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New York Facility Will be Key Part of the NSTC and Expected to Drive Innovation in EUV Technology and Strengthen U.S. Semiconductor Leadersh

FOR IMMEDIATE RELEASE  Thursday, October 31, 2024 Media Contact: Office of Public Affairs, publicaffairs@doc.gov Biden-Harris Administration Announces NY CREATES’ Albany NanoTech Complex as the first CHIPS for America R&D Flagship Facility and Planned Site for the estimated $825 Million CHIPS for America EUV Accelerator New York Facility Will be Key Part of the NSTC and Expected to Drive Innovation in EUV Technology and Strengthen U.S. Semiconductor Leadership October 31, 2024 – Washington, D.C. – Today, the Department of Commerce and Natcast, the operator of the National Semiconductor Technology Center (NSTC), announced the expected location for the first CHIPS for America research and development (R&D) flagship facility. The CHIPS for America Extreme Ultraviolet (EUV) Accelerator, an NSTC facility (EUV Accelerator), is expected to operate within NY CREATES’ Albany NanoTech Complex in Albany, New York, supported by a proposed federal investment of an estimated $825 million. The EUV Accelerator will focus on advancing state of the art EUV technology and the R&D that relies on it. As a key part of President Biden’s Investing in America agenda, CHIPS for America is driven by the growing need to bolster the U.S. semiconductor supply chain, accelerate U.S. leading-edge R&D, and create good quality jobs around the country. This proposed facility will bring together NSTC members from across the ecosystem to accelerate semiconductor R&D and innovation by providing NSTC members access to technologies, capabilities, and critical resources. “With this first proposed flagship facility, CHIPS for America is providing access to cutting-edge research and tools to the NSTC and its launch represents a key milestone in ensuring the United States remains a global leader in innovation and semiconductor research and development,” said Secretary of Commerce Gina Raimondo. “The research and development component of the CHIPS and Science Act is fundamental to our long-term national security and ensuring the U.S. remains the most technologically competitive place on earth. Thanks to President Biden and Vice President Harris, we are not just producing the world’s most advanced semiconductors; we are building a resilient ecosystem that will power everything from smartphones to advanced AI, safeguarding U.S. national security and keeping America competitive for decades to come.” "This $825 million investment from the Biden-Harris Administration will cement Albany's leadership as a world class hub for entrepreneurs, researchers, and engineers in semiconductor innovation and R&D” said National Economic Advisor Lael Brainard.  EUV Lithography is essential for manufacturing smaller, faster, and more efficient microchips. As the semiconductor industry pushes the limits of Moore’s Law, EUV lithography has emerged as a critical technology to enable the high-volume production of transistors beyond 7nm, previously unattainable. As the NSTC develops capabilities and programs, access to EUV lithography R&D is essential to meet its three primary goals 1) extend U.S. technology leadership, 2) reduce the time and cost to prototype, and 3) build and sustain a semiconductor workforce ecosystem. “With two decades of proven experience fostering effective public-private partnerships and more than $25 billion invested in semiconductor R&D, manufacturing, and workforce development since its founding, NY CREATES is uniquely positioned to support the NSTC’s mission to provide an open environment to accelerate research, reduce time to commercialization, and grow a sustainable semiconductor ecosystem in the U.S.,” said Under Secretary of Commerce for Standards and Technology and National Institute of Standards and Technology Director Laurie E. Locascio. “The CHIPS for America EUV Accelerator underscores our commitment to developing and advancing next-generation semiconductor technologies here in the U.S.,” said Deirdre Hanford, Natcast CEO. “Through this collaboration with NY CREATES, Natcast and NSTC members will have access to essential EUV lithography tools and processes to facilitate a wider range of research and accelerate commercialization of the technologies of tomorrow.” Natcast and NY CREATES, a non-profit advancing semiconductor R&D and workforce development that operates the Albany NanoTech Complex, expect to establish the EUV Accelerator for NSTC members to conduct next-generation semiconductor research and development activities. The EUV Accelerator, which will have initial operations available in 2025, will allow Natcast, NY CREATES, and NSTC members to work collaboratively to conduct research and development activities essential to enabling faster commercialization of innovative semiconductor technology and strengthening the U.S.’s technology leadership. Key capabilities at the EUV Accelerator are expected to include: Access to cutting-edge EUV lithography tools and next generation R&D capabilities, including high numerical aperture (NA) EUV systems, with standard NA EUV expected by 2025 and High NA EUV in 2026. Convening and spurring collaboration with industry, academic and government partners to advance technological innovation. Dedicated NSTC on-site offices to support Natcast and NSTC member researchers. Support for programs that provide, foster, and grow a talented workforce. Efforts to grow NSTC membership and engagement while fostering an open, collaborative R&D environment with all NSTC facilities. The CHIPS for America NSTC Prototyping and National Advanced Packaging Manufacturing Program (NAPMP) Advanced Packaging Piloting Facility, and CHIPS for America Administrative and Design Facility are still forthcoming. The Department and Natcast expect to announce information in the coming months about the process for selecting affiliated technical centers. Natcast and NY CREATES have signed a nonbinding Memorandum of Understanding (MOU) and expect the final contract to have an expected term of 10 years. The final contract is subject to due diligence, continued negotiations, and refinement of certain terms. The terms contained in the final contract may differ from the terms of the MOU being announced today. Learn more about the CHIPS for America R&D facilities here. Learn more about the NSTC, membership, and how to join, at natcast.org/NSTCmembership. Read the NSTC Strategic Plan here. FOR IMMEDIATE RELEASE  Wednesday, October 30, 2024 Media Contact: Office of Public Affairs, publicaffairs@doc.gov Commerce Marks One-Year Anniversary of Historic Biden-Harris Administration Executive Order on AI Leading up to the inaugural convening of the International Network of AI Safety Institutes, Commerce Department highlights implementation of President Biden’s historic AI Executive Order, which tasked the Department with numerous responsibilities to spur the safe development, deployment and adoption of responsible AI.  Today, U.S. Secretary of Commerce Gina Raimondo marked the one-year anniversary of President Biden and Vice President Harris’ historic Executive Order (EO) on the Safe, Secure and Trustworthy Development of AI by reflecting on the progress made by the Commerce Department to implement significant pieces of the landmark EO.  “President Biden instructed me and leaders across the Administration to pull every lever to keep pace with rapid advancements in AI to mitigate the risks so we can harness the benefits. Over the last year, that is precisely what we’ve done at Commerce, building a national AI safety institute, collaborating with leaders in industry, academia, and civil society, and working with partners and allies around the world to write the rules of the road on AI,” said Secretary of Commerce Gina Raimondo. “We’ve made tremendous progress over the last year, but we’re clear-eyed on the work that remains. We’re going to continue charging ahead to fulfill the goals of this historic EO to spur the safe development and deployment of AI in our societies.”  Since President Biden signed the AI EO in October 2023, the Department of Commerce has led implementation of significant policy priorities. In the last year, the Department has established, staffed and stood up the U.S. AI Safety Institute (U.S. AISI); created a consortium dedicated to AI safety compromised of approximately 280 members; released new guidance and software to help improve the safety, security and trustworthiness of artificial intelligence systems;  signed agreements for formal collaboration on AI safety research, testing, and evaluation with leading AI companies; and completed pre-deployment testing of a new advanced model, among other action items.  Just last week, the Biden-Harris Administration announced the release of the National Security Memorandum (NSM) on AI. The NSM is designed to galvanize federal government adoption of AI to advance the national security mission. Among other key announcements, the NSM designates the U.S. AI Safety Institute, housed within Commerce’s National Institute of Standards and Technology (NIST), as the center of the whole-of-government approach to advanced AI model testing and evaluation. It empowers the U.S. AISI to collaborate with the national security and intelligence community to ensure we’re working in lock step to drive the safe, secure, and trustworthy development and use of AI.  A White House Fact Sheet underscoring AI accomplishments in the year since the Biden-Harris Administration’s historic EO is available here.  Key Commerce EO Priorities Implemented Include:  Defense Production Act authorities to compel developers of the most powerful AI systems to report vital information, especially safety test results, to the U.S. government. These companies have notified the Department of Commerce about the results of their red-team safety tests, their plans to train powerful models, and large computing clusters they possess capable of such training. Last month, the Department of Commerce proposed a rule to require the reporting of this information on a quarterly basis. Led the way on AI safety testing and evaluations to advance the science of AI safety. The U.S. AISI at the Department of Commerce has begun pre-deployment testing of major new AI models through recently signed agreements with two leading AI developers.  Developed guidance and tools for managing AI risk. The U.S. AISI and NIST at the Department of Commerce published voluntary frameworks for managing risks related to generative AI and dual-use foundation models, and earlier this month, AISI released a Request for Information on the responsible development and use of AI models for chemical and biological sciences. Issued a first-ever National Security Memorandum (NSM) on AI. The NSM directs concrete steps by federal agencies to ensure the United States leads the world’s development of safe, secure and trustworthy AI; to enable agencies to harness cutting-edge AI for national security objectives, while protecting human rights and democratic values; and to advance international consensus and governance on AI. This essential document designates the AI Safety Institute as the center of the whole-of-government approach to advanced AI model testing and will guide rapid and responsible AI adoption by the Department of Defense and Intelligence Community.  Identified measures—including approaches for labeling content and improving transparency—to reduce the risks posed by AI-generated content. The Department of Commerce submitted to the White House a final report on science-backed standards and techniques for addressing these risks, while NIST has launched a challenge to develop methods for detecting AI-generated content.  Released a report on the potential benefits, risks, and implications of dual-use foundation models for which the model weights are widely available, including related policy recommendations. The Department of Commerce’s report draws on extensive outreach to experts and stakeholders, including hundreds of public comments submitted on this topic. Announced a competition for up to $100 million to support the application of AI-enabled autonomous experimentation to accelerate research into – and delivery of – targeted, industry –relevant, sustainable semiconductor materials and processes.  