A global one shortage of computer chips it has made it harder for consumers to get their hands on current cars, computers, and other necessities, so Congress is looking to push the U.S. government’s billions of dollars in chip manufacturing and research.
Both the House and the Senate have done so passed important legislation in this regard, and the effort is one of the last opportunities for legislators before the November elections to show voters that they are addressing those of the nation tense supply chains.
They now have to resolve considerable differences between the two bills. And Senate Republicans are already deepening before negotiations formally begin.
President Joe Biden has made semiconductor legislation a top priority, but he will need the support of 10 Senate Republicans, and perhaps more, to bring a bill to his desk. Republican Senate leader Mitch McConnell underscored this point when congressional leaders recently announced which lawmakers will be on the committee working to reconcile the two bills.
“Without major concessions and changes from House Democrats, this legislation has no chance of becoming law,” McConnell said.
House Democrats say their voices should be heard during negotiations.
“We need to make sure everyone gets involved,” said Suzan DelBene, a Washington Democrat who is chairing the New Democratic Coalition, a group of 19 members involved in the negotiations. “We have a strong bill in the House, and I think there are important components that the Senate should also consider.”
Where things are
House and Senate leaders have selected lawmakers to join a committee tasked with merging the two bills into one.
House Speaker Nancy Pelosi elected 49 Democrats and one Republican, MP Adam Kinzinger of Illinois, the only GOP member to vote on the House bill. Republican House Leader Kevin McCarthy selected 31 Republicans for the committee.
McConnell and Democratic Senate leader Chuck Schumer each elected 13 senators.
The House has approved its participants, while the Senate still has some procedural work to do before it can do so.
He Senate bill Expenditure is expected to increase by about $ 250 billion over 10 years. The House bill would increase spending by more than $ 400 billion over the period.
Where there is a lot of agreement
Senate and House bills allocate more than $ 52 billion for semiconductor production and research. Federal government grants and loans would subsidize part of the cost of building or renovating semiconductor plants.
“Chip financing is absolutely the basis of this bill: it’s a bipartisan foundation,” said Josh Teitelbaum, a senior lawyer for Akin Gump, a law firm and lobbying firm. “I think that’s what is driving this towards the finish line.”
Some overlap, but key differences
Both bills authorize a large increase in spending on the National Science Foundation, but have different priorities for research receiving funding.
The Senate bill provides $ 29 billion over five years to a new leadership focused on strengthening U.S. leadership in artificial intelligence, semiconductors, robotics, and other cutting-edge technologies.
The House bill provides $ 13.3 billion over five years to a new direction for science and engineering solutions. He lists climate change, environmental sustainability, and social and economic inequality as part of management’s focus.
Both sides will have to finalize their competing views for the National Science Foundation and the new technology directorate.
The two bills also establish regional technology centers: the Senate spends $ 10 billion on the program and the House spends $ 7 billion. The Senate bill calls for 20 of these centers, while the House bill authorizes at least 10 of them.
The initial money would go to regional organizations looking to move forward on a variety of economic and national security priorities.
The approach has the bipartisan support of legislators with large rural and minority constituencies who want to make sure money is not concentrated in universities or communities where much technological research is already being done.
Where there are big differences
Bills diverge on supply chain issues, trade, immigration and climate change, to name a few areas of disagreement.
One of the most important articles is a $ 45 billion program in the House bill to improve supply chains in the U.S. There was no such provision in the Senate bill. The money would provide grants, loans, or loan guarantees to companies, local governments, and tribes trying to build or relocate manufacturing plants that produce critical goods.
“This is a real area of focus for businesses and for communities that want to try to get manufacturing back on track,” Teitelbaum said. “There is a lot of interest in including this funding in the final package.”
Another big difference is in the trade. The House is re-authorizing a program that provides training and financial assistance to those who lose their jobs or have their hours cut due to increased imports. The Senate does not have this provision.
“It will not move without trade adjustment assistance,” Rep. Earl Blumenauer, D-Ore., Said of the bill.
Meanwhile, the Senate bill includes a trade provision that would exclude more products from tariffs that the Trump administration applied to goods imported from China. These exclusions have almost all expired. The Senate bill restores them, a priority for business groups such as the U.S. Chamber of Commerce.
The House bill addresses immigration, while the Senate bill does not. It would create a new visa category for entrepreneurs and allow those with an interest in successful businesses to apply to become legal permanent residents.
The House bill, unlike the Senate bill, also touches on climate change. It spends $ 8 billion on a fund that helps developing countries adapt to climate change. This could be a no-brainer for Republicans, who are opposed to using U.S. taxpayer money for this purpose.
No one expects negotiations to be easy.
“It’s hard for me to tell my friends and voters,” said Sen. John Cornyn, a Republican from Texas, “that when the White House is in favor of something, when Democrats are in favor of something, Republicans they are in favor of something, the House is in favor, and the Senate is in favor, it seems we can’t do it yet. But I hope we take this opportunity. “
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