America COMPETES Act

America COMPETES Act. The America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 is a major congressional initiative designed to bolster the nation's competitive edge against global rivals, principally the People's Republic of China. Enacted as Public Law 117-167 after reconciliation with the Senate's CHIPS and Science Act, the legislation provides extensive funding and policy directives for scientific research, semiconductor manufacturing, and supply chain resilience. Its passage marked a significant bipartisan effort to address perceived weaknesses in U.S. technological and industrial capacity.

Background and legislative history

The act originated from longstanding concerns in Washington, D.C. about Chinese advancements in critical technologies and strategic industries. It builds upon previous legislative efforts like the America COMPETES Act of 2007 and the American Innovation and Competitiveness Act. The House Science Committee, chaired by Representative Eddie Bernice Johnson, introduced the initial version in the 117th United States Congress. Concurrently, the Senate Commerce Committee advanced its own competitiveness bill, championed by Senators Chuck Schumer and Todd Young. After months of negotiation between the Democratic-controlled House and the evenly divided Senate, the final compromise package was merged with the CHIPS and Science Act and sent to the White House.

Key provisions and funding

The legislation authorized over $280 billion in appropriations, with roughly $52 billion allocated specifically for domestic semiconductor fabrication, including grants for companies like Intel and TSMC. It significantly increased authorized funding for key research agencies, including the National Science Foundation, the Department of Energy Office of Science, and the National Institute of Standards and Technology. The act established a new directorate for technology and innovation within the National Science Foundation focused on fields like artificial intelligence and quantum computing. Other provisions aimed to strengthen supply chains for critical minerals, support the Department of Energy's Advanced Research Projects Agency–Energy, and create regional technology hubs across the United States.

Related legislation and political context

The act is directly intertwined with the CHIPS and Science Act, which served as the legislative vehicle for the final compromise. Its development was heavily influenced by geopolitical tensions with China and the economic disruptions of the COVID-19 pandemic. It shares thematic goals with executive actions by the Biden administration, such as supply chain reviews conducted by the Department of Commerce. The legislative push also echoed elements of proposals from the Trump administration and recommendations from bodies like the Senate's USICA and the National Security Commission on Artificial Intelligence.

Impact and implementation

Following its signing by President Joe Biden, implementation fell to agencies like the Department of Commerce and the National Science Foundation. Major semiconductor companies, including Micron Technology and GlobalFoundries, announced expansions of U.S. manufacturing facilities. The CHIPS for America office within the National Institute of Standards and Technology began soliciting applications for fabrication incentives. The act also spurred increased federal investment in research partnerships with institutions like the Massachusetts Institute of Technology and the University of Texas at Austin, while the Department of Energy launched new initiatives at national laboratories such as Oak Ridge National Laboratory.

Criticisms and controversies

The legislation faced criticism from some members of the Republican Party, including Representative Frank Lucas, who argued its early versions contained extraneous climate change and social policy provisions. Fiscal conservatives, such as the Heritage Foundation, opposed the scale of government spending and industrial subsidies. Some analysts from the Cato Institute warned of creating a costly "corporate welfare" system for the semiconductor industry. Conversely, progressive lawmakers like Senator Bernie Sanders criticized the bill for providing grants to profitable Fortune 500 corporations without sufficient safeguards for workers and taxpayers.

Category:2022 in American law Category:United States federal legislation