Exclusive: White House says McCarthy debt ceiling plan would kill thousands of green jobs in GOP districts

Sharma Sampatmal

WASHINGTON — House Speaker Kevin McCarthy’s debt ceiling plan to cut $4.5 trillion in spending would jeopardize more than 100,000 green manufacturing jobs – many in Republican congressional districts – announced as a result of incentives in President Joe Biden’s landmark climate law, the White House said Thursday.

The Republican bill would rescind parts of the Inflation Reduction Act, which Democrats in Congress passed last year. That includes eliminating green tax credits dangled to companies that build electric vehicles, charging stations, solar and wind facilities, EV batteries and other infrastructure for renewable energy.

McCarthy said his proposal would end Biden’s “green giveaways” as he unveiled cuts Wednesday that Republicans want as part of raising the debt ceiling by $1.5 trillion.

In a memo shared exclusively with USA TODAY, the White House zeroed in on eight Republican congressional districts – including polarizing Rep. Marjorie Taylor Greene’s rural Georgia district – where companies have announced manufacturing projects with aid from the green subsidies.

“‘Let me kill over 100,000 manufacturing jobs – mostly in red states – or I’ll force America to default on bills we racked up and trigger a recession,’ is the opposite of a compelling message,” Andrew Bates, White House deputy press secretary, said in the memo.

He said McCarthy’s bill “would take a two-by-four – on behalf of China – to America’s manufacturing resurgence.”

Clean energy companies have announced 142,016 new jobs in 31 states since Biden signed the Inflation Reduction Act in August, according to an updated analysis by Climate Power, which advocates for clean energy.

That includes 191 clean energy projects totaling $242.81 billion in new investments. Companies have announced 65 new battery manufacturing sites, 40 new or expanded electric vehicle manufacturing facilities and 34 wind and solar energy projects.

The majority of projects are in Arizona, California, Georgia, Michigan, New York, North Carolina, Ohio, South Carolina, Tennessee, Texas – a mix of purple, red and blue states. Bloomberg reported most of the projects are in traditionally conservatives states.

Greene’s northern Georgia district has a $2.5 billion solar manufacturing facility planned by Qcells, billed as the largest solar project in U.S. history when it was announced in February. It’s projected to create 2,500 jobs.

The memo also singled out other Congress members with green projects planned in their districts:

Rep, Barry Loudermilk, R-Ga., Qcells: $2.5 billion solar manufacturing, Hyundai/SK: $4.5 billion battery manufacturing
Rep. Drew Ferguson, R-Ga.: Freyr/Koch: $2.6 billion battery manufacturing
Rep. Joe Wilson, R-S.C.,: Scout Motors: $2 billion EV manufacturing
Rep. Ralph Norman, R-S.C.: Albemarle: $1.3 billion lithium processing
Rep. Mark Green, R-Tenn.: LG: $3.2 billion battery material processing
Rep. Mike Carey, R-Ohio: Honda/LG: $3.5 billion battery manufacturing
Rep. Andy Biggs, R-Ariz.: LG: $5.5 billion battery manufacturing

“Will Rep. Marjorie Taylor Green vote to eliminate the investments helping to create 2,500 solar manufacturing jobs in her district?” Bates said. “Will Rep. Joe Wilson vote to rip tax credits away from a $2 billion EV manufacturing investment in his district?”

Biden is refusing to negotiate spending cuts pushed by Republicans as the White House seeks an increase to the debt ceiling without conditions. Failure to raise the debt limit would mean the U.S. could not meet its financial obligations, leading to a potential default and economic collapse.

The White House is ratcheting up attacks on Republicans’ proposed cuts in hopes that enough GOP lawmakers will back off their demands for Congress to take action on the debt ceiling without conditions.

As he prepares to announce an expected 2024 reelection bid, Biden has made his push to expand the domestic production of electric vehicles and microchips a central piece of his message to working-class Americans.

In a speech from a Maryland union hall Wednesday, Biden blasted McCarthy’s plan as part of a “MAGA economic agenda” that values the rich over workers.