U.S. Democratic Congressman Ro Khanna has introduced the Modern Steel Act, a transformative bill designed to revitalize the American steel industry. The legislation proposes the construction of new steel mills in deindustrialized cities, with the goal of bringing next-generation steel production back to the United States.
The Modern Steel Act aims to strengthen domestic manufacturing, create well-paying jobs, and increase U.S. industrial competitiveness globally. Khanna unveiled the bill in Johnstown, Pennsylvania, an area with a rich history of iron and steel production that has been significantly impacted by deindustrialization.
Key features of the bill include partnering with the steel industry and workers to build new modern facilities that produce iron or steel with near-zero emissions using state-of-the-art technologies such as direct hydrogen reduction. The act also proposes providing $10 billion in cost-share grants, low-interest loans, and other financing to support these initiatives.
The legislation has garnered support from various stakeholders, including the United Steel Workers, Cleveland-Cliffs steel producer, and the American Iron and Steel Institute (AISI). Kevin Dempsey, President and CEO of AISI, expressed support for the bill, stating that it would create a strong public-private partnership to provide tax incentives for continued investment in breakthrough technologies and innovation in the U.S. steel industry.
The Modern Steel Act represents a significant step towards modernizing the American steel industry, with a focus on creating jobs, advancing innovation, and fostering economic growth in areas that have been hit hard by deindustrialization.
