Santa Fe New Mexican

House passes semiconduc­tor subsidy bill

$280 billion Chips and Science Act hopes to strengthen U.S. competitiv­eness in key industry

- By Amy B. Wang and Marianna Sotomayor

The House on Thursday voted to pass the $280 billion Chips and Science Act, a bill that would subsidize domestic semiconduc­tor manufactur­ing and invest billions in science and technology innovation, in a bid to strengthen the United States’ competitiv­eness and self-reliance in what is seen as a keystone industry for economic and national security.

The House passed the legislatio­n on a 243-187 vote, with strong bipartisan support — despite a last-minute push by House GOP leaders to whip against the bill. Twenty-four Republican­s joined Democrats in backing the measure.

The Senate had passed the bill Wednesday in a 64-33 vote. Days earlier, House Speaker Nancy Pelosi, D-Calif., had said there would be bipartisan support for the bill’s passage in the House and vowed to send it to President Joe Biden’s desk as soon as possible. At the time, House Republican leaders had planned to let their rank and file vote their conscience on the bill.

However, after the stunning news Wednesday night of a deal between Sen. Joe Manchin, D-W. Va., and Democratic leaders on a separate climate, health-care and taxes bill, House GOP leaders urged members to oppose the chips bill as retributio­n, in an effort to deny Biden and Senate Majority Leader Chuck Schumer, D-N.Y., a legislativ­e win.

Before the House GOP decided to whip against the chips bill, proponents of the legislatio­n thought they could garner a sizable amount of Republican support, according to people familiar with the vote counts who spoke on the condition of anonymity to freely discuss the matter. Before the vote, Rep. Michael McCaul, R-Texas, the ranking Republican on the House Foreign Affairs Committee, told reporters he would still support the bill, calling it a national security issue.

Others, however, said they would toe the party line. Rep. Frank Lucas, R-Okla., the ranking GOP member on the House Science, Space and Technology Committee, said he expected his remarks on the bill would be very different “just 24 hours ago.” Lucas noted he had worked on the chips-funding legislatio­n for more than three years, and lamented that it was now “irrevocabl­y tied to a massive tax hike and spending spree,” referring to the Democrats’ tax bill.

“Regrettabl­y, and it’s more regrettabl­y than you can possibly imagine, I will not be casting my vote for the CHIPS and Science Act today,” Lucas said. “I want to emphasize that this is in no way a reflection of my feeling about the transforma­tional research policies in this bill.”

Some members of the Congressio­nal Progressiv­e Caucus were also squeamish on the bill, and there was fear its passage in the House could be threatened if supporting lawmakers dwindled. Commerce Secretary Gina Raimondo met with the caucus virtually Thursday afternoon to provide reassuranc­es about guardrails included in the bill.

On the House floor Thursday, Minority Leader Kevin McCarthy, R-Calif., slammed the legislatio­n as a “$280 billion blank check” to the semiconduc­tor industry, saying he had always opposed it. Rep. Guy Reschentha­ler, R-Pa., criticized the bill as one that would benefit only “a single industry,” and several GOP lawmakers urged their colleagues to vote no.

Rep. Joe Morelle, D-N.Y., countered by saying there were few industries that did not utilize semiconduc­tor chips.

“Chips run everything. So whether it’s your cellphone, your laptop, your automobile, it really doesn’t matter. Children’s toys have chips in them,” Morelle said. “And the fact is we have lost our competitiv­e edge … This isn’t about a single industry. It’s about every industry.”

 ?? J. SCOTT APPLEWHITE/ASSOCIATED PRESS ?? House Speaker Nancy Pelosi, D-Calif., stands with House Energy and Commerce Chairman Frank Pallone, D-N.J., in Washington on Thursday after the House approved the bipartisan chips bill designed to encourage more semiconduc­tor plants in the U.S.
J. SCOTT APPLEWHITE/ASSOCIATED PRESS House Speaker Nancy Pelosi, D-Calif., stands with House Energy and Commerce Chairman Frank Pallone, D-N.J., in Washington on Thursday after the House approved the bipartisan chips bill designed to encourage more semiconduc­tor plants in the U.S.
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