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WASHINGTON (AP) — A global shortage of computer chips has made it difficult for consumers to own cars, computers, and other modern-day necessities, so Congress wants to boost chip manufacturing and research in the US with billions of dollars from the US. federal government.
Both house and Senate He passed a major law on the issue, and the effort is one of lawmakers’ last opportunity before the November election to show voters they’re addressing the country’s strained supply chains.
Now they have to work on the important differences in the two bills. And Senate Republicans are already digging before negotiations officially begin.
President Biden has made semiconductor law a top priority, but he will need the 10th’s support. Senate Republicans, and maybe more, to bring a bill to his desk. Senate Republican leader Mitch McConnell highlighted the point where congressional leaders recently announced which lawmakers would serve on the committee that worked to reconcile the two bills.
“Without major concessions and changes house Democrats, this law has no chance of becoming law,” McConnell said.
house Democrats say their voices need to be heard during negotiations.
“We need to make sure that everyone is contributing,” said Suzan DelBene of D-Wash., head of the New Democratic Coalition, which has 19 members participating in the negotiations. “We have a strong bill” houseand I think there are important components there that Senate should think too.”
WHERE EVERYTHING HAPPENED
house and Senate The leaders elected their MPs to join a committee tasked with bringing the two bills together.
house Speaker Nancy Pelosi, 49 Democrats and one Republican, chose Representative Adam Kinzinger from Illinois, the only GOP member to vote house invoice. Republican house leader Kevin McCarthy selected 31 Republicans for the committee.
McConnell and the Democratic Senate Leader Chuck Schumer elected 13 senators each.
This house confirmed its participants, Senate there is some procedural work to do before doing that.
This Senate The bill is expected to increase spending by about $250 billion over 10 years. This house The bill would increase spending by more than $400 billion over the period.
WHERE THERE ARE MANY AGREEMENTS
This Senate and house The bills set aside more than $52 billion for semiconductor manufacturing and research. Grants and loans from the federal government will subsidize some of the costs of constructing or renovating semiconductor plants.
“Chip financing is definitely the foundation of this bill – it’s a bipartisan foundation,” said Josh Teitelbaum, senior adviser to Akin Gump, a law and lobby firm. “I think that’s what pushes this towards the finish line.”
SOME MUSIC BUT KEY DIFFERENCES
Both bills allow for a large increase in spending for the National Science Foundation, but they have different priorities for research that receives funding.
This Senate Bill provides $29 billion over five years to a new directorate focused on strengthening US leadership in artificial intelligence, semiconductors, robotics and other cutting-edge technologies.
This house Bill provides $13.3 billion over five years to a new directorate for science and engineering solutions. It lists climate change, environmental sustainability, and social and economic inequality as part of the directorate’s focus.
The two sides will have to unveil their competing visions for the National Science Foundation and the new technology directorate.
The two bills also create regional technology hubs. Senate allocated $10 billion to the program and house 7 billion dollars allocated. This Senate while the bill calls for 20 such hubs, house The invoice gives at least 10 authorizations.
Initial money would go to regional organizations looking to advance various economic and national security priorities.
The approach has bipartisan support from lawmakers with large rural and minority constituencies who want to ensure that money isn’t concentrated in universities or communities where a lot of technical research is already done.
WHERE ARE THE BIG DIFFERENCES
The bills diverge over supply chain issues, trade, migration and climate change, creating several areas of disagreement.
One of the big-ticket items is the $45 billion program. house In the US, there was no such provision in the bill to improve supply chains. Senate invoice. The money will provide grants, loans or loan guarantees to companies, local governments and tribes trying to build or relocate manufacturing facilities that produce critical goods.
“This is a real focus area for companies and communities that want to try to bring production back,” Teitelbaum said. “There is great interest in including this funding in the final package.”
Another stark difference is in trading. This house It reauthorized a program that provides training and financial assistance to those who lost their jobs or cut hours due to increased imports. This Senate there is no such provision.
“Trade will not act without adjustment aid,” said Earl Blumenauer, D-Ore Representative, of the bill.
Meanwhile, Senate The bill includes a trade provision that would exclude more products from the Trump administration’s tariffs on goods imported from China. Almost all of these exceptions are over. This Senate The bill, a priority of business groups like the US Chamber of Commerce, reinstates them.
This house While the law deals with immigration, Senate the invoice does not come. It will create a new category of visas for entrepreneurs and allow those with property rights in successful ventures to apply for legal permanent residency.
This house contrary to the invoice Senate The bill also addresses climate change. It dedicates $8 billion to a fund that helps developing countries adapt to climate change. This may not be the starting point for Republicans who object to using US taxpayers’ money for this purpose.
No one expects negotiations to be easy.
“I have a hard time explaining to my friends and my voters,” said Senator John Cornyn of R-Texas, “When the White House is for one thing, the Democrats are for something, the Republicans are for something. , house is in favor and Senate Although it is in its favor, we still do not seem to have succeeded. But I hope we make good use of this opportunity.”
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