Dear Colleague on Chips Act for America

July 20, 2022
Press Release

Dear Democratic Colleague,

Yesterday was a day of important progress in the Senate, as it took the first step toward passing the Chips Act for America: a bold, bipartisan package that will lower costs for families here at home while reigniting American competitiveness on the world stage. Let us salute President Biden and our tireless negotiators for all of their hard work fighting for House priorities, including significant new investments in science and technology.

With this package, the United States returns to its status as a world leader in the manufacturing of semiconductor chips. The investment to produce chips is reported to create nearly 100,000 new American Davis-Bacon jobs. Doing so is an economic necessity to lower costs for consumers and to win in the 21st Century Economy, as well as a national security imperative as we seek to reduce our dependence on foreign manufacturers.

Importantly, the legislation contains strong guardrails:

  • Companies are prohibited from using awarded funds through the CHIPS program for stock buybacks or payment of dividends.
  • The expansion clawback in the bill requires the recipients of federal financial assistance not to engage in certain material expansions of semiconductor manufacturing in countries of concern.
  • Companies that receive federal financial assistance through the CHIPS program are required to notify the Department of Commerce of any plans for significant transactions that may violate the agreement.
  • The legislation retains tight Congressional control over the federal funds provided to support the domestic production of semiconductors through the CHIPS Act.

This package also includes numerous victories in science and technology for American consumers and workers, including:

  • Strengthening research and development through the National Science Foundation, the Department of Energy and the National Institute of Standards and Technology, which will power America's preeminence in both basic research and next-generation technologies
  • Advancing regional technology hubs to ensure that communities across the country can participate in research and development
  • Diversifying our STEM workforce to be inclusive so that our nation's brightest minds are helping drive American innovation
  • Expanding access to American-made 5G technology so everyone can participate in the 21st Century Economy
  • $1 billion RECOMPETES grant program for persistently distressed communities, creating good-paying jobs meeting local economic development needs

The Chips Act for America is a major victory for American families and the American economy. As the Senate undergoes its legislative process, we are optimistic that the House will be able to take this bill up as early as next week.

Thank you for your leadership to advance prosperity and opportunity For The People.

NANCY