The Biden administration has unveiled over 30 new initiatives to reinforce domestic and global supply chains—aiming to curb inflation and beef up America’s clean energy ecosystem.
While these measures were presented as a win for consumers in the president’s remarks, the new Supply Chain Resilience Council is actually part of a broader strategy to create more opportunities for businesses in emerging industries.
Of the 30 measures, 11 focus directly on strengthening the domestic renewable energy supply. These include steps to make the U.S. power grid more resilient for the long term, as well as new funding for business development programs to spark homegrown innovation.
Grant programs to accelerate clean energy innovation
As part of the announcement, the Department of Energy (DOE) has announced over $275 million in grant selections through its Advanced Energy Manufacturing and Recycling Grant Program. This funding will help repurpose former coal facilities for clean energy uses, including the production of critical materials for batteries and electric vehicles.
The DOE is also dedicating $10 million to a Critical Material Accelerator and offering a $5.6 million prize to “develop circular clean energy supply chains.”
These grant programs build on investments made in June 2022 under the Defense Production Act, which targeted five key technologies for future economic growth: (1) solar; (2) transformers and electric grid components; (3) heat pumps; (4) insulation; and (5) electrolyzers, fuel cells, and platinum group metals.
Similarly, the USDA is investing $196 million in domestic food supply chains to create “more opportunities for farmers and entrepreneurs in 37 states and Puerto Rico,” according to the briefing.
This program also aligns with recent regional economic investment initiatives announced by the Biden Administration as part of the CHIPS and Science Act. Called the Regional Technology and Innovation Hub Program, the announcement highlights the need for increased investment from both government and private sector in businesses outside the usual major U.S. cities.
Hackathons, check-ins, and more government oversight
The United States Geological Survey (USGS), the Defense Advanced Research Projects Agency (DARPA), and the Advanced Research Projects Agency-Energy (ARPA-E) will kick off a series of hackathons starting in February 2024. The goal: develop new AI-driven methods to assess America’s critical mineral resources. This builds on a similar prize challenge hosted by DARPA in 2022 to encourage innovation in tapping the nation’s natural resources for renewable energy production.
At the core of these announcements is the new Supply Chain Resilience Center (SCRC), launched within the Department of Homeland Security (DHS). Its mission: provide stronger oversight and drive responsible innovation across the clean energy economy. This includes conducting supply chain reviews every four years (with the first due by December 2024) and developing a national Smart Manufacturing Plan in partnership with the DOE’s Office of Energy Efficiency and Renewable Energy (EERE).
What does this mean for startups?
Despite this major push for new technology development in the U.S., these measures don’t directly address long-standing issues with the nation’s R&D tax credit system—especially Section 174 rules on capitalization and amortization, which have sharply limited many startups’ ability to expense key R&D costs.
However, these new initiatives do lay the foundation for more innovative startups to seize opportunities and create breakthrough solutions with government support.
For example, as more funding is directed toward phasing out legacy, non-renewable energy systems, founders have new chances to partner with government and institutions to develop products that could launch entirely new industries.
While public-private partnerships—combining government funding, private capital, and institutional resources—are essential for strengthening local tech ecosystems, individual entrepreneurs should also adopt a similar approach to funding their ventures.
That means tapping into a mix of funding sources so you can drive growth, keep equity in your business, and support your R&D efforts.
At Boast, we’ve helped thousands of startups across North America secure non-dilutive funding to power their product roadmaps and boost their R&D. Our platform brings together key financial and project tracking tools in one place, giving you the insights you need to optimize your strategy and maximize the impact of your team’s innovation.
To learn more about the R&D tax credits available from the U.S. government—and how you can use them to extend your product runway—download our Guide:
Contact an expert today to discover how Boast’s unique approach can help you optimize R&D and maximize non-dilutive funding.
