President Biden signs CHIPS Act to boost semiconductor production

Following successful votes in the Senate and House of Representatives, President Joe Biden has signed the CHIPS and Science Act into law. The $280 billion measure will provide significant financial assistance to American semiconductor firms. It sets as…

Senate passes sweeping climate-focused Inflation Reduction Act

After more than a year of infighting, President Joe Biden’s climate agenda has cleared a significant hurdle. On Sunday, Senate Democrats passed the Inflation Reduction Act of 2022 in a 51-50 decision that went along party lines and saw Vice President Kamala Harris cast the tie-breaking vote, reports The Washington Post. If passed by the House, the 755-page bill would authorize the single largest expenditure to combat climate change in the nation’s history. In all, the legislation calls for $370 billion in spending to reduce US greenhouse emissions by approximately 40 percent by the end of this decade.

Among the climate change provisions most likely to affect consumers is a reworked federal EV tax credit. The Inflation Reduction Act would provide up to $7,500 in subsidies for electric SUVs, trucks and vans that cost less than $80,000 and cars under $55,000. It would also allow people to claim up to $4,000 when buying a used EV. In both cases, an income ceiling would prevent those who make more than the average American from taking advantage of the legislation.

On top of EV subsidies, the $370 billion in investments set aside by the bill would incentivize the building of wind, solar and other renewable power sources. The act also calls for the creation of a $1.5 billion program that would pay companies that reduce their methane output.

With Sunday’s vote, the Inflation Reduction Act now moves to the House, which will return from its summer recess on Friday. For much of 2021 and the first half of 2022, President Biden’s Build Back Better plan looked doomed to go nowhere due to opposition from Senator Joe Manchin of West Virginia. In late July, however, Manchin and Senate Majority Leader Chuck Schumer announced they had come to a compromise. 

In exchange for his support, the Inflation Reduction Act includes a provision that would see the federal government reinstate canceled oil and gas leases in the Gulf of Mexico and Alaska’s Cook Inlet. While that concession upset environmentalists, it’s not expected to undo the good the Inflation Reduction Act is poised to do for the environment. According to one estimate by Princeton University’s Zero Lab, the bill could reduce US greenhouse emissions by about 6.3 billion tons through 2032.

Senate bill aims to restore net neutrality, including throttling safeguards

Politicians are making another attempt to restore net neutrality rules. Democrat Senators Ed Markey and Ron Wyden have introduced a Net Neutrality and Broadband Justice Act that would classify broadband internet as a telecom service under Title II of the Communications Act. The move would let the FCC restore net neutrality protections repealed by the Ajit Pai-era Commission in December 2017, including safeguards against blocking, throttling and paid prioritization for data traffic.

The bill would also help the FCC institute policies that improve accessibility, safety and “close the digital divide,” according to Markey’s statement. Another 28 senators, including independent Bernie Sanders and prominent Democrats like Cory Booker and Elizabeth Warren, are co-sponsors. California Representative Doris Matsui is sponsoring an equivalent bill in the house. The measure has the endorsement of civil rights and activist groups like the American Civil Liberties Union and Electronic Frontier Foundation.

Democrats have tried to revive net neutrality before with efforts like 2019’s Save the Internet Act. As Markey explained to The Register, though, they’re trying a different strategy. The new bill is purposefully short at just two pages long — that brevity gives the FCC the regulatory power to adapt to the “changing nature of the internet,” the senator said. Previous attempts tried to enshrine specific rules in law.

The Act’s survival is far from certain, though. It needs to advance beyond a Senate committee, and Congress will go into recess during August. A Senate vote might not succeed unless Democrats can pass the 60-vote threshold needed to avoid a filibuster, and the House bill isn’t guaranteed to pass if it comes up for a vote after the November midterm elections.

The FCC isn’t guaranteed to resurrect net neutrality even if the bill becomes law, for that matter. The Commission is currently deadlocked with two Democrats and two Republicans. Nominee Gigi Sohn still hasn’t been confirmed. An FCC vote on neutrality-related policy changes could easily fail, even though the agency would have the authority (and effectively the obligation) to reinstitute consumer protections.

House passes CHIPS Act, preparing semiconductor bill to become law

Legislation aimed at boosting US chip production has cleared its last major hurdle. The House of Representatives has passed the CHIPS and Science Act in a 243-187-1 vote, leaving just the reconciliation process and President Biden’s signature before the bill becomes law. The equivalent Senate measure passed 64-33 in a vote one day earlier.

The Act is a dialed-down version of previous bills, but promises significant help for American semiconductor manufacturing. It offers more than $52 billion for US chipmakers as well as tax credits for domestic factories. In a statement, the President claimed the bill would lower product costs, create “high-paying” jobs and reduce the country’s dependence on foreign chip sources.

Earlier approaches drew objections from both sides of Congress. Republicans were concerned the reconciliation bill would include unrelated climate, health and tax elements. They also said it risked funding Chinese manufacturing. Independent Senator Bernie Sanders, meanwhile, has expressed concerns the bill might reward chip manufacturers already rolling in cash, and was the only non-Republican in the Senate to vote against it.

The CHIPS and Science Act isn’t expected to affect production in the short term. It will take companies years to build new factories and otherwise upgrade facilities to tackle chip shortages and improve manufacturing independence. If things play out as its supporters imagine, however, CHIPS will hopefully decrease the severity of future supply chain crunches.

Senate passes bill to boost US chip manufacturing

The US government just crossed a key milestone in its bid to improve domestic chip production and compete with rivals like China. CNBCreports the Senate has passed the CHIPS and Science Act, a bill to fund and incentivize American semiconductor manufacturing, in a 64-to-33 vote. The measure includes over $52 billion for US firms making chips, additional funding for further technology development and tax credits to spur manufacturing investments.

The Act, also known as “CHIPS-plus,” is a scaled-back version of bills previously circulating through Congress. Those efforts received opposition across the political spectrum. Republicans objected to earlier measures with accusations that Democrats were pushing a partisan reconciliation bill that would include climate, medicine and tax considerations. There were also concerns funding might inadvertently reach China. Independent Senator Bernie Sanders, meanwhile, was concered that a past variant was a “blank check” to already-profitable chip producers. 

The House will still have to pass and help reconcile counterpart legislation before President Biden can sign the bill into law. That’s considered very likely, however, as the Senate has cleared a 60-vote filibuster threshold. The House is expected to pass its version when Democrats only need to wield their majority to succeed.

The expected law is unlikely to have an immediate effect when new factories take years to complete, and upgrades aren’t necessarily quicker. It won’t address near-term chip shortages. Even so, CHIPS could play an important role in American tech manufacturing. On top of reducing the chances of future shortages, it could reduce the dependence on Taiwan and other semiconductor hubs threatened by countries like China. While there are no guarantees the Act will lead to more jobs and lower prices, it might help the US compete in an increasingly fierce market.