to exercise the full scope of its authorities, including Presidential referrals, to address the risk,” said Assistant Secretary of the Treasury for Investment Security Paul Rosen. Rosen added that “CFIUS expects complete, accurate, and timely information, particularly when serious national security issues are on the line.”
MineOne did not file the transaction with CFIUS until after CFIUS’s non-notified team investigated the transaction as a result of a public tip. CFIUS’s non-notified function has been enhanced by authorities provided by Congress in FIRRMA and ongoing appropriations to support the Committee’s ability to identify and review non-notified transactions.
By law, CFIUS may enter into a negotiated mitigation agreement only if it is effective, verifiable, and monitorable based on a careful evaluation. In this case, the Committee determined that it would not be possible to enter into a negotiated agreement with MineOne that would sufficiently address the national security risks in an effective, verifiable, and monitorable manner, resulting in CFIUS’s referral to the President.
This decision is based on the facts and national security risks related to this transaction only. The CFIUS process focuses exclusively on identifying and addressing national security concerns arising from a covered transaction on a case-by-case basis, which reinforces CFIUS’s commitment to encouraging foreign investment while protecting national security.
View a copy of the President’s order.
CFIUS is an interagency committee authorized to review certain transactions involving foreign investment in the United States and certain real estate transactions by foreign persons, in order to determine the effect of such transactions on the national security of the United States. CFIUS is chaired by the Secretary of the Treasury and includes as members the Secretaries of State, Defense, Commerce, Energy, and Homeland Security, the Attorney General, the Director of the White House Office of Science and Technology Policy, and the U.S. Trade Representative. The Director of National Intelligence and the Secretary of Labor participate as non-voting, ex-officio members, and the Secretary of the Department of Agriculture is a member when a case involves elements of the agricultural industrial base that have implications for food security.
Treasury’s Office of Investment Security leads CFIUS’s efforts to identify transactions where no voluntary notice has been filed under section 721 of the Defense Production Act of 1950, as amended. If CFIUS determines that a non-notified transaction may be a covered transaction or covered real estate transaction and may raise national security considerations, the Committee may contact the transaction parties and request a CFIUS filing. Members of the public are encouraged to provide tips, referrals, or other relevant information to [email protected] regarding matters that may be within CFIUS’s purview, including foreign investment in, or an acquisition of, a U.S. business or real estate.
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As Prepared for Delivery
Thank you for joining me here today.
President Biden’s American Rescue Plan was enacted in March 2021, in the depths of the COVID pandemic. It provided much-needed support to states, cities, and counties. They used that support to address their citizens’ urgent needs: from expanding public health services to keeping people housed and businesses open. The American Rescue Plan’s support drove a historic recovery. But beyond that, along with the trifecta of legislation we’ve passed since—the Bipartisan Infrastructure Law, the CHIPS and Science Act, and the Inflation Reduction Act—the ARP is fueling investments that will boost our economy’s prospects over the medium- and long-term.
Today, Americans are seeing the economy expanding, a healthy labor market, and inflation that has come down significantly from its peak. That said, the President and I know that when you walk into a grocery store, or go to the doctor, or pay your rent, the costs are still too high. Addressing them is the President’s top economic priority, and we’ve taken action to lower key household expenses like energy and health care. As we look ahead, I believe that inflation will continue to come down while we maintain a strong economy.
Put simply, despite the challenges we’ve faced, we’ve emerged stronger and poised for future growth. I’m glad to have the opportunity to visit a project that exemplifies this. Investing in high-speed internet is an Administration-wide priority, with a goal of connecting every American by 2030. It’s a key example of our agenda to expand our economy’s capacity to produce in order to drive growth while increasing opportunity for people and places that haven’t had enough of it. We’re also saving Americans money right away.
So, let me talk about what we’ve done. The American Rescue Plan’s Capital Projects Fund allocated $10 billion to states, territories, and Tribal governments for internet and other critical capital projects. Virginia has chosen to spend its entire allocation on expanding high-speed internet infrastructure to reach the nearly 20 percent of locations that currently lack such access across the state.
