The House of Representatives passed the Creating Helpful Incentives to Produce Semiconductors (CHIPS) and Science Act on Thursday, despite opposition from Republicans who argued that the bill would funnel billions in taxpayer money toward corporations.
The House passed the bill in a 243-187 bipartisan vote, while it passed the Senate on Wednesday 64-33. The bill will dedicate $52 billion in government subsidies for companies that make computer chips, provide $24 billion in tax credits, and put forth $170 billion in scientific research over the next five years. Shortly after the bill passed, Senate Majority Leader Chuck Schumer (D-NY) and Senator Joe Manchin (D-WV) announced they had compromised on a bill that would raise taxes and fund climate change initiatives worth nearly $700 billion.
Prior to the vote, House Minority Leader Kevin McCarthy blasted the federal government for its spending and implored his colleagues to oppose the legislation.
“The Senate passed a bill that took a small, discretionary program and turned it into a $280 billion blank check, including $79 billion in mandatory spending on corporate welfare to be handed out to whoever President Biden wants,” McCarthy said from the House floor.
“I’m a no on the Senate CHIPS bill that will come to the floor today. I was a no last week. I was a no last night. And I will be the first no on the board today,” McCarthy said. “I encourage all my Republican colleagues to join me.”
Rep. Thomas Massie (R-KY) noted that even Senator Bernie Sanders (I-VT) was against the bill because it favors corporations.
“Senator @BernieSanders said the senate CHIPS Act is ‘a $53 billion bribe’ that semiconductor companies demanded in exchange for staying in the United States,” Massie tweeted. “He’s right. Taking money from working Americans and giving it to profitable corporations is immoral and won’t even work.”
Senator @BernieSanders said the senate CHIPS Act is “a $53 billion bribe” that semiconductor companies demanded in exchange for staying in the United States.
He’s right.
Taking money from working Americans and giving it to profitable corporations is immoral and won’t even work.
— Thomas Massie (@RepThomasMassie) July 28, 2022
House Majority Leader Steny Hoyer (D-MD) argued that the bill “bolsters domestic manufacturing, creates good-paying jobs, and fights inflation, advancing the #MakeItInAmerica agenda: education, entrepreneurship, infrastructure, and supply chain resilience.”
The CHIPS and Science Act bolsters domestic manufacturing, creates good-paying jobs, and fights inflation, advancing the #MakeItInAmerica agenda: education, entrepreneurship, infrastructure, and supply chain resilience. pic.twitter.com/zkkr9g8kDU
— Steny Hoyer (@LeaderHoyer) July 28, 2022
McCarthy also used his floor speech to warn against the Manchin-Schumer Inflation Reduction Act.
“They say they want to restore growth, but their new bill adds $700 billion in new taxes,” McCarthy added. “Do Democrats really believe spending hundreds and billions of tax dollars right now while pursuing and punishing productive investments in the long run will lower inflation?”
Related: Corporate Welfare Or Needed Investment To Beat China? Senate Passes Computer CHIPS Subsidy Bill