Senate Passes Anti-China Chips Bill
The Senate achieved the necessary "yes" votes to pass the U.S. Innovation and Competition Act Tuesday, as expected (see 2106040063). The vote was 68-31, with voting continuing, at approximately 6:25 p.m. EDT. S-1260, previously known as the Endless Frontier Act, includes $52 billion for U.S. chipmaking and $1.5 billion to implement the Utilizing Strategic Allied Telecom Act. The semiconductor money includes $49.5 billion to implement the Creating Helpful Incentives to Produce Semiconductors for America Act (see 2105210056).
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Prospects for House passage of S-1260 remain unclear. The chamber returns from recess June 14. The Science Committee plans to vote June 15 on the rival National Science Foundation for the Future Act (HR-2225), a House aide said. Committee Chairwoman Eddie Bernice Johnson, D-Texas, has raised objections about S-1260’s proposal to create a Technology Directorate within NSF (see 2104270045).
Senators voted 58-42 ahead of S-1260’s final passage against attaching an amendment from Sen. John Cornyn, R-Texas, to remove Davis-Bacon Act prevailing wage requirements for recipients of Chips for America Act funding. The chamber advanced 68-32 a S-1260 substitute from Senate Majority Leader Chuck Schumer, D-N.Y., that includes language from the American Drone Security Act (S-73), Merger Filing Fee Modernization Act (S-228), No TikTok on Government Devices Act (S-1143) and Advancing American AI Act (S-1353).
House Commerce Committee leaders highlighted S-1260’s impending Senate passage during a Tuesday Consumer Protection Subcommittee hearing on the Commerce Department’s FY 2022 request (see 2105280055). Committee Chairman Frank Pallone, D-N.J., hailed the White House’s semiconductor supply chain report (see 2106080008). Federal action to bolster the industry is important, he said. “A major global shortage of semiconductors has forced some manufacturers of automobiles and consumer electronics to idle or delay production.”
Commerce ranking member Cathy McMorris Rodgers, R-Wash., said the committee must “look at every available vehicle at our disposal … to boost American competitiveness and beat China.” Those actions should include “enacting a national privacy standard to strengthen data protection for Americans” and “enact a national framework for autonomous vehicles to enable the Department’s efforts to secure strong AV supply chains” in the U.S., she said. McMorris Rodgers touted the American Competitiveness of a More Productive Emerging Tech Economy Act. It would require the FTC and Commerce Department report on the impact of AI and other emerging technologies on U.S. businesses doing interstate commerce.