Published guidance addressing vital questions at the intersection of AI and intellectual property. To advance innovation the U.S. Patent and Trademark Office (USPTO) has released guidance documents addressing the patentability of AI-assisted inventions, on the subject matter eligibility of patent claims involving inventions related to AI technology, and on the use of AI tools in pursuing patent and trademark applications. Engaged foreign leaders on strengthening international rules and norms for AI, including at the 2023 UK AI Safety Summit, where Vice President Harris and Secretary Raimondo participated. U.S. AISI Director Elizabeth Kelly later participated in the AI Seoul Summit in May 2024. In the United Kingdom, Vice President Harris and Secretary Raimondo unveiled a series of U.S. initiatives to advance the safe and responsible use of AI, including the establishment of AISI at the Department of Commerce. Announced a global network of AI Safety Institutes and other government-backed scientific offices to advance AI safety at a technical level. This network, which will launch in November at the inaugural network convening in San Francisco, will accelerate critical information exchange and drive toward common or compatible safety evaluations and policies. Developed comprehensive plans for U.S. engagement on global AI standards and AI-related critical infrastructure topics. NIST and DHS, respectively, will report on priority actions taken per these plans in 90 days. Additionally, the United States has launched a global network of AI Safety Institutes and other government-backed scientific offices to advance AI safety at a technical level.  Please join us to learn about business opportunities in Vietnam. This webinar will provide you with in-depth insights on current market opportunities. AGENDA: Vietnam’s Defense Market U.S. Embassy - Commercial, and Defense Officers Market Overview and Vietnam International Defense Expo Defense Industry Insight and Opportunities Lessons Learned from U.S. Defense Firms in Vietnam Boeing Defense, Space & Security Procurement Process and Market Entry Strategies Retired Major, former Executive officer of VAXUCO, Ministry of National Defense VIETNAM MARKET HIGHLIGHT: In 2023, the United States and Vietnam elevated their relationship to a Comprehensive Strategic Partnership, marking a significant milestone in diplomatic and defense cooperation. This upgrade opens the door to deeper defense collaboration and expanded commercial opportunities for U.S. defense firms seeking to support Vietnam’s defense modernization efforts. Vietnam's defense budget has shown consistent growth over the past decade, reflecting the country’s commitment to enhancing its military capabilities amid rising regional security concerns. In 2023, Vietnam’s defense budget was an estimated $7 billion, and it is projected to continue growing at 5.6% annually, driven by the need to modernize key military assets and maintain security in the South China Sea. As Vietnam pivots away from its historic reliance on Russia and pursues a diversification strategy, opportunities for international defense firms are expanding, especially in key fields such Naval and Air Defense, Cybersecurity and Electronic Warfare, Missile Defense, and Artillery. Prospect Areas Include: UAV and C-UAV Radar Cyber Defense Night Vision Register now... UAE space sector opportunities - SpaceNxt Business Mission to the UAE The U.S. Commercial Service is pleased to invite you for a preview of the U.S. Chamber's first-ever space business mission: SpaceNxt Business Mission to the UAE - a U.S. Department of Commerce Certified Trade Mission. During this virtual information session, representatives from the U.S. Chamber, U.S. Embassy Abu Dhabi, and UAE Embassy in Washington will share details about the agenda, Abu Dhabi Space Debate, and provide an overview of the space ecosystem in the UAE and the relevant stakeholders across the government and private sector. Participants will have the opportunity to ask questions during the moderated discussion. Speakers Erik Kish, Deputy Senior Commercial Officer U.S. Embassy - Abu Dhabi Steve Lutes, Vice President, Middle East U.S. Chamber of Commerce John Neal, Vice President, Space Policy U.S. Chamber of Commerce Ahmad AlSawalhi, Director of Aerospace Affairs & Trade Outreach UAE Embassy in Washington Register Now...

SEC Announces New Members of Small Business Capital Formation Advisory Committee 10/30/2024 10:57 AM EDT The Securities and Exchange Commission today announced four new members of the Small Business Capital Formation Advisory Committee. The new members were appointed to four-year terms and will join the 14 current

U.S. EQUAL EMPLOYMENT OPPORTUNITY COMMISSION FOR IMMEDIATE RELEASE Oct. 30, 2024 EEOC Partners With TEROs to Support Tribal Members’ Employee Rights Agency Releases New Television and Radio Campaign to Address Tribal Employment Discrimination and Harassment EEOC and TERO partnership logo WASHINGTON – Partnering with Tribal Employment Rights Offices (TERO) directors from the Nez Perce Tribe and Lummi Nation, the U.S. Equal Employment Opportunity Commission (EEOC) announced today the release of new public service announcements in full-length, 60 second, 30 second, and 15 second video and downloadable audio formats to help educate Native Americans and Alaska Natives about their employment rights. Most workers and job seekers in the U.S., including Native Americans and Alaska Natives, are covered by federal anti-discrimination laws which forbid discrimination, harassment and retaliation at work on the basis of race, color, religion, national origin, sex (including pregnancy, childbirth, or related medical conditions, sexual orientation, and gender identity), age, disability and genetic information. “Protecting Native Americans and Alaska Natives and their communities from unlawful discrimination is enshrined in the EEOC’s Strategic Enforcement Plan,” said EEOC Chair Charlotte A. Burrows. “Outreach is a crucial part of this goal, for which this PSA is a significant, but by no means solitary, endeavor.”  “The EEOC has partnered with TEROs since 1976 to help advance the Title VII Indian preference requirements on Tribal lands and to help inform Tribal members of their rights to equal employment,” said Cheryl Mabry, director of the EEOC’s Tribal Programs. “We hope these new resources are useful and will continue to help spread the word about rights in the workplace.” The EEOC works with Tribal Employment Rights Offices (TEROs) and other Tribal organizations to address employment discrimination. Members of the public do not need a personal lawyer to contact the EEOC and there is no fee for services. For more information, call 800-669-4000 (ASL videophone 844-234-5122) or visit www.eeoc.gov to locate the nearest EEOC office. The EEOC is committed to working with Native American and Alaska Native tribes in a manner that respects Tribal self-government and sovereignty, honors Tribal treaty and other rights, and meets the Federal Government’s Tribal trust responsibilities. Learn more about EEOC and Tribal Programs at www.eeoc.gov/tribal-programs. The EEOC advances opportunity in the workplace by enforcing federal laws prohibiting employment discrimination. More information is available at www.eeoc.gov. Stay connected with the latest EEOC news by subscribing to our email updates. ### Please contact newsroom@eeoc.gov for media inquiries. Contact: Office of Communications & Legislative Affairs 131 M Street, N.E. Washington, D.C. 20507 newsroom@eeoc.gov ASL videophone 844-234-5122 FATF Identifies Jurisdictions with Anti-Money Laundering, Combating the Financing of Terrorism, and Counter-Proliferation Finance Deficiencies The Financial Crimes Enforcement Network is informing U.S. financial institutions that the Financial Action Task Force (FATF), an intergovernmental body that establishes international standards for anti-money laundering, countering the financing of terrorism, and countering the financing of proliferation of weapons of mass destruction (AML/CFT/CPF), updated its lists of jurisdictions with strategic AML/CFT/CPF deficiencies at the conclusion of its plenary meeting this month. The FATF added Algeria, Angola, Côte d’Ivoire, and Lebanon to its list of Jurisdictions Under Increased Monitoring and removed Senegal from the list. The FATF’s list of High-Risk Jurisdictions Subject to a Call for Action remains the same, with Iran, the Democratic People’s Republic of Korea (DPRK), and Burma subject to calls for action. Iran and DPRK are still subject to the FATF’s countermeasures, while Burma is still subject to the application of enhanced due diligence, but not countermeasures. News Release: https://www.fincen.gov/news/news-releases/financial-action-task-force-identifies-jurisdictions-anti-money-laundering-1 We're resurrecting a few of our past reports with Halloween-like happenings in tax administration. Keep reading if you dare...  Ghostbusters  Ghosts usually stick to haunted houses. But there's a type that haunts tax collectors and investigators at the IRS. "Ghost Employers" are businesses that collect employment taxes. But when it comes time to filing employment tax returns, they disappear. We reported that the IRS's Criminal Investigation function worked 33 Ghost Employer cases that led to a successful prosecution with an average restitution amount of $1.3 million. Read what else our report revealed.    Creepy Crawlers  One place you can find them? A cave. We went in one – ok, not a real one – but a man-made underground complex in Missouri the IRS uses to store certain tax forms.  We visited the cave to follow-up on employees' safety concerns and found some weren't addressed. For example, covering wasn’t installed in the parking lot to protect cars and people from falling rocks and debris. Despite not meeting safety standards, we found ladders are used sometimes to retrieve boxes that can weigh up to 50 pounds from shelves as high as 13 feet. In fact, at the time of our visit, three of the five IRS employees were on light duty because of workplace injuries. Read what else we discovered when we went spelunking.    The Living Dead  The IRS locks a deceased taxpayer’s account to prevent someone from using their personal information to file a fraudulent tax return. But if an account is erroneously locked, legitimate taxpayers cannot file a tax return and receive a refund. We identified more than 20,000 taxpayers whose accounts were incorrectly locked as deceased. To fix this issue, the IRS implemented new programming to annually reconcile date of death information with the Social Security Administration. Unlock the full report.     Email or social media hacked? Here’s what to do By Alvaro Puig Hackers target your email and social media accounts to steal your personal information. Like your username and password, bank or credit card account numbers, or Social Security number. If they get it, they use it to commit identity theft, spread malware, or scam other people. So, what are signs that someone hacked your account, and how can you recover a stolen account? Read more > Three ways scammers try to steal your money By Alvaro Puig We recently shared advice to help you safeguard the personal information in your accounts, on your computer, and on your phone to protect it from identity theft. But scammers aren’t just after your data. They want your hard-earned cash, too. Here are some common scams to watch out for. Read more >  The Week Ahead: Happy Halloween!  Halloween is this Thursday, October 31!  Check out our Facts for Features page and trick-or-treat yourself to some sweet and spooky statistics.  Learn More  Related Content  Statistics in Schools: Halloween Fun Facts  Data Release  2022 Census of Governments – Finance Component On Thursday, October 31, the Census Bureau will release data from the 2022 Census of Governments – Finance Component. These data show revenues, expenditures and debt by level of government (state, local, and state and local combined). The statistics are organized by state. Several content changes in the 2022 Census of Governments will be documented with the release.  