In addition to that, localities have committed $8 billion from the ARP’s State and Local Fiscal Recovery Funds program to expansion of internet access. Here in Virginia, nearly $600 million has been allocated for this purpose.
And the Bipartisan Infrastructure Law’s Broadband Equity, Access, and Deployment Program, BEAD, provides $42.5 billion. This is the largest investment for internet in our history. It will mean an additional nearly $1.5 billion for high-speed internet here in Virginia.
Alongside federal funds, states, cities, and counties are stepping up as well. And the private sector, including Comcast, as we see right here, is seizing the opportunity to expand services. That’s why I see our efforts to close the digital divide as a prime example of how all levels of government, along with private companies and non-profits, can effectively work together. Spurring such partnerships has been at the heart of President Biden’s economic agenda to Invest in America.
We’re seeing the impacts. Investing in internet access creates jobs. Making high-speed internet a reality requires manufacturing fiber-optic cable and installing it across the country. This means new employment opportunities for thousands of Americans, including many well-paying union jobs.
But like with roads, bridges, and rail, the jobs created from building infrastructure are just one reason infrastructure matters. It’s also crucial to boosting productivity and growth.
We saw this most starkly in the pandemic, which revealed that investing in broadband was an urgent need. The pandemic forced education online, meaning kids across the country needed internet access to learn. Workplaces shuttered their office doors, meaning countless employees needed internet access to do their jobs. Doctor’s offices closed too, leaving many seniors and veterans dependent on internet access to get health care through telemedicine.
And while broadband may have been particularly critical during the pandemic when other options weren’t available, there’s very little you can do in a modern economy without a reliable, affordable internet connection. It’s not just key to completing homework and receiving health care. It’s key to individuals looking and applying for jobs. It’s key to businesses reaching new customers.
In brief, high-speed internet isn’t a luxury. It stopped being that a long time ago. Now, high-speed internet is an economic necessity. It’s crucial to participating in and benefitting from the economy—whether you’re 10 years old, or 30, or 60; no matter where you work and live.
And investing in broadband is at the heart of President Biden’s economic agenda because it matters not just for growth but also for expanding opportunity.
High-speed internet access in this country hasn’t been evenly distributed. In rural areas, around one third of households don’t have reliable high-speed access. That’s unacceptable. But it’s also an opportunity. It means that investing in high-speed internet can increase economic opportunity in places where potential exists but opportunity often hasn’t. These investments can be more impactful, yielding bigger economic gains.
Virginia is working to make good on the promise of expanding opportunity. This project has reached over 600 addresses: homes and businesses that had previously lacked high-speed internet.
And it’s not only reach that matters. As President Biden said and I want to emphasize today, “It’s not enough to just have Internet access. It needs to be affordable.” This has long been a challenge, in rural and urban areas.
We’ve designed our investments to address this, pulling all the policy levers we have to reduce costs. Through the Bipartisan Infrastructure Law’s Affordable Connectivity Program, or ACP, we’ve secured commitments from leading internet service providers, including Comcast, to offer high-speed, high-quality plans for no more than $30 per month. 23 million American households have taken advantage of the Program, including over 470,000 families in Virginia. That means significant savings, freeing up funds for families to put toward other needs.
ACP is now at risk because funding is running out this month. We know families are struggling with the high costs of key household expenses. We know how crucial the internet is. So I urge Congress to act to continue support for the Program.
I also want to address another urgent issue. The Senate may vote this week on a resolution that would overturn Treasury’s guidance on obligating State and Local Fiscal Recovery Funds. The guidance gave state, local, territorial, and Tribal governments the clarity and flexibility they needed to work toward completing projects, from expanding internet access to building affordable housing. If the guidance is overturned, critical projects—such as nearly 8,000 infrastructure projects across the country, including over 100 here in Virginia—may not have the funding they need. It’s crucial that localities can move these projects forward to improve the lives of Americans across the country.
Let me end by reemphasizing that what we’re seeing here, with this project, and throughout Virginia, is happening across the country. It’s changing the lives of individuals and families. And it’s an example of the Biden Administration’s broader agenda: to build on our historic recovery and drive inclusive growth for every American. Thank you for being here today and for supporting this work.
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