Lawmakers propose $2.5B agency to boost production of rare earths and other critical minerals

WASHINGTON (AP) — A bipartisan group of lawmakers have proposed creating a new agency with $2.5 billion to spur production of rare earths and the other critical minerals, while the Trump administration has already taken aggressive actions to break China's grip on the market for these materials that are crucial to high-tech products, including cellphones, electric vehicles, jet fighters and missiles.

It’s too early to tell how the bill, if passed, could align with the White House’s policy, but whatever the approach, the U.S. is in a crunch to drastically reduce its reliance on China, after Beijing used its dominance of the critical minerals market to gain leverage in the trade war with Washington. President Donald Trump and Chinese President Xi Jinping agreed to a one-year truce in October, by which Beijing would continue to export critical minerals while the U.S. would ease its export controls of U.S. technology on China.

The Pentagon has shelled out nearly $5 billion over the past year to help ensure its access to the materials after the trade war laid bare just how beholden the U.S. is to China, which processes more than 90% of the world's critical minerals. To break Beijing's chokehold, the U.S. government is taking equity stakes in a handful of critical mineral companies and in some cases guaranteeing the price of some commodities using an approach that seems more likely to come out of China's playbook instead of a Republican administration.

The bill that Sen. Jeanne Shaheen, D-N.H., and Sen. Todd Young, R-Ind., introduced Thursday would favor a more market-based approach by setting up the independent body charged with building a stockpile of critical minerals and related products, stabilizing prices, and encouraging domestic and allied production to help ensure stable supply not only for the military but also the broader economy and manufacturers.

Shaheen called the legislation “a historic investment” to make the U.S. economy more resilient against China’s dominance that she said has left the U.S. vulnerable to economic coercion. Young said creating the new reserve is “a much-needed, aggressive step to protect our national and economic security.”

When Trump imposed widespread tariffs last spring, Beijing fought back not only with tit-for-tat tariffs but severe restrictions on the export of critical minerals, forcing Washington to back down and eventually agree to the truce when the leaders met in South Korea.

On Monday, in his speech at SpaceX, Defense Secretary Pete Hegseth revealed that the Pentagon has in the past five months alone “deployed over $4.5 billion in capital commitments” to close six critical minerals deals that will “help free the United States from market manipulation.”

One of the deals involves a $150 million of preferred equity by the Pentagon in Atlantic Alumina Co. to save the country's last alumina refinery and build its first large-scale gallium production facility in Louisiana.

Last year, the Pentagon announced it would buy $400 million of preferred stock in MP Materials, which owns the country's only operational rare earths mine at Mountain Pass, California, and entered into a $1.4-billion joint partnership with ReElement Technologies Corp. to build up a domestic supply chain for rare earth magnets.

The drastic move by the U.S. government to take equity stakes has prompted some analysts to observe that Washington is pivoting to some form of state capitalism to compete with Beijing.

“Despite the dangers of political interference, the strategic logic is compelling,” wrote Elly Rostoum, a senior fellow at the Washington-based research institute Center for European Policy Analysis. She suggested that the new model could be “a prudent way for the U.S. to ensure strategic autonomy and industrial sovereignty.”

But companies across the industry are welcoming the intervention from Trump's administration.

“He is playing three-dimensional chess on critical minerals like no previous president has done. It's about time too, given the military and strategic vulnerability we face by having to import so many of these fundamental building blocks of technology and national defense,” NioCorp's Chief Communications Officer Jim Sims said. That company is trying to finish raising the money it needs to build a mine in southeast Nebraska.

In addition to trying to boost domestic production, the Trump administration has sought to secure some of these crucial elements through allies. In October, Trump signed an $8.5 billion agreement with Australia to invest in mining there, and the president is now aggressively trying to take over Greenland in the hope of being able to one day extract rare earths from there.

On Monday, finance ministers from the G7 nations huddled in Washington over their vulnerability in the critical mineral supply chains.

U.S. Treasury Secretary Scott Bessent, who has led several rounds of trade negotiations with Beijing, urged attendees to increase their supply chain resiliency and thanked them for their willingness to work together “toward decisive action and lasting solutions,” according to a Treasury statement.

The bill introduced on Thursday by Shaheen and Young would encourage production with both domestic and allied producers.

Congress in the past several years has pushed for legislation to protect the U.S. military and civilian industry from Beijing's chokehold. The issue became a pressing concern every time China turned to its proven tactics of either restricting the supply or turned to dumping extra critical minerals on the market to depress prices and drive any potential competitors out of business.

The Biden administration sought to increase demand for critical minerals domestically by pushing for more electric vehicle and windmill production. But the Trump administration largely eliminated the incentives for those products and instead chose to focus on increasing critical minerals production directly.

Most of those past efforts were on a much more limited scale than what the government has done in the past year, and they were largely abandoned after China relented and eased access to critical minerals.

Funk reported from Omaha, Nebraska. AP writer Konstantin Toropin contributed to the report.