More Info  Holidays and Observances  Cybersecurity Awareness Month, Computer Learning Month, and American Pharmacists Month conclude this month. November is Native American Heritage Month.  Election Day is November 5.   National STEM Day is November 8.  Veterans Day is November 11.  Coming Soon The Census Bureau's National Advisory Committee will meet November 7-8.  Join us for presentations on the implementation of the updated race/ethnicity standards, feedback on the 2030 Census race/ethnicity coding improvement project, and more. Learn More  In Case You Missed It The 2024 Major League Baseball championship is pitting teams from the nation’s two most populous cities against one another – New York and Los Angeles.  As East meets West, explore Census Bureau data and fun facts related to each metro area on America Counts.  Read More  Happy Birthday, Nevada, North Dakota, and South Dakota! On Thursday, October 31, Nevada will celebrate its 160th anniversary. North Dakota and South Dakota will celebrate their 135th anniversaries on Saturday, November 2. You May Be Interested In QuickFacts: Nevada, North Dakota and South Dakota   Statistics in Schools: State Facts for Students Help us spread the word about Census Bureau data! Share this on social media or forward it to a friend. Share This Upcoming Census Academy Webinars November 13: The Labor Market Impact of Shareholder Power: Worker-Level Evidence November 20: Dynamics of Business Establishments and Firms: A Complement to the Dynamics of Workers More Webinars  Economic Indicators  Tuesday: Advance Economic Indicators Report (International Trade, Retail, and Wholesale) Tuesday: Housing Vacancies and Homeownership Friday: Construction Spending (Construction Put in Place) Economic Indicators About the Census Bureau We serve as the nation’s leading provider of quality data about its people and economy. The Census Bureau is the federal government's largest statistical agency. As the world’s premier statistical agency, we are dedicated to making our nation a better place. Policy-makers, businesses, and the public use our data to make informed decisions. Actions Were Not Taken to Timely Strengthen Practitioner Priority Service Telephone Line Authentication Controls   What is the Practitioner Priority Service (PPS) line? It's a dedicated phone line that authorized tax practitioners can use to get help for their clients. For example, tax practitioners can call the PPS line to request a client's tax return transcripts.    Why did we do this audit? IRS functional areas and TIGTA’s Office of Investigations alerted IRS management about a fraudulent scheme involving the PPS line. However, the IRS did little to stop it. We conducted an evaluation to assess the policies and procedures implemented by the IRS to stop fraudsters from exploiting the PPS line.   What did we find? Fraudsters used the PPS line to file more than 4,800 tax returns claiming nearly $462 million in refunds between August 2023 and April 2024. The IRS was able to detect and stop more than 4,200 of these claims. However, the IRS failed to prevent 574 returns, resulting in estimated losses of more than $47 million. The IRS was slow to stop the PPS fraud despite other IRS functional areas identifying it back in August 2021. The IRS did not put an adequate authentication control in place to combat identify theft and protect taxpayers' personal information involving the PPS line until April 2024. Read the full report Excerpts From Secretary of the Treasury Janet L. Yellen’s Remarks at the American Bankers Association Annual Convention 10/29/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 29, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov Excerpts From Secretary of the Treasury Janet L. Yellen’s Remarks at the American Bankers Association Annual Convention WASHINGTON – Today, at 2:30 PM, Secretary of the Treasury Janet L. Yellen will deliver remarks at the American Bankers Association Annual Convention in New York, New York. A livestream of Secretary Yellen’s remarks will be available here. The following are excerpts from the Secretary’s remarks as prepared for delivery: “When President Biden and Vice President Harris took office, thousands of Americans were dying each day from COVID-19. The unemployment rate was 50 percent higher than it is now. Today, by contrast, the U.S. economy is strong. We’ve seen robust economic growth, bolstered by solid consumer spending and business investment, even while inflation has come down significantly from its peak. The U.S. labor market remains healthy, with the unemployment rate near historic lows and the prime-age labor-force participation rate near all-time highs. While there is more to do to bring down the cost of living, wages have risen faster than prices, which means that the typical American can afford more goods and services than before the pandemic. And Americans are starting new businesses at a record rate, reflecting optimism about the economy. “We haven’t gotten to where we are by chance. From our first day in office, the Biden-Harris Administration acted quickly and decisively to drive a historic economic recovery and put our economy and financial system on stronger footing for the long-term. “We also didn’t get here alone. The banking sector has been critical. From the start, we recognized the value of a broad and diverse banking system, from small community banks to the largest players, with strong capital and liquidity.” […] “I am proud to announce today the launch of our National Strategy for Financial Inclusion in the United States. It provides a roadmap for the public, private, and non-profit sectors to promote the ability of all communities to fully participate in our robust economy and financial system. “The strategy benefited from a yearlong process to gather input, including sustained engagement with ABA staff and members, other government agencies, consumer advocates, and many others. And it importantly focuses not just on increasing access to the financial system but also on leveraging that access to drive better consumer outcomes like increased financial resilience, wellbeing, and wealth. “It emphasizes the need for action to expand access to transaction accounts and to safe and affordable credit; increase retirement and emergency savings opportunities; improve government financial services; and strengthen consumer protections. Access to safe, affordable financial products and unbiased information can help all Americans pursue financial security. And banks have roles to play across these activities, from facilitating payments to offering credit. We will continue to seek your active partnership in moving this strategy forward.” […] “As we step back and reflect on the past four years, it’s clear that banks of all sizes have been crucial partners in moving forward many of our top economic priorities. So let me thank all of you for this strong and important collaboration and emphasize that it must continue.” ### United States and Taiwan to Begin Negotiating A Comprehensive Tax Agreement To Address Double Taxation 10/29/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 29, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov United States and Taiwan to Begin Negotiating A Comprehensive Tax Agreement To Address Double Taxation WASHINGTON – The U.S. Department of the Treasury announced today that the United States and Taiwan, under the auspices of the American Institute in Taiwan (AIT) and the Taipei Economic and Cultural Representative Office in the United States (TECRO), will begin negotiations on a comprehensive agreement to address double taxation issues. The first round of negotiations is expected to take place in the coming weeks. This action builds on the initiative shown by Congress, which remains a vital partner to address this issue. The Biden-Harris Administration recognizes the work done by committees in the House and Senate to address the issue of double taxation, including through the proposal of the United States-Taiwan Expedited Double-Tax Relief Act and United States-Taiwan Tax Agreement Authorization Act draft legislation. The Administration is committed to engaging with relevant committees throughout the negotiation process and working with Congress on legislation to approve a final agreement and implement the agreement through the Internal Revenue Code. A comprehensive tax agreement will provide critical benefits for both the United States and Taiwan. In particular, this action will support the CHIPS and Science Act’s aims of strengthening the resilience of the semiconductor supply chain, creating jobs, and incentivizing investments in semiconductor manufacturing facilities across the United States. It will reduce double taxation barriers for further investment by Taiwan into the United States, and vice versa, particularly for the small and medium-sized enterprises that are crucial to a complete semiconductor ecosystem. The text is expected to be based on the U.S. Model Income Tax Convention and include items such as: • Reduction of withholding taxes on cross-border payments of dividends, interest, and royalties; • Provisions governing permanent establishments and tax treatment of temporary cross-border workers; • Modern anti-abuse provisions intended to prevent instances of non-taxation of income as well as tax forum shopping; • Dispute resolution mechanisms; and • Provisions for the exchange of information to help revenue authorities in both jurisdictions carry out their duties as tax administrators. ### U.S. Department of the Treasury Releases Inaugural National Strategy for Financial Inclusion 10/29/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 29, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov U.S. Department of the Treasury Releases Inaugural National Strategy for Financial Inclusion WASHINGTON – Today, the U.S. Department of the Treasury (Treasury) released the National Strategy for Financial Inclusion in the United States, which identifies objectives and recommendations for policymakers, industry, employers, and community organizations to advance consumer access to safe financial products and services and strengthen financial security. The Strategy was requested in 2023 by Congress and has been informed by Treasury’s extensive research and engagement with experts, community leaders, industry representatives, and other federal agencies, including public input through a Request for Information. “Access to financial products and services is essential to creating opportunity for all Americans,” said Secretary of the Treasury Janet L. Yellen. “For the first time, Treasury’s strategy provides a national roadmap to expand access to foundational financial tools like credit and investments that are key to building wealth. Implementing these recommendations will help more families build financial security and get ahead.” “Today’s release marks the nation’s first ever strategy on financial inclusion and reflects the Vice President’s leadership on expanding access to capital, credit, and economic opportunity,” said National Economic Advisor Lael Brainard. “This financial inclusion roadmap marks a major step forward in charting a clear path to improving access to banking, credit, savings, and other financial products in underserved communities—to ensure every American has the financial tools to build wealth.” The ability to participate in and benefit from the U.S. financial system is a foundation for financial security and wealth building. While the U.S. has a robust financial infrastructure, there are significant disparities in how different populations interact with and benefit from financial products and services. These disparities contribute to persistent economic inequities. Improving inclusion in the financial system is a critical part of fostering financial resilience and creating opportunities for all communities to succeed. This Strategy is intended to promote an inclusive financial system that works to reduce rather than increase disparities. Objectives and Key Recommendations of the Strategy include:Promote access to transaction accounts that meet consumer needs. Increase access to safe and affordable credit. Expand equitable access to savings and investments. Improve the inclusivity of financial products and services provided or backed by the government. Foster trust in the financial system by protecting consumers from