Biden expects to sign $280 billion CHIPS bill, critics fear will worsen debt and inflation

President Joe Biden is expected to sign the CHIPS Act, a $280 billion spending bill designed to encourage American manufacturers to produce semiconductor chips in the US

Critics say the measure will not include corporate accountability, which will preserve taxpayers’ dollars, increase national debt and 40 years of high inflation, and will not strengthen national security.

The bill passed the US Senate by a vote of 64 to 33, with 17 Republicans joining Democrats to approve it. It passed the House of Representatives by a vote of 243 to 187, with 24 Republicans supporting 219 Democrats, although the Republican leadership opposed the bill.

Biden expressed his support, tweeting: “Semiconductor chips are the building blocks of the modern economy – they power our smartphones and cars.” And for years the manufacturing was sent overseas. For the sake of American jobs and our economy, we must create them at home. The CHIPS for America Act will do that.”

Chuck Schumer, Democratic Senate Majority Leader, said the bill will “target the nationwide semiconductor chip shortage, lower costs for American consumers, and boost scientific innovation and jobs.”

Key provisions of the bill include $52.7 billion in taxpayer-funded subsidies for U.S. chip manufacturing, a 25 percent tax credit for semiconductor manufacturing, $1.5 billion for technology development by U.S. companies, who claim to be dependent on foreign telecommunications, and $10 billion the Commerce Department to develop 20 regional technology centers and instructions to expand the federal government through expanding federal agencies.

The Congressional Budget Office says the bill “provides approximately $200 billion over the period 2022-2031, primarily for research activities.”

A section of the bill directs the US Department of Energy to fund research facilities and infrastructure that will cost $5.9 billion. CBO estimates this will increase direct spending by $3.1 billion over the period 2022-2031.

Another section authorizes the National Aeronautics and Space Administration to complete extended-use leases through 2032, which will increase direct spending by $80 million over 2022-2031, according to the CBO.

Texas Republican Sen. John Cornyn, who joined Democrats in voting for the measure, said it would “help boost domestic production of these semiconductors in a way that avoids vulnerability in our supply chain, since 90 percent of these advanced semiconductors.” currently originate from Asia.”

He also said: “The construction of these new facilities could create about 185,000 jobs each year. In the long term, another 280,000 jobs could go online. Once these foundries are up and running, they will provide American-made semiconductors that can be used in everything from smartphones to cars and airplanes to missile defense systems.”

The bill will also allow the US to “compete,” “beat,” and be “more innovative” with China, he said.

Texas Gov. Greg Abbott also commended the passage of the bill, saying it will help expand manufacturing in Texas, which he says is “a beacon of innovation and has been the nation’s top semiconductor exporter for 11 consecutive years.” and other electronic components”.

But Florida Senator Rick Scott, who urged his colleagues in the Senate and House of Representatives to vote against the bill, argues it is a “pro-Chinese” bill that “will tarnish America’s standing on the world stage.”

With the US now in debt of $30 trillion, “issuing another $280 billion that we don’t have,” he said, “sets a dangerous precedent for massive, taxpayer-funded corporate welfare for the world’s most profitable companies with no accountability or guarantees.” Return on Investment for the American People.

“Even worse, the bill lacks basic safeguards and would allow companies to use American taxpayer money to build factories in communist China and increase their share of China’s semiconductor market.”

He added that the bill does not require manufacturers to build a specific number of plants in the United States or require them not to outsource American jobs abroad. The bill does not include chip quota production requirements for manufacturers, instead functioning “like a blank check with virtually no accountability measures to protect the massive taxpayer spending it authorizes and no ROI requirements.”

It does not improve US national security, but is instead a “huge spending bill, funded by American taxpayers’ money, giving corporations and communist China anything they want while American workers and American families get little in return,” he said .

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