On Thursday, the House passed a massive $280 billion spending bill meant to counter China in a vote of 243-187, with no Democrats voting against the legislation and 24 Republicans voting in favor. The bill has already passed through the Senate and now heads to President Biden’s desk.
The CHIPS and Science Act of 2022 includes $52.7 billion to subsidize the domestic production of semiconductor chips and $24 billion for tax incentives and other purposes.
The bill will also authorize roughly $200 billion in science and technology research funding that will be spread across several government agencies over the next five years. The largest recipient of the research funds will be the National Science Foundation, which will receive $81 billion.
The legislation made it through the Senate in a vote of 63-33, with 17 Republicans voting in favor. Sen. Chuck Schumer (D-NY) led the effort to pass the bill in the Senate and convinced enough Republicans to get on board by arguing it was necessary to beat China. “If we didn’t get there first, our rivals, chief among them the Chinese Communist Party, would likely beat us to the punch and reshape the world in their authoritarian image,” Schumer said before the vote.
Republican opponents of the bill said the semiconductor funds are akin to corporate welfare. Earlier this week, President Biden and Deputy Defense Secretary Kathleen Hicks discussed the legislation with the CEO of Lockheed Martin, who says more semiconductors are needed to build advanced weapons.
An earlier version of the legislation passed the House back in February, but it was stalled in the Senate until it was stripped down to the CHIPS and Science Act. Even though other elements were removed from the bill, the final legislation added $30 billion.
6 thoughts on “House Passes $280 Billion Industrial Policy Bill Meant to Counter China”
More pork barrel politics and unfunded spending. These goofs are really being led down the garden path.
Most of the US imported foreign chips come from Taiwan NOT China. If US thinks Taiwan is not a threat then why spend for this bill…?! Stupidity…?!
Trump tried to ruin Huawei Telecom by denying access to Qualcomm chips, It was a wake-up call. China may soon be the leader in 7 nm chips and will be making 5 nm chips as well. The US is now trying to play catch-up.
I am constantly amazed by hubris in the US. Many of our leaders are so convinced that we are the indispensable country that they assume sanctions can ruin any other country. This notion reminds me of a child who thinks it would be fun to kick a hornet’s nest. I think it will not end well for us plebeians who put them in office.
We will bury them!
Dig deep, America! your country needs your stolen wages for more corp. welfare.
U.S. is at least five years behind on this. All those outsourcing, now peddling for their lives.
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