illegal and predatory practices. Treasury invites all stakeholders to engage with this Strategy, to innovate, and to collaborate in creating a more inclusive financial landscape. A fact sheet on the report and recommendations is available here. The full report is available here. ### Remarks by Secretary of the Treasury Janet L. Yellen at the American Bankers Association Annual Convention 10/29/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 29, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov Remarks by Secretary of the Treasury Janet L. Yellen at the American Bankers Association Annual Convention As Prepared for Delivery Let me start by thanking President Nichols for the invitation and for his leadership. I am very glad to have the opportunity to speak to all of you today. Over the past four years, we have forged a strong partnership to get American households and businesses the capital they need, expand economic opportunity, and support the resilience of our financial system. I’d like to speak about this collective work today, and there is no better place to start than to step back to reflect on our economic trajectory since the start of this Administration. When President Biden and Vice President Harris took office, thousands of Americans were dying each day from COVID-19. The unemployment rate was 50 percent higher than it is now. Today, by contrast, the U.S. economy is strong. We’ve seen robust economic growth, bolstered by solid consumer spending and business investment, even while inflation has come down significantly from its peak. The U.S. labor market remains healthy, with the unemployment rate near historic lows and the prime-age labor-force participation rate near all-time highs. While there is more to do to bring down the cost of living, wages have risen faster than prices, which means that the typical American can afford more goods and services than before the pandemic. And Americans are starting new businesses at a record rate, reflecting optimism about the economy. We haven’t gotten to where we are by chance. From our first day in office, the Biden-Harris Administration acted quickly and decisively to drive a historic economic recovery and put our economy and financial system on stronger footing for the long-term. We also didn’t get here alone. The banking sector has been critical. From the start, we recognized the value of a broad and diverse banking system, from small community banks to the largest players, with strong capital and liquidity. And in recent years, banks navigated the pandemic and made it through the regional banking stress, continuing to serve as a backbone for Americans’ financial health and our country’s economic growth. Community banks in particular have played a key role, including by providing a significant portion of small-business loans relative to their assets. I. Economic Recovery Let me discuss several key areas of our partnership, starting with our historic economic recovery. The recovery depended on getting money out the door to families and businesses as quickly and responsibly as possible. This meant working with the banking system, such as to deliver the American Rescue Plan’s Economic Impact Payments to millions of families. This was far from business as usual. Treasury conducted outreach to encourage opening free and low-cost transaction accounts to receive these payments. And banks took action to support their customers at that extremely difficult time, with many community banks, for example, reducing or eliminating penalties for late payments on loans or credit card bills. We also depended on banks for other recovery programs, such as the State Small Business Credit Initiative, a landmark small business program housed at Treasury. Community banks are behind around 90 percent of the SSBCI loans that are supported by banks. We see their impact in examples like Spencer Manufacturing, a family-owned business in Michigan that expanded its manufacturing thanks to SSBCI support and an over $4 million loan from a Michigan-based community bank. As we marked on the CDFI Fund’s 30th anniversary last month, our Administration has also provided unprecedented support to community development financial institutions to help communities recover and invest for the long-term. II. Strong and Inclusive Growth And we’ve continued to work with banks as we’ve looked to drive strong and inclusive growth. Treasury has announced millions in new SSBCI awards. And we’re partnering with CDFIs as we address challenges that have been mounting for decades, such as the drastic shortage of housing units. The CDFI Fund helped finance more than 100,000 affordable housing units last year, and we’ve worked to expand its impact, such as by launching a new program that will provide an additional $100 million over the next three years to support the financing of affordable housing. As part of our focus on driving strong and inclusive growth, we’re also working closely with financial institutions to accelerate the transition to a lower-carbon economy. Treasury’s Principles for Net-Zero Financing and Investment support financial institutions that make net-zero commitments in taking consistent and credible approaches. And financial institutions are key partners to taxpayers seeking to take advantage of the Inflation Reduction Act, including through the transferability market. I strongly believe that banks must stay the course in realizing the opportunities of the transition and in more broadly considering impacts to business from climate change. And as we look to the long-term, we also see banks of all sizes as key to our efforts to expand financial inclusion. For example, Treasury has supported the efforts of the Economic Opportunity Coalition, a public-private partnership announced by Vice President Harris with bipartisan backing. The EOC’s members, including several of America’s largest banks, have committed over $1 billion to community lenders to reach underserved communities across the country. And many of you in this room have been involved in other important efforts. Take the example of Reading Cooperative Bank in Massachusetts, led by former ABA Chair Julie Thurlow. Under Julie’s leadership, its extensive work to advance financial inclusion has included opening a new branch staffed with bilingual bankers in an immigrant community, providing loans to finance housing redevelopment, and pioneering innovative financial products that meet customer needs. In Wisconsin, Bay Bank, a minority depository institution, is serving its community by providing financial education to Tribal citizens and helping them build credit. To move this work forward, I am proud to announce today the launch of our National Strategy for Financial Inclusion in the United States. It provides a roadmap for the public, private, and non-profit sectors to promote the ability of all communities to fully participate in our robust economy and financial system. The strategy benefited from a yearlong process to gather input, including sustained engagement with ABA staff and members, other government agencies, consumer advocates, and many others. And it importantly focuses not just on increasing access to the financial system but also on leveraging that access to drive better consumer outcomes like increased financial resilience, wellbeing, and wealth. It emphasizes the need for action to expand access to transaction accounts and to safe and affordable credit; increase retirement and emergency savings opportunities; improve government financial services; and strengthen consumer protections. Access to safe, affordable financial products and unbiased information can help all Americans pursue financial security. And banks have roles to play across these activities, from facilitating payments to offering credit. We will continue to seek your active partnership in moving this strategy forward. III. Financial Stability And as we’ve driven a historic economic recovery and pursued strong and inclusive long-term growth, we’ve also focused on working with banks to maintain and strengthen financial stability. In March of 2023, we acted decisively in response to runs at Silicon Valley Bank and Signature Bank that were particularly large and fast by historical standards. After regulators closed the banks, we worked quickly to enable all depositors to access their funds. I also approved the Federal Reserve’s establishment of the Bank Term Funding Program. Helped by the base of a banking system strengthened by post-financial crisis reforms, we prevented contagion that could have destabilized the broader financial system and derailed our economic recovery. As we look ahead, we will continue to work with you to address the vulnerabilities the banking stresses in 2023 revealed, including increased shares of uninsured and concentrated deposits and unrealized losses on loan and securities portfolios. This means ensuring that banks are prepared for liquidity stress, including making sure banks have diverse sources of contingency funding, and the capacity to borrow at the discount window and periodically test this capacity. We will also continue to work with you to address a wide range of other risks and opportunities. The ABA has been a key partner in our multi-year effort to bolster the safe and effective use of cloud services, producing resources to support financial institutions in contracting with cloud service providers. We also launched Project Fortress, through which we’re working with financial institutions of all different sizes to pursue offensive measures, like sanctions that hold perpetrators of cyber-related activities accountable, and defensive measures like scanning for vulnerabilities. More than 1,000 financial institutions have now joined. And ABA members also provided important perspectives in response to our recent request for information as we’ve worked to monitor adoption and identify opportunities and vulnerabilities related to the use of AI technologies. And climate-related financial risks also need to be identified and managed. Rising homeowners insurance premiums and gaps in coverage, for example, could increase risks to lenders. So we’ll be considering the risks to banks as well as households as we assess the impacts of climate change on homeowners insurance and monitor other climate-related risks to financial stability. We also of course recognize the growing and evolving role of nonbanks in the financial sector, and challenges for banks as they both cooperate and compete with those firms. We will continue to monitor and address risks posed by the nonbank sector, including private credit and fintech, and its interconnections with banks. IV. Illicit Finance and Sanctions And finally, Treasury’s work to protect the U.S. financial system by cracking down on illicit finance depends on financial institutions. Treasury issued new regulations to help safeguard the residential real estate and investment adviser sectors from illicit finance. We’ve appreciated your engagement and feedback, including on our latest program rule to strengthen our anti-money laundering and countering the financing of terrorism work, which we are working to finalize. We also depend on financial institutions for suspicious activity reports that have enabled U.S. authorities to achieve successful prosecutions and seize billions of dollars involved in illicit finance. That’s why we’ve recently been convening financial institutions and law enforcement officials in key regions to exchange information that will help us crack down on the illicit financing that fuels the opioid epidemic. Domestic and international financial institutions are our front-line defense in other contexts as well, such as in enforcing our sanctions. Nowhere is this truer than with our Russia sanctions, where many banks have been key partners in disrupting transactions that help Russia get financing and goods to sustain its illegal war. V. Conclusion As we step back and reflect on the past four years, it’s clear that banks of all sizes have been crucial partners in moving forward many of our top economic priorities. So let me thank all of you for this strong and important collaboration and emphasize that it must continue. Thank you. ### Treasury Announces Marketable Borrowing Estimates 10/28/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 28, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov Treasury Announces Marketable Borrowing Estimates WASHINGTON – The U.S. Department of the Treasury today announced its current estimates of privately-held net marketable borrowing[1] for the October – December 2024 and January – March 2025 quarters.During the October – December 2024 quarter, Treasury expects to borrow $546 billion in privately-held net marketable debt, assuming an end-of-December cash balance of $700 billion. [2],[3] The borrowing estimate is $19 billion lower than announced in July 2024, largely due to a higher beginning-of-quarter cash balance partially offset by lower net cash flows. During the January – March 2025 quarter, Treasury expects to borrow $823 billion in privately-held net marketable debt, assuming an end-of-March cash balance of $850 billion.