USA Rare Earth Faces Congressional Scrutiny Over $1.6 Billion Deal as Democrats Advance Critical Minerals Legislation

Highlights

• USA Rare Earth secured up to $277M in federal funding and $1.3B in loan capacity in June 2026, now facing congressional scrutiny over political connections.
• Democratic senators have sponsored multiple critical minerals bills including the SECURE Minerals Act, STRATA Act, and Critical Mineral Executive Coordination Act.
• Columbia University estimates only $8B of $30B in announced critical minerals projects has begun receiving funding, requiring project-level verification.
• China's reported 91% refining share remains the core strategic bottleneck—financing must deliver actual separation and metals output, not just subsidized capacity.