FILE - NioCorp Chief Operating Officer Scott Honan tells a group of investors about the plans for a proposed mine during a tour of the site Oct. 6, 2021, near Elk Creek in southeast Nebraska. (AP Photo/Josh Funk, File)

FILE - President Donald Trump, left, and Chinese President Xi Jinping, right, shake hands before their meeting at Gimhae International Airport in Busan, South Korea, Oct. 30, 2025. (AP Photo/Mark Schiefelbein, File)

FILE - Workers use machinery to dig at a rare earth mine in Ganxian county in central China's Jiangxi province on Dec. 30, 2010. (Chinatopix via AP, File)

WASHINGTON (AP) — President Donald Trump’s second term has been eventful. You wouldn’t know it from his approval numbers.

An AP-NORC poll from January found that about 4 in 10 U.S. adults approve of Trump’s performance as president. That’s virtually unchanged from March 2025, shortly after he took office for the second time.

The new poll from The Associated Press-NORC Center for Public Affairs Research does show subtle signs of vulnerability for the Republican president. Trump hasn’t convinced Americans that the economy is in good shape, and many question whether he has the right priorities when he’s increasingly focused on foreign intervention. His approval rating on immigration, one of his signature issues, has also slipped since he took office.

Here’s how Americans’ views of Trump have — and haven’t — changed over the past year, according to AP-NORC polling.

Call it a gift or a curse — for all his unpredictability, Trump's approval numbers just don't change very much.

This was largely the case during his first term in office, too. Early in his first term, 42% of Americans approved of how he was handling the presidency. There were some ups and downs over the ensuing years, but he left office with almost the same approval.

That level of consistency on presidential approval numbers could be the new normal for U.S. politics — or it could be unique to Trump. Gallup polling since the 1950s shows that presidential approval ratings have grown less variable over time. But President Joe Biden had a slightly different experience. Biden, a Democrat, entered the White House with higher approval numbers than Trump has ever received, but those fell rapidly during his first two years in office, then stayed low for the remainder of his term.

Most Americans have held a critical view of Trump throughout his time in office, and Americans are twice as likely to say he's focused on the wrong priorities than the right ones. About half of U.S. adults say he’s mostly focusing on the wrong priorities one year into his second term, and approximately 2 in 10 say he’s mostly focused on the right priorities. Another 2 in 10, roughly, say it’s been about an even mix, and 14% say they don't have an opinion.

The economy has haunted Trump in his first year back in the White House, despite his insistence that “the Trump economic boom has officially begun.”

Just 37% of U.S. adults approve of how Trump is handling the economy. That’s up slightly from 31% in December — which marked a low point for Trump — but Trump started out with low approval on this issue, which doesn’t give him a lot of room for error.

The economy is a new problem for Trump. His approval rating on this issue in his first term fluctuated, but it was typically higher. Close to half of Americans approved of Trump’s economic approach for much of his first White House stint, and he’s struggled to adjust to this as a weak point. Americans care a lot more about costs than they did in Trump’s first term, and, like Biden, he’s persistently asserted that the U.S. economy is not a problem while the vast majority describe it as “poor.”

About 6 in 10 U.S. adults say Trump has done more to hurt the cost of living in his second term, while only about 2 in 10 say he’s done more to help. About one-quarter say he hasn't made an impact.

When Trump entered office, immigration was among his strongest issues. It’s since faded, a troubling sign for Trump, who campaigned on both economic prosperity and crackdowns to illegal immigration.

Just 38% of U.S. adults approve of how Trump is handling immigration, down from 49% in March. The poll was conducted Jan. 8-11, shortly after the death of Renee Good, who was shot and killed by a U.S. Immigration and Customs Enforcement officer in Minneapolis.

But there are signs that Americans still give Trump some leeway on immigration issues. About half of U.S. adults say Trump has “gone too far” when it comes to deporting immigrants living in the country illegally, which is unchanged since April, despite an immigration crackdown that spread to cities across the U.S. in the second half of the year.

Nearly half of Americans, 45%, say Trump has helped immigration and border security “a lot” or “a little” in his second term. This is an area where Democrats are more willing to give Trump some credit. About 2 in 10 Democrats say Trump has helped on this issue, higher than the share of Democrats who say he's helped on costs or job creation.

Trump has focused his attention more on foreign policy in his second term, and polling shows most Americans disapprove of his approach.

But much like Trump's overall approval, views of his handling of foreign policy have changed little in his second term, despite wide-ranging actions including his push to control Greenland and the recent military capture of Venezuelan President Nicolás Maduro.

About 6 in 10 Americans disapprove of how Trump is handling the issue of foreign policy, and most Americans, 56%, say Trump has “gone too far” in using the U.S. military to intervene in other countries.

Trump’s continued focus on global issues could be a liability given its sharp contrast with the “America First” platform he ran on and Americans’ growing concern with costs at home. But it could also be hard to shift views on the issue — even if Trump takes more dramatic action in the coming months.

The AP-NORC poll of 1,203 adults was conducted Jan. 8-11 using a sample drawn from NORC’s probability-based AmeriSpeak Panel, which is designed to be representative of the U.S. population. The margin of sampling error for adults overall is plus or minus 3.9 percentage points.

President Donald Trump holds a bill that returns whole milk to school cafeterias across the country, in the Oval Office of the White House, Wednesday, Jan. 14, 2026, in Washington. (AP Photo/Alex Brandon)

FILE - President Donald Trump waves after arriving on Air Force One from Florida, Jan. 11, 2026, at Joint Base Andrews, Md. (AP Photo/Julia Demaree Nikhinson, File)