[4] During the July – September 2024 quarter, Treasury borrowed $762 billion in privately-held net marketable debt and ended the quarter with a cash balance of $886 billion. In July 2024, Treasury estimated borrowing of $740 billion and assumed an end-of-September cash balance of $850 billion. Privately-held net marketable borrowing was $22 billion higher largely because of a $36 billion higher ending cash balance partially offset by higher net cash flows. Additional financing details relating to Treasury’s Quarterly Refunding will be released at 8:30 a.m. on Wednesday, October 30, 2024. ### [1] Privately-held net marketable borrowing excludes rollovers (auction “add-ons”) of Treasury securities held in the SOMA but includes financing required due to SOMA redemptions. Secondary market purchases of Treasury securities by SOMA do not directly change net privately-held marketable borrowing but, all else equal, when the securities mature and assuming the Federal Reserve does not redeem any maturing securities, would increase the amount of cash raised for a given privately-held auction size by increasing the SOMA “add-on” amount. Additionally, buybacks are not expected to significantly affect privately-held net marketable borrowing as new issuance replaces securities that are bought back. [2] [3] Treasury’s assumed end-of-December cash balance of $700 billion is also its assumed cash balance upon the expiration of the debt limit suspension on January 1, 2025. This assumption is based on expected cash flows under Treasury’s cash management policies and is consistent with its authorities and obligations, including those under the Fiscal Responsibility Act of 2023. The actual cash balance on January 1, 2025, may vary from this assumption based on changes to cash flows near the end of 2024. [4] The end-of-March cash balance assumes enactment of a debt limit suspension or increase. While the debt limit is not currently binding, Treasury’s cash balance may be lower than assumed depending on several factors, including constraints related to the debt limit. . Economy Statement by Eric Van Nostrand, performing duties of Assistant Secretary for Economic Policy for the Treasury Borrowing Advisory Committee 10/28/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 28, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov Economy Statement by Eric Van Nostrand, performing duties of Assistant Secretary for Economic Policy for the Treasury Borrowing Advisory Committee Introduction Recent data indicate that the U.S. economy continued to demonstrate robust growth in the third quarter. Although official data will not be released until after this week’s meeting of the Treasury Borrowing Advisory Committee, private-sector estimates suggest that GDP rose around 2.5 percent at an annual rate in the third quarter, reflecting persistently strong contributions from household consumption. Meanwhile, third-quarter labor market data significantly reduced concerns that job growth was slowing more quickly than economists would consider optimal. The unemployment rate edged back down to 4.1 percent, a level broadly thought to be consistent with roughly stable inflation. Headline inflation, measured over the past 12 months, continued to edge lower in the third quarter. Core inflation remained somewhat elevated on a 12-month basis, as inflation for core services turned up with an acceleration in the prices for medical care services and motor vehicle insurance. On the other hand, monthly inflation for housing moderated by the end of the third quarter, and housing inflation over the past 12 months was the slowest since May 2022. Although further moderation is needed before core inflation is consistent with the Federal Reserve’s target, the data suggest that inflation is likely to sustainably return to the Fed’s target without a recession: the economy appears to be on the path to a soft landing. At the same time, the Biden-Harris Administration continues to focus on its investments to expand the economy beyond this cycle. By expanding our nation’s productive capacity—through significant investments in clean energy, manufacturing capacity, and infrastructure—we aim to build further resilience in the U.S. economy and ensure the modern supply-side expansion of the past few years continues in the long run. Real Gross Domestic Product (GDP) Official data on real GDP growth in the third quarter will not be available until after this week’s TBAC meeting. According to the most recent publicly available survey (the Wall Street Journal survey published October 13, 2024), the median forecast for third-quarter GDP is 2.5 percent at an annual rate—a strong pace of growth that is modestly above the 2.3 percent annualized pace in the first half of 2024. In the survey, estimates of forecasters at the 25th and 75th percentiles ranged from 2.1 percent to 2.8 percent. The Bureau of Economic Analysis will release its advance estimate of third-quarter GDP growth on Wednesday. Given other data published for the third quarter already, personal consumption expenditures (PCE) are likely to be the primary driver of quarterly economic growth. Monthly real PCE has risen by 3.1 percent at an annual rate from June to August, and nominal retail sales data indicate strong household spending in September, providing further evidence of robust PCE growth in Q3. Labor Markets Labor markets improved on balance over the third quarter, contrary to expectations for continued slowing of payroll growth. The average pace of job creation rose in the past three months, while the labor force participation rate (LFPR) for prime-age workers (ages 25-54) increased and the balance between labor demand and supply improved further (see Table 1 – Labor Market Indicators).Payroll job growth stepped up to an average of 186,000 jobs per month in the third quarter, higher than the second quarter average of 147,000 jobs per month. Private-sector firms accounted for over three-fourths of total hiring. Despite the pickup in job growth in the third quarter, hiring has eased over the past several years since the initial recovery from the pandemic: in 2021, payroll growth averaged over 603,000 per month, slowing to 377,000 in 2022, and 251,000 in 2023. This gradual cooling suggests that labor markets may be easing toward sustainable job growth and a stable unemployment rate. Although the unemployment rate held above 4 percent throughout the third quarter, it remained at a low level that is near estimates by the Congressional Budget Office of the non-cyclical unemployment rate—that is, the rate of unemployment arising from all sources except fluctuations in aggregate demand and which is consistent with stable inflation. In July, the unemployment rate rose to 4.3 percent, but it declined in both August and September, returning to 4.1 percent by September. Meanwhile, weekly unemployment insurance claims remained near historically low levels through the third quarter: the level of initial claims (or applications for benefits) was in line with pre-pandemic readings while the level of continuing claims (or approved and paid benefits) was only 4.6 percent above levels just before the pandemic’s onset more than four years ago. Early in the fourth quarter, initial claims jumped to a one-year high, partly reflecting the labor market effects from Hurricane Helene. Although initial claims declined in the most recent reading, continuing claims remain elevated—particularly in hurricane-impacted states. Labor force participation improved in the third quarter for the working age population, as well as for key demographic groups. The overall LFPR stood at 62.7 percent of the population in July, August, and September—just above the second quarter’s average of 62.6 percent. The improvement in the total LFPR was driven by an increase in participation by prime-age workers, whose LFPR rose 0.3 percentage points to 83.9 percent on average in the third quarter. Notably, the LFPR for prime-age workers reached 84.0 percent in July, the highest share of the population since 2001. In addition, the LFPR for those aged 55 or older rose to 38.5 percent on average in the third quarter. Despite stronger job creation and improved labor supply, other measures pointed to softer demand for labor in the third quarter. At the end of July, job openings had dropped to the lowest level since January 2021 before rebounding in August. As a share of available workers, job openings (or vacancies) declined to 1.13 openings per unemployed worker in August—below the pre-pandemic high of 1.24 and down from the record high of 2.03 in March 2022. The combination of these trends, including a rising supply of labor and significant declines in job openings as well as vacancies per unemployed worker, has led to a healthier balance in labor markets, even amid solid job and wage growth. Inflation Over the past two years, inflation has cooled significantly. After peaking in June 2022 at 9.1 percent, annual headline inflation as measured by the consumer price index (CPI) slowed to 2.4 percent by September 2024. This was the lowest twelve-month reading since February 2021. On a monthly basis, the average pace of inflation ticked up during the third quarter to 0.2 percent (or 2.1 percent at an annual rate, see Table 2 – Inflation Indicators).CPI inflation for energy goods and services remained negative in the third quarter; monthly prices dropped 0.9 percent on average, following an average decline of 1.0 percent per month in the second quarter. On the downside, perceptions of slowing global growth—and, with it, reduced demand for energy—kept prices largely in check. Early in the fourth quarter, heightened tensions in the Middle East temporarily renewed upward pressure on oil prices. Prices have since nearly returned to multi-year lows as risks to global oil supply have receded. In addition, the Organization of the Petroleum Exporting Countries and allies (OPEC+) plans to unwind production cuts, which has contributed to downward pressure on energy commodity prices. Monthly food inflation ticked up to 0.2 percent on average in the third quarter, returning to its pace in four of the past five quarters. Whereas consumers have watched the price of a gallon of gasoline drop significantly since mid-2022, price levels for groceries remain higher than they were before the pandemic even though food inflation has slowed and is now near historical rates. Monthly core CPI inflation was also slightly higher in the third quarter, averaging 0.3 percent (3.1 percent at an annual rate) versus an average 0.2 percent per month in the second quarter (2.1 percent at an annual rate). The twelve-month core inflation rate in September was 3.3 percent, one-half the peak rate in the autumn of 2022.Core goods prices declined for the fifth consecutive quarter, dropping 0.1 percent on average in the third quarter—that same decline as in the second quarter. At the end of the quarter, however, core goods prices rose owing to higher prices for durable goods. Even so, core goods prices fell 1.0 percent over the year ending September 2024. Inflation for rent of housing services (rent of primary residence and owners’ equivalent rent) was stable in the third quarter, matching the second quarter’s average pace of 0.4 percent. Prices are now hovering at the bottom of the 0.4 percent to 0.5 percent range that has largely persisted—save for two months—since May 2023. On an annual basis, rent of housing inflation