Comment The House is expected to vote Thursday on the $280 billion Chips and Science Act, a bill that would subsidize domestic semiconductor manufacturing and invest billions in science and technology innovation in an effort to boost the United States’ competitiveness and self-reliance in what is considered a key industry for economic and national security. The Senate approved the bill on Wednesday by a vote of 64-33. Days earlier, House Speaker Nancy Pelosi (Calif.) had said there would also be bipartisan support to pass the bill in the House and promised to send it to President Biden’s desk as soon as possible. At the time, House Republican leaders had planned to let the rank and file vote their conscience on the bill. But after Wednesday night’s surprise news of a deal between Sen. Joe Manchin III (DW.Va.) and Democratic leaders on a separate climate, health care and tax bill, GOP leaders of Members of Parliament are urging members to oppose the chip bill. retaliation, potentially denying Biden and Senate Majority Leader Charles E. Schumer (DN.Y.) a legislative victory. Before the House GOP decided to vote against the stamps bill, supporters of the legislation believed they could muster a significant amount of Republican support — perhaps as many as 20 votes, according to people familiar with the vote counting who spoke under term of anonymity. discuss the matter freely. They said House GOP leaders still expect some walkouts, but not an overwhelming number. Some members of the Congressional Progressive Caucus have also been leery of the bill — Sen. Bernie Sanders (I-Vt.) publicly criticized and voted against it Wednesday — and there are fears that its passage could be threatened if lawmakers who support it fall short. . Democratic leadership aides are telegraphing that they have the votes, but some liberals are waiting to hear Commerce Secretary Gina Raimondo’s proposal at a virtual meeting Thursday afternoon before making a final decision. Rep. Pramila Jayapal (D-Wash.), the chairwoman of the progressive committee, told Punchbowl News that she had reassuring discussions with Raimondo about guardrails in the token bill that bar companies receiving federal funding from using the money for share buybacks. On the House floor Thursday, Minority Leader Kevin McCarthy (Calif.) blasted the bill as a “$280 billion blank check” to the semiconductor industry, saying he has always opposed it. Rep. Guy Reschenthaler (R-Pa.) criticized the legislation as one that would only benefit “one industry,” and several GOP lawmakers urged their colleagues to vote no. Rep. Joseph Morelle (DN.Y.) countered by saying there were few industries that did not use semiconductor chips. “Chips run everything. So either it’s yours cell phone, laptop, your car, it really doesn’t material. Children’s toys have chips in them,” Morelle said. “And the fact is, we’ve lost our competitive edge… It’s not an industry. It concerns every industry.” Later, Morelle read aloud on the House floor praise for the legislation — from Senate Republicans who had voted to pass it just the day before. Biden said the legislation is one of the top priorities on his agenda and called on Congress to bring the bill to his desk as soon as possible. On Wednesday, he praised the bill as a response to Americans’ concerns about the state of the economy and the cost of living. “It will speed up semiconductor manufacturing in America, driving down prices on everything from cars to dishwashers,” Biden said in a statement. “It will also create jobs — good-paying jobs here in the United States. It will mean more resilient American supply chains, so we are never so dependent on foreign countries for the critical technologies we need for American consumers and national security.” If the bill passes, about $52 billion would go to microchip makers to incentivize them to build domestic semiconductor manufacturing plants – or “fabs” – to make the chips, which are used in a wide variety of products, including motor vehicles, mobile phones, medical equipment. and military weapons. The shortage of semiconductor chips during the coronavirus pandemic has caused price increases and supply chain disruptions in several industries. The bill also includes about $100 billion in authorizations over five years for programs such as expanding the work of the National Science Foundation and creating regional technology hubs to support startups in areas of the country that traditionally don’t get much technology funding. At a White House meeting with business and labor leaders Monday, Raimondo noted that the United States used to make 40 percent of the world’s brands, but now makes about 12 percent — and “virtually none of the cutting-edge brands,” which they come almost entirely from Taiwan. The United States has invested “almost nothing” in semiconductor manufacturing, while China has invested $150 billion to develop its domestic manufacturing capacity, Raimondo said. He also said it is critical for the United States to be able to compete with countries that provide subsidies to semiconductor companies to build factories. “Chip funding will be the deciding factor in where these companies choose to expand,” Raimondo said. “We want them, we need them, to expand here in the United States.” Included in the legislation are provisions that would bar companies from building most types of new semiconductor manufacturing facilities in China “or any other foreign country of concern” for a decade after receiving federal funding. Jeanne Whalen contributed to this report.
