Former President Donald Trump’s call to repeal the CHIPS and Science Act has ignited a fierce bipartisan debate over the future of U.S. semiconductor funding and national security.
Key Takeaways
- President Donald Trump urged lawmakers to repeal the CHIPS and Science Act during his first joint address to Congress of his second term.
- The CHIPS and Science Act, passed in 2022, allocated $280 billion for U.S. companies to produce computer chips among other goals.
- Trump criticized the Act, claiming it provides a free handout without economic return.
- Trump suggested repealing the Act to reduce debt.
- The Act was a significant bipartisan achievement for former President Joe Biden.
Trump’s Address to Congress
During his inaugural address to Congress for his second term, Donald Trump took aim at the CHIPS and Science Act. This legislation had previously seen bipartisan support under President Joe Biden’s administration, allocating $280 billion towards semiconductor and scientific advancement. Trump criticized the Act, arguing it was an ineffective handout with no tangible economic return, favoring redirecting the remaining funds to the national debt.
Trump has consistently opposed this Act throughout his presidency and campaign, labeling it as a useless expenditure. In his words, “Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars, and it doesn’t mean a thing.” This reflects his stance on prioritizing economic returns and reducing financial burdens on the nation.
The CHIPS and Science Act’s Goals
Passed in 2022, the CHIPS and Science Act aimed to boost America’s competitiveness by investing $280 billion, with $52 billion specifically for computer chip manufacturing. It intended to reduce U.S. dependence on foreign, particularly Chinese, semiconductor supplies, thus enhancing national security and fostering economic resilience. Biden regarded it as a major achievement of his administration, solidifying relationships across the aisle.
While several lawmakers strongly support the Act, viewing it as critical for future security and economic strategies, Trump’s criticism might influence some opposing views and calls for reallocation of funds.
Political Reactions and Backlash
Mike Johnson, Speaker of the House, had initially sided with Trump, suggesting the repeal of the Act back in 2024. However, after facing backlash, he withdrew his statement. He could be seen cheering on and standing in support of President Trump’s statements during his latest address, however. This instance demonstrates the contentious nature of the Act and how it continues to be a political flashpoint.
The push to repeal the CHIPS Act maintains its divisiveness, with Trump’s advocacy for repeal contrasting sharply against bipartisan support, reflecting strategic priorities and economic perspectives in national governance. This debate encapsulates broader themes present in the geopolitical landscape, where economic strategy, national security, and international relations converge.
Sources
1. Trump wants to kill $52.7 billion semiconductor chips subsidy law
2. Trump demands Congress repeal bipartisan CHIPS Act
