Stein and Xu: Bringing manufacturing jobs back to heartland

Published: Sunday, September 14, 2025 at 7:46 am

Reindustrialization: A Bipartisan Push to Revive American Manufacturing

A renewed push to revitalize American manufacturing is gaining momentum, with both sides of the political spectrum calling for policy changes to modernize industry and bring jobs back to the heartland. The focus is on reindustrialization, a concept that has been championed by President Trump, who worked with Congress to implement policies through the "One Big Beautiful Bill Act" (OBBBA).

The OBBBA proposes several key reforms aimed at achieving this goal. First, it permanently extends provisions from the 2017 Tax Cuts and Jobs Act, including 100% bonus depreciation. This allows businesses to immediately deduct the full cost of qualifying capital investments, such as manufacturing machinery and equipment. This aims to eliminate tax penalties on capital-intensive investments, encouraging domestic manufacturers to invest in new equipment and expand production. The bill also permanently establishes full and immediate expensing for research and development costs, further incentivizing domestic investment and innovation.

Another significant reform within OBBBA allows businesses to immediately deduct the cost of constructing new factories and structures used to produce or refine American-made goods. Previously, these costs were recovered over a lengthy depreciation schedule, which was seen as a barrier to long-term domestic investment. This reform aims to remove tax penalties on building new factories in the United States.

Furthermore, the OBBBA addresses permitting processes, specifically reforming the National Environmental Policy Act (NEPA). The bill proposes that project developers can obtain expedited environmental reviews by paying a fee. This streamlining of the NEPA process is intended to accelerate the construction of factories, mines, oil and gas wells, and power plants, which are seen as essential for reindustrialization.

Finally, the OBBBA seeks to address the skilled labor shortage by expanding 529 educational savings accounts to cover costs associated with a broader range of apprenticeship programs and trade training. This aims to ensure that firms have access to a skilled workforce to operate the machinery and equipment needed for a revitalized manufacturing sector.

BNN's Perspective:

While the goals of reindustrialization are laudable, the success of these policies will depend on careful implementation and ongoing evaluation. Striking a balance between economic growth, environmental concerns, and workforce development will be crucial. A moderate approach that considers the long-term implications of these reforms is essential for ensuring sustainable and equitable growth.

Keywords: reindustrialization, manufacturing, jobs, OBBBA, tax reform, depreciation, investment, NEPA, permitting, apprenticeships, economic policy, American industry

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