How Trump Could Scrap CHIPS Act Funding
Public Policy & Regulation attorney Greg Louer was interviewed by fDi Intelligence about the future of CHIPS and Science Act (CHIPS Act) grants under the Trump Administration. President Donald Trump has called for Congress to repeal the law, which authorized funding to support domestic semiconductor manufacturing. Though the law maintains bipartisan support – rendering a repeal unlikely – questions remain regarding the nearly $40 billion grant program established under it. Mr. Louer explained that funds already awarded are safe, as the government can only recoup disbursed money following a "clawback event," statutorily defined as investing in or entering licensing agreements with companies in countries of concern such as China. On the other hand, funds not yet awarded could be redirected, and funds awarded but not yet disbursed face the most uncertainty. However, Mr. Louer commented, though a change in the executive does sometimes affect federal funding and grants, he does not foresee disruptions here.
"There are varying opinions about how safe the program is or how much volatility it may be subject to," he said. "But I don't necessarily see material changes happening to the CHIPS program that will dramatically disrupt [its] security."