was 5.1 percent through September 2024, the slowest rate in 28 months. Inflation for non-housing core services was also an integral driver of core inflation in the third quarter, averaging 0.3 percent growth per month. The faster pace of core non-housing services inflation largely reflected an upturn in airfares, which switched from a modest drag on inflation in the second quarter to a moderate boost in the third quarter. Core non-housing services inflation also reflected somewhat stronger growth in prices for motor vehicle insurance and repairs. Inflation as measured by the PCE price index has notable differences in weights and methodologies versus the CPI. Over the past 20 years, twelve-month CPI inflation has exceeded PCE inflation by about 0.4 percentage points on average. Over the year through August 2024 (latest data available), the headline PCE price index was 2.2 percent, just 0.2 percentage points above the Federal Reserve’s 2 percent inflation target. Housing Markets Housing market activity was mixed in the third quarter. While construction activity for single-family residences improved noticeably, activity in the multi-family sector softened over the quarter and total completion rates weakened further (see Table 3 – Housing Construction Indicators).Total building permits—a leading indicator of future home construction—declined on average in the third quarter. Although single-family permits rebounded from a second-quarter decline, permits for multi-family structures plunged 3.6 percent, continuing the downtrend observed in this sector since the latter half of 2022. As of September 2024, the level of multi-family permits was roughly one-half of the June 2022 peak. Total housing starts continued to rise modestly, in line with the second quarter’s rebound, supported by a turn-around in single family starts. In the volatile multi-unit sector, the second quarter’s surge gave way to a small decline in starts in the third quarter. The overall inventory of homes under construction fell again in the third quarter with declines in both the single-family and multi-family sectors. After rising strongly in the second quarter, total housing completions also turned negative. Elevated home prices and high mortgage rates continued to weigh on existing home sales and inventories in the third quarter, but the impact on the new home market was minimal (see Table 4 – Home Sales & Inventories Indicators).Sales of total existing homes declined 0.5 percent on average throughout the third quarter, a slower pace of decline than in the second quarter. The inventory of homes for sale over the quarter edged up to 4.2 months of sales. This matched the pre-pandemic, five-year average of the inventory-to-sales ratio. Nonetheless, the number of existing home for sale was historically low during the third quarter, roughly 25 percent below typical inventories at this time of year in the three years before the pandemic. Reduced inventories likely reflect the lock-in effect of current homeowners with mortgage rates much lower those available today. New home sales grew strongly in the third quarter, following two consecutive quarterly declines. Although the higher sales pace pushed the inventory-to-sales ratio down to an average of 7.7 months in the third quarter, new home inventories are high due to robust construction activity in recent years. Indeed, the inventory of homes for sale in the third quarter was the highest since the spring of 2008. Indicators for home price appreciation and rental inflation were mixed in the third quarter—although in all cases, rates of inflation were slower than those that prevailed at the end of last year. Home affordability remains an important challenge, in terms of both price levels and mortgage rates (see Table 5 – Shelter Price Indicators).Although the rise in the S&P/Case-Shiller’s national home price index slowed in July (last available data as of October 24) relative to the second quarter, the pace of house price appreciation in the FHFA purchase-only index rose. Price levels remain elevated, however, which has impacted affordability: the FHFA index was roughly 50 percent higher relative to December 2019, as was the S&P/Case-Shiller index. Mortgage rates have eased somewhat—the 30-year fixed rate mortgage was about 125 basis points below its level a year ago—but remains roughly 370 basis points higher than the historical lows seen in 2021. Data for rental inflation were also mixed over the third quarter. Average monthly growth in the CPI for rent of primary residence maintained an elevated pace, whereas the Zillow Observed Rent Index slowed by more than half. In addition, a relatively new research series created by the Bureau of Labor Statistics—which has been shown to lead the CPI for primary rent by about a year—showed a small acceleration in renters’ shelter costs in the third quarter. (This quarterly series better reflects prices renters would face if they changed housing units every quarter.) Contrary to the second quarter, however, all three of these measures are now running below the respective paces throughout 2023. Risks to the Outlook The balance of data thus far is suggestive of a soft landing. Recent economic growth has exceeded expectations, driven by persistently strong gains in private domestic final purchases. At the same time, labor markets have come into better balance with cooling labor demand and rising participation rates—even as inflation nears the Federal Reserve’s targets. However, a soft-landing outcome is far from certain, with multiple risks for the near-term outlook. Labor market: Although aggregate labor market data suggests solid growth, some details warrant caution. For example, according to the Current Employer Survey, job growth over the past year has been concentrated in just four industries: education and health, government, leisure and hospitality, and construction. Aside from these industries, job growth is slower than it was preceding the pandemic; in white collar industries—professional and business services, financial services, and information services—monthly job gains have averaged roughly one-fourth of their pre-pandemic average. This concentration of job growth could leave the economy less able to absorb a shock—particularly if it is in an industry driving aggregate job growth. Household finances: In aggregate, households appear to be in a solid financial position, supported by wealth gains and rising real wages. Personal saving rates have trended up since June 2022; households are devoting similar shares of their income to debt service; and delinquency rates on conventional mortgages remain historically low. However, some data suggest that risks have increased for the household sector. Credit cards and automotive loans have seen rising transition rates from delinquent (30+ days past due) to seriously delinquent (90+ days past due), and delinquency rates have risen for FHA-insured mortgages—which are often held by households with lower credit scores. A downturn in labor markets or deterioration in economic conditions would be felt more heavily by lower-income households, who are least able to weather economic shifts. A prolonged stock market downturn also presents a risk to the economic outlook. Middle-income and upper-income household consumption has been supported by significant wealth gains, primarily due to rising housing values and corporate equities. In the second quarter of 2024 (latest available data), household net worth stood at the highest share of disposable personal income after excluding the impact of pandemic-era financial support. A drop in stock markets or in housing values could cause these income groups to pull back on spending and exacerbate any other economic weaknesses. Global inflation, geopolitical instability, and supply chains: Inflation has fallen substantially from the highs of mid-2022, but risks remain to the outlook. Continued strong demand growth without comparable supply expansion could push inflation above consensus forecasts, as could supply-chain disruptions from geopolitical events—such as Russia’s war in Ukraine and ongoing conflict in the Middle East. In addition, climate change raises the risk to the inflation outlook through rising shipping costs. For example, drought in Central America has reduced shipping traffic through the Panama Canal, increasing both transportation costs and the prices of goods. Alternatively, a faster-than-expected cooling in the labor market and in economic activity could bring inflation down faster—but with greater cost for American households. CONCLUSION The American economy remains strong, with a healthy labor market and easing inflation. Just a few years ago, economic forecasters did not expect that such a combination of persistently strong growth and moderating inflation was likely—or, among many cases, even possible. But over the past three years, the Biden-Harris Administration has made significant investments to reduce costs, boost economic potential, and make our economy more resilient to risks. The outperformance of the American economy thus far in 2024 shows these investments are paying off. ### Treasury Issues Regulations to Implement Executive Order Addressing U.S. Investments in Certain National Security Technologies and Products in Countries of Concern 10/28/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 28, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov Treasury Issues Regulations to Implement Executive Order Addressing U.S. Investments in Certain National Security Technologies and Products in Countries of Concern WASHINGTON – The U.S. Department of the Treasury (Treasury) today issued a final rule (Final Rule) to implement Executive Order 14105 of August 9, 2023, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern” (the Outbound Order). The Final Rule provides the operative regulations and a detailed explanatory discussion regarding their intent and application. In the Outbound Order, the President directed the Secretary of the Treasury to issue regulations that (1) prohibit U.S. persons from engaging in certain transactions with persons of a country of concern involving a defined set of technologies and products that pose a particularly acute national security threat to the United States, and (2) require U.S. persons to notify Treasury of certain other transactions with persons of a country of concern involving a defined set of technologies and products that may contribute to the threat to the national security of the United States. In the Outbound Order, the President identified the People’s Republic of China, along with the Special Administrative Region of Hong Kong and the Special Administrative Region of Macau, as a country of concern. The technologies and products relevant to the prohibition and notification requirement are identified in the Outbound Order as semiconductors and microelectronics; quantum information technologies; and artificial intelligence. The Final Rule issued today provides details on the subsets of technologies and products within the three sectors identified in the Outbound Order and fully implements a new program that will help address the advancement of key technologies and products by countries of concern that may use them to threaten U.S. national security. “The Biden-Harris Administration is committed to protecting America’s national security and keeping critical advanced technologies out of the hands of those who may use them to threaten our national security. Artificial intelligence, semiconductors, and quantum technologies are fundamental to the development of the next generation of military, surveillance, intelligence and certain cybersecurity applications like cutting-edge code-breaking computer systems or next generation fighter jets. This Final Rule takes targeted and concrete measures to ensure that U.S. investment is not exploited to advance the development of key technologies by those who may use them to threaten our national security,” said Paul Rosen, Assistant Secretary for Investment Security. Rosen added, “U.S. investments, including the intangible benefits like managerial assistance and access to investment and talent networks that often accompany such capital flows, must not be used to help countries of concern develop their military, intelligence, and