A new bipartisan bill introduced by Sens. Tammy Baldwin (D-WI) and Bill Cassidy (R-LA) aims to provide financial support to communities negatively impacted by foreign trade practices. Dubbed the “Resilient Communities Act,” the legislation would establish a Commerce Department program to distribute grants to local governments representing areas facing economic decline due to foreign dumping or subsidies. The grants would fund projects to encourage domestic manufacturing growth and employment, or general economic development initiatives.
Grants would come from an existing revenue stream, using import duties levied against foreign companies who utilize unfair pricing strategies. Baldwin and Cassidy pointed specifically to harm caused to American companies from dumped or subsidized Chinese imports.
Under the proposed bill, grants could be used for various economic purposes, like infrastructure investments, healthcare access improvements, environmental compliance, broadband expansion, and more. Communities with idled factories or significant job losses from import competition would receive priority.
The bill comes as American industries from steel and aluminum to seafood have suffered from foreign dumping practices. Supporters say it represents a sensible way to reinvest unfair trading penalties back into affected areas, helping diversify local economies against trade shocks.
The bill is supported by the United Steelworkers, the Alliance for American Manufacturing, and the American Shrimp Processors Association. Critics, however, say the Resilient Communities Act too closely resembles the so-called “Byrd Amendment” from 2000, which was successfully challenged at the World Trade Organization (WTO). That law distributed import tariff revenue directly to companies impacted by foreign dumping and subsidies.
Call Mahdavi, Bacon, Halfhill & Young, PLLC to discuss whether your business could benefit from this recent law change. Our experienced business attorneys can recommend next steps.