Speaking alongside Secretary of Transportation Pete Buttigieg on the day of the announcement, the president addressed the changes the administration has made to support the supply chain.
“That’s why … I signed an executive order bringing supply chains home to get goods moving again.”
To allow more investment in the production of important medical items made in the United States—such as medications and medical items seen as essential for national defense—the president plans to expand health permissions for the Department of Health and Human Services (HHS), through the Defense Production Act, which dates back to the Cold War era.
“I’m proud to announce that I'll be invoking what’s known as the Defense Production Act, to boost production of essential medicines in America by American workers,” President Biden said.
“We’re gonna help ensure American families have reliable access to medicines they need.”
The change for HHS is one of several initiatives the Biden administration introduced on Nov. 27 as part of the newly established White House Council on Supply Chain Resilience.
The White House said in its Fact Sheet that HHS has set aside about $35 million to spend on the production of key starting materials for sterile injectable medicines in the United States.
The department will also name a new Supply Chain Resilience and Shortage Coordinator whose job will be to work on adding stability to the supply lines for medical products and essential foods to deal with potential shortages that could follow a breakdown of the supply chain system.
The administration also announced an upcoming report from the Department of Defense (DOD) that will focus on the resilience of the pharmaceutical supply chain with the objective of diminishing dependence on high-risk foreign suppliers.
President Biden, a Democrat who is seeking reelection in 2024, continued his attempt to demonstrate to voters that he is working to fix inflation and other widespread concerns about the health of the economy.
“First, we’re doubling down on our work at home,” President Biden said in his announcement.
“Starting right here, right now, with the launch of a new council on supply chain resilience. I’m charging this group to ensure that our supply chains remain secure, diversified, [and] resilient in the future.”
In total, the White House announced more than 30 new actions during the first session of the Supply Chain Council.
The fact sheet also included President Biden’s long-term plan to launch a supply chain review by the council and a smart manufacturing plan led by the Department of Energy.
Internationally, the administration reported attempting to engage with partners to enhance early warning systems for supply chain disruptions.
The White House announced agreements with the European Union, Japan, the Republic of Korea, Canada, and Mexico in an attempt to support a plan for global cooperation in critical sectors.
“We’re doubling down on our work with global partners,” the president said of his plan to create secure channels for goods to travel.
“Two weeks ago, I signed the first of its kind supply chain agreement with 13 countries in the Indo-Pacific. This program is going to help us identify supply chain bottlenecks before they become the kind of full-scale disruptions we saw during the pandemic.”