cyber capabilities. Secretary Yellen has overseen and directed Treasury’s extensive engagement with stakeholders, experts, and allies to ensure the effectiveness of this measure, and that the rule will not jeopardize the open investment environment that benefits the United States.” The United States is committed to fostering an open investment environment, and this targeted new program is consistent with this longstanding policy. As described in the Final Rule, this national security program is focused on certain U.S. outbound investments that contribute capital as well as intangible benefits to persons of a country of concern engaged in activities involving certain sensitive technologies and products that could pose risks to U.S. national security. The Final Rule benefits from dialogue and coordination with U.S. allies and partners on this measure and was informed by input provided from a range of stakeholders since the rulemaking process was initiated in 2023. The Final Rule builds on Treasury’s August 2023 Advance Notice of Proposed Rulemaking (ANPRM) and its July 2024 Notice of Proposed Rulemaking (NPRM). Treasury invited comment on the ANPRM and NPRM, and carefully considered the feedback in developing the regulations. The Final Rule responds to public comments received on the NPRM from a wide range of interested parties by incorporating technical edits, adding specificity to a number of provisions, and including explanatory notes, among other things. The Final Rule defines key terms and provides detail on various aspects of the program’s implementation, including:Obligations of a U.S. person regarding a covered transaction; Categories of covered transactions and excepted transactions; Technical specifications for certain technologies and products in the areas of semiconductors and microelectronics, quantum information technologies, and artificial intelligence; Information that a U.S. person is required to provide to Treasury as part of a notification; The knowledge standard and expectations for a U.S. person to conduct a reasonable and diligent inquiry prior to undertaking a transaction; and Conduct that would be treated as a violation of the Final Rule and applicable penalties for such conduct. The Outbound Investment Security Program will be administered by the newly created Office of Global Transactions, within Treasury’s Office of Investment Security. The Final Rule will become effective on January 2, 2025. The Final Rule, fact sheet, and additional information are available at: https://home.treasury.gov/policy-issues/international/outbound-investment-program ### Additional Information on Final Regulations Implementing Outbound Investment Executive Order (E.O. 14105) 10/28/2024 U.S. Department of the Treasury Office of Public Affairs Press Release: FOR IMMEDIATE RELEASE October 28, 2024 Contact: Treasury Public Affairs; Press@Treasury.gov Additional Information on Final Regulations Implementing Outbound Investment Executive Order (E.O. 14105) WASHINGTON – On October 28, 2024, the U.S. Department of the Treasury (Treasury) issued final regulations (the Final Rule) implementing Executive Order 14105, “Addressing United States Investments in Certain National Security Technologies and Products in Countries of Concern,” issued by President Biden on August 9, 2023 (the Outbound Order). The Final Rule provides the operative regulations and explanatory discussion regarding their intent and application. The regulations go into effect on January 2, 2025. The Outbound Order describes the strategy that countries of concern are engaged in to advance the development of sensitive technologies and products. As part of this strategy, countries of concern are exploiting or have the ability to exploit certain United States outbound investments, including certain intangible benefits that often accompany United States investments and that help companies succeed. These intangible benefits include enhanced standing and prominence, managerial assistance, investment and talent networks, market access, and enhanced access to additional financing. Certain United States outbound investments may accelerate and enhance the successful development of sensitive technologies and products by countries of concern that develop them to counter United States and allied capabilities. In the Outbound Order, the President identifies the People’s Republic of China, along with the Special Administrative Region of Hong Kong and the Special Administrative Region of Macau, as a country of concern. The Biden-Harris Administration is committed to keeping America safe and defending U.S. national security by protecting technologies that are critical to the next generation of military innovation. Cross-border investment flows have long contributed to U.S. economic vitality, and the implementation of the Outbound Order is consistent with our longstanding commitment to open investment that does not threaten our national security interests. The Final Rule reflects Treasury’s consideration of public comments received in response to its August 2023 Advance Notice of Proposed Rulemaking (ANPRM) and its July 2024 Notice of Proposed Rulemaking (NPRM) regarding implementation of the Outbound Order. In developing the Final Rule, Treasury consulted with the Department of Commerce and numerous other U.S. Government departments and agencies. Additionally, Treasury engaged with U.S. allies and partners and will continue coordinating closely with them to advance the goals of the Outbound Order. Key Elements of the Final Rule The following provides a general overview of the key elements of the Final Rule. The full text of the Final Rule should be reviewed for further details, including important definitions.Requirements on U.S. persons: The Final Rule places obligations on U.S. persons, including prohibition of certain transactions and a notification requirement for certain other transactions. A U.S. person includes any United States citizen or lawful permanent resident, as well as any entity organized under the laws of the United States or any jurisdiction within the United States, including any foreign branch of any such entity, and any person in the United States.Knowledge standard: The obligations of a U.S. person under the Final Rule apply if such person has knowledge of relevant facts or circumstances related to a transaction. Under the Final Rule, a U.S. person has knowledge if the U.S. person possesses actual knowledge that a fact or circumstance exists or is substantially certain to occur, if the U.S. person possesses an awareness of a high probability of a fact or circumstance’s existence or future occurrence, or if the U.S. person could have possessed such information through a reasonable and diligent inquiry. To provide clarity, the Final Rule includes factors that Treasury will consider in assessing whether a U.S. person undertook a reasonable and diligent inquiry. Such factors incorporate information that should be ascertainable as well as contractual assurances that should be obtainable through reasonable due diligence. The Final Rule also clarifies that consideration will be given to the totality of the facts and circumstances related to the transaction.Specific categories of covered transactions: The Final Rule applies to certain transactions by U.S. persons, including the acquisition of an equity interest or contingent equity interest; certain debt financing that affords certain rights to the lender; the conversion of a contingent equity interest; a greenfield investment or other corporate expansion; entrance into a joint venture; and certain investments as a limited partner or equivalent (LP) in a non-U.S. person pooled investment fund.Involving covered foreign persons: The Final Rule applies to certain transactions by a U.S. person that involve a covered foreign person—that is, a person of a country of concern that is engaged in a covered activity related to defined sub-sets of technologies and products or a person that has a voting or equity interest, board seat, or certain powers with respect to such a person of a country of concern where more than 50 percent of one of several key financial metrics of the person is attributable to one or more such persons of a country of concern. A person of a country of concern includes an individual who is a citizen or permanent resident of a country of concern (and not a U.S. citizen or permanent resident of the United States); an entity that is organized under the laws of, headquartered in, incorporated in, or with a principal place of business in a country of concern; the government of a country of concern or a person acting for or on behalf of the government of a country of concern; or an entity that is directly or indirectly at least 50 percent-owned by any persons or entities in any of the aforementioned categories. Excepted transactions: The Final Rule excepts certain types of transactions from the rule’s coverage, in some cases, provided that such transactions do not afford a U.S. person certain rights that are not standard minority shareholder protections. Some of these excepted transactions include:Publicly traded securities: An investment by a U.S. person in a publicly traded security or a security issued by a registered investment company, such as an index fund, mutual fund, or exchange-traded fund; Certain LP investments: A U.S. person’s investment made as an LP in a venture capital fund, private equity fund, fund of funds, or other pooled investment fund, if such investment is $2,000,000 or less or if the U.S. person has received a contractual assurance that its capital will not be used by the fund to engage in what would be a prohibited or notifiable transaction; Derivatives: A U.S. person’s investment in certain derivative securities; Buyouts of country of concern ownership: A U.S. person’s full buyout of all country of concern ownership of an entity, such that the entity does not constitute a covered foreign person following the transaction; Intracompany transactions: An intracompany transaction between a U.S. person and its controlled foreign entity to support operations that are not covered activities or to maintain ongoing operations with respect to covered activities that the controlled foreign entity was engaged in prior to January 2, 2025; Certain pre-Final Rule binding commitments: A transaction fulfilling a binding, uncalled capital commitment entered into prior to January 2, 2025; Certain syndicated debt financings: Where the U.S. person, as a member of a lending syndicate, acquires a voting interest in a covered foreign person upon default and the U.S. person cannot initiate any action vis-à-vis the debtor and is not the syndication agent; Equity-based compensation: A U.S. person’s receipt of employment compensation in the form of an award or grant of equity or an option to purchase equity in a covered foreign person, or the exercise of such option; and Third-country measures: Certain transactions involving a person of a country or territory outside of the United States may be excepted transactions where the Secretary of the Treasury determines that the country or territory is addressing national security concerns related to outbound investment and the transaction is of a type for which associated national security concerns are likely to be adequately addressed by the actions of that country or territory.National interest exemption: The Final Rule allows a U.S. person to seek an exemption from the application of the prohibition or notification requirement on the basis that a transaction is in the national interest of the United States. Additional information on the process for seeking an exemption will be made available on the program’s website. Notification requirements: A U.S. person subject to the notification requirement is required to file a notification form with Treasury that includes information related to the transaction, such as details about the U.S. person, the covered foreign person, the covered transaction, and the relevant national security technologies and products. The Final Rule requires that a notification be filed no later than 30 days after the relevant covered transaction is completed or, where a U.S. person acquires actual knowledge after the completion date of a transaction that the transaction