Ro Khanna Proposes $900 Billion Investment in "21st Century Marshall Plan" for American Economic Revitalization

Representative Ro Khanna (CA-17) has articulated a vision for a "21st-century Marshall Plan for America," advocating for substantial federal investment to address economic inequality and revitalize deindustrialized regions across the United States. This concept, which he frequently references, aims to foster economic growth and create jobs in communities often overlooked by the digital revolution.

At the core of Khanna's proposal is the reintroduction of his "21st Century Jobs Act," a landmark bill designed to allocate $900 billion in research and development (R&D) funding. This funding is earmarked for emerging technologies such as cybersecurity, artificial intelligence, and biotechnology, with the goal of generating up to three million new jobs annually. The initiative also includes the establishment of a Federal Institute of Technology (FIT) to administer these programs.

The plan emphasizes widespread STEM instruction, particularly computer science, in K-12 public schools nationwide, and provides STEM scholarships to close educational gaps for underserved students. Additionally, it offers tax incentives for federal government contractors to establish operations and hire workers in rural and economically struggling areas, encouraging companies to decentralize their workforce. Khanna asserts that this approach ensures jobs are available in communities rather than solely concentrated in major tech hubs.

Khanna's "Marshall Plan" draws a parallel to the post-World War II European Recovery Program, but shifts its focus domestically to address internal economic disparities. He argues that government investment, similar to historical initiatives like the New Deal's Reconstruction Finance Corporation or the funding of NASA, is crucial for industrialization and national strength. This vision aims to combat the "hollowing out of factory towns" and the "decimation of rural America," as he stated in a recent discussion.

The proposal has garnered support from economists such as Jonathan Gruber and Simon Johnson of MIT, who describe it as an "ambitious and visionary plan" essential for returning America to the technological frontier and creating millions of jobs. Jason Furman, former Chairman of the Council of Economic Advisers, noted that Khanna's plan would "unleash the largest race to the top in American history" by encouraging regions to improve education, infrastructure, and local innovation. Khanna believes this comprehensive strategy is vital for national security independence and social cohesion, ensuring that economic prosperity is shared across all parts of the country.