would have been a covered transaction if such knowledge had been possessed at the time of the transaction, no later than 30 days after the U.S. person’s acquisition of such knowledge. National Security Technologies and Products The Final Rule identifies the sub-sets of national security technologies and products identified in the Outbound Order that are subject to the regulations:Semiconductors and microelectronics:Prohibited transactions: Covered transactions related to certain electronic design automation software; certain fabrication or advanced packaging tools; the design or fabrication of certain advanced integrated circuits; advanced packaging techniques for integrated circuits; and supercomputers are prohibited. Notifiable transactions: Covered transactions related to the design, fabrication, or packaging of integrated circuits not otherwise covered by the prohibited transaction definition are subject to a notification requirement.Quantum information technologies:Prohibited transactions: Covered transactions related to the development of quantum computers or production of any critical components required to produce a quantum computer; the development or production of certain quantum sensing platforms; and the development or production of certain quantum networks or quantum communication systems are prohibited. Certain artificial intelligence (AI) systems:Prohibited transactions: Covered transactions related to the development of any AI system designed to be exclusively used for, or intended to be used for, certain end uses are prohibited. In addition, covered transactions related to the development of any AI system that is trained using a quantity of computing power greater than 10ˆ25 computational operations, or trained using primarily biological sequence data and a quantity of computing power greater than 10ˆ24 computational operations, are prohibited.Notifiable transactions: Covered transactions related to the development of any AI system not otherwise covered by the prohibited transaction definition, where such AI system is: designed or intended to be used for certain end uses or applications; or trained using a quantity of computing power greater than 10ˆ23 computational operations, are subject to a notification requirement. Violations The Final Rule outlines the penalty and disclosure framework for violations:Penalties: Violations are subject to civil and criminal penalties as set forth in the International Emergency Economic Powers Act (IEEPA). In the event of a violation, Treasury is authorized to impose civil penalties and could also refer criminal violations to the Attorney General. Under IEEPA, as of the issuance of the Final Rule the maximum civil penalty for a violation is the greater of $368,136 (as adjusted annually for inflation) or twice the value of the transaction that is the basis for the violation.Divestment: The Secretary of the Treasury can take any action authorized under IEEPA to nullify, void, or otherwise require divestment of any prohibited transaction.Voluntary self-disclosure: S. persons may submit a voluntary self-disclosure if they believe their conduct may have resulted in a violation of any part of the Final Rule. Such self-disclosure will be taken into consideration during Treasury’s determination of the appropriate response to the self-disclosed activity. The Final Rule can be accessed via the program’s website at https://home.treasury.gov/policy-issues/international/outbound-investment-program. Frequently Asked Questions Why is Treasury issuing these regulations? The Outbound Order directs the Secretary of the Treasury, in consultation with other departments and agencies, to promulgate rules and regulations, including prescribing definitions of terms as necessary to implement the Outbound Order and administer the new program. The Final Rule includes specific requirements for U.S. persons and reflects Treasury’s consideration of public comments received in response to its August 2023 ANPRM and July 2024 NPRM. When does the rule take effect? January 2, 2025. Transactions with a completion date on or after January 2, 2025 are subject to the Final Rule, including the prohibition and notification requirements, as applicable. What are the key differences between the NPRM and the Final Rule? In evaluating public comments on the August 2023 ANPRM and the July 2024 NPRM, and considering feedback from stakeholders, allies and partners, and consulting with relevant U.S. Government departments and agencies, Treasury made certain changes intended to address feedback raised by commenters including with respect to the clarity of the rule and compliance. Key areas that have evolved since the NPRM include:The scope of coverage of transactions involving AI systems;The knowledge standard (which describes the knowledge a U.S. person must have about certain facts and circumstances related to a transaction to trigger obligations under the Final Rule);The scope of the prohibition on U.S. persons “knowingly directing” certain transactions;The scope of LP investments that are covered transactions under the Final Rule and those that are excepted;The definition of covered foreign person with respect to persons holding an interest in a person of a country of concern;The treatment of certain debt and contingent equity transactions;Coverage of derivative transactions;The exception of certain transactions between a U.S. person and its controlled foreign entity;The exception of employee compensation in the form of stock or stock options; andConfidential treatment of information submitted to the U.S. Government under the Final Rule. The full text of the Final Rule should be reviewed for further details. How does a U.S. person file a notification? Notifications are required to be submitted via electronic filing. Treasury will post instructions on how to file on Treasury’s Outbound Investment Security Program website prior to the effective date of the Final Rule. Can U.S. persons still invest in a country of concern? The Final Rule does not prohibit all investment activity in countries of concern. Consistent with the Outbound Order, the Final Rule is narrowly targeted at certain types of investments in country of concern entities and related to sensitive technologies and products critical for military, intelligence, surveillance, or cyber-enabled capabilities. The Final Rule focuses on discrete categories of transactions involving sub-sets of technologies and products in an effort to protect national security, maximize compliance, and minimize unintended consequences. In addition, certain transactions are excepted, including those in publicly traded securities and derivatives, certain LP investments, certain intracompany transactions between U.S. parents and controlled foreign entities, and certain employee compensation in the form of stock or stock options. The United States supports an open investment environment consistent with the protection of U.S. national security. Does this program set-up a screening process or case-by-case review of investments? No. Consistent with the Outbound Order, U.S. persons are prohibited from undertaking certain transactions and are required to notify Treasury of certain other transactions. There will not be a case-by-case review of transactions. The relevant U.S. person undertaking a transaction has an obligation to determine whether the given transaction is prohibited, permissible but subject to notification, or not covered by the Final Rule because either it is an excepted transaction or it is not within the jurisdiction set forth under the Final Rule. A U.S. person can also seek a national interest exemption from the notification requirement or prohibition. How will U.S. individuals and companies be expected to comply with this program? The Final Rule places certain requirements on U.S. persons, including recordkeeping and notification requirements. The Final Rule also establishes a prohibition on certain U.S. person transactions. A U.S. person’s knowledge of certain facts or circumstances is generally a pre-requisite for obligations under the Final Rule. Treasury therefore anticipates that U.S. persons should be able to comply with the Final Rule through a reasonable and diligent transactional due diligence and compliance process. A person who fails to undertake a reasonable and diligent inquiry prior to a transaction may be responsible for knowledge it could have acquired. Are U.S. nationals working at foreign entities going to be impacted? U.S. persons are prohibited from knowingly directing transactions by non-U.S. entities that the U.S. person knows at the time of the transaction would be prohibited if engaged in by a U.S. person. The Final Rule provides for a U.S. person’s recusal from participation in certain activities to avoid violating this prohibition. The Final Rule does not restrict a U.S. person from generally working at any entity that receives investment, nor does it restrict a U.S. person from working at an entity making such an investment. Are technology licensing, consulting, or procurement contracts covered? Certain transactions that involve the acquisition of equity or a contingent equity interest, conversion of a contingent equity interest, provision of debt financing that carries certain rights, greenfield investments or other corporate expansions, the entrance into joint ventures, or certain LP investments are covered. Activities that do not meet the definition of a covered transaction are not subject to the program except where they are undertaken to evade or avoid the Final Rule. Will Treasury publish a list of designated covered foreign persons under the program? At this time, Treasury does not intend to publish a list of entities designated as covered foreign persons. Instead, Treasury expects a U.S. person to conduct a reasonable and diligent inquiry to determine whether a transaction is covered under the Final Rule, including whether any covered foreign persons are involved. What are the penalties for violations of the program? The Outbound Order authorizes the Secretary of the Treasury to investigate violations of the regulations, including pursuing civil penalties available under IEEPA and referring criminal violations to the Attorney General. The Secretary of the Treasury may also, as appropriate, take action authorized under IEEPA to nullify, void, or otherwise compel the divestment of any prohibited transaction. Under IEEPA, currently the maximum civil penalty for a violation is the greater of $368,136 or twice the value of the transaction that is the basis for the violation. Is Treasury working with U.S. allies and partners? Treasury, working with the U.S. Department of State, has engaged with U.S. allies and partners regarding the important national security goals of the Outbound Order. The Outbound Order and the scope of the program reflect discussions with the G7 and other ally and partner engagements. Treasury is encouraged by the interest and attention given to this issue by allies and partners, including in the July 2024 G7 Apulia Leaders’ Communiqué. Treasury also notes that the European Commission and United Kingdom have begun processes to consider whether and how to address outbound investment risks. Does Treasury intend to put out further details on the program? Prior to the effective date of the Final Rule, Treasury will provide on its Outbound Investment Security Program website instructions on how to file a notification and how to request a national interest determination. In addition, Treasury anticipates providing additional information to help facilitate compliance by U.S. persons. Treasury also anticipates engaging in stakeholder outreach and education on the requirements in the Final Rule. Further, with respect to the exception regarding certain transactions with or involving persons of designated territories or countries outside the United States, Treasury anticipates making available on its website more information on the factors the Secretary of the Treasury will consider when making a designation of a country or territory or a determination as to the types of transactions for which the relevant national security concerns are likely to be adequately addressed by measures taken or that may be taken by the government of the relevant country or territory.