Rep. Courtney Votes Lower Costs, Power American Economic Independence, and Fuel the Next Generation of Research and Innovation
Press Release
Today, Congressman Joe Courtney (CT-02) voted in favor of historic legislation to strengthen Connecticut families' financial future, boost America's research advantage and manufacturing supply lines, and safeguard our economic and national security for generations to come. The CHIPS and Science Act (H.R. 4346) will deliver a powerful investment in America's global competitiveness--creating jobs, slashing kitchen table costs, ending dependence on foreign manufacturers, and turbocharging American innovation. The CHIPS and Science Act was passed in the Senate earlier this week, and Rep. Courtney and the House passed it today by a vote of 243-187-1. Now, the CHIPS and Science Act heads to the President's desk to be signed into law.
"The pandemic exposed some serious vulnerabilities in America's manufacturing chains and supply lines, and there's no better example of that than the worldwide shortage of semiconductor chips," said Congressman Courtney. "Semiconductor chips are essential components in all sorts of products that make our lives, our economy, and our national security apparatus tick--from cell phones, cars and appliances, to critical defense technologies. By now, everyone is familiar with the slow-down and retraction that has crept across industries around the globe as COVID disrupted semiconductor production, and as nations began hawkishly guarding their supply. We were given a glimpse at what offshoring semiconductor production would cost us in an emergency, and we cannot allow ourselves to be put in that position again. The CHIPS and Science Act lays the groundwork for future economic and national security, and for the next great boom in American scientific innovation and job creation. We've heard it for months now, but if there's one entity that was rooting hard against our ability to get this done, it's competitors like China--I was proud to send the CHIPS and Science Act to the President's desk today."
A nationwide shortage of semiconductor chips has severely disrupted American manufacturing--slowing down production, spiking prices, and increasing dependence on unfriendly foreign nations. Only 12% of semiconductor chips are currently manufactured domestically--a dramatic drop from 37% in the 1990s--while foreign competitors are investing heavily to dominate this industry, which has become increasingly important to national security. Other nations have also begun to outpace the United States' research advantage, threatening American preeminence in technology and scientific innovation.
The CHIPS and Science Act will reverse these dangerous trends, reasserting America's economic independence and scientific dominance. Specifically, the CHIPS and Science Act:
Creates Incentives to Produce Critical Semiconductors Here at Home
The CHIPS and Science Act includes the Creating Helping Incentives to Produce Semiconductors (CHIPS) for America Fund, a $52.7 billion program that will reestablish the domestic production of semiconductors--a critical step in strengthening our manufacturing supply lines after vulnerabilities were exposed during COVID-19. The CHIPS for America Fund includes:
Semiconductor Manufacturing Incentives--$39 billion for assistance to build, expand, or modernize domestic semiconductor manufacturing facilities and equipment, including $2 billion specifically for legacy chip production to advance economic and national security interests.
Support for Research and Development--$11 billion allocated for Department of Commerce research and development programs and workforce development initiatives including the National Semiconductor Technology Center (NSTC), National Advanced Packaging Manufacturing Program and other R&D and workforce development programs.
Tax Credits to Incentivize Investments in Advanced Manufacturing--Establishes a 25 percent investment tax credit to incentivize construction and modernization of semiconductor manufacturing facilities.
The CHIPS for America's Defense Fund--$2 billion to the Defense Department for microelectronic research and development as well as semiconductor workforce training.
The CHIPS for America International Technology Security and Innovation Fund--$500 million to the State Department, in coordination with USAID, EXIM Bank, and DFC, to support international information and communications technology security and semiconductor supply chain activities.
The CHIPS for America Workforce and Education Fund--$200 million to the NSF for microelectronics workforce development.
Supports R&D to Turbocharge American-led Ideas, Innovation, and Job Creation
The CHIPS and Science Act includes substantial new resources to support advanced research, STEM education, and the purchase of major research equipment at the National Science Foundation (NSF), the Department of Energy, the National Institute for Standards and Technology (NIST), and NASA. This funding will help America retain its advantage in scientific research, train the next generation of skilled engineers, scientists, researchers, and others, and will help spur new job creation.
New Support for the National Science Foundation (NSF)--$81 billion to the NSF, including for research and related activities, STEM education at all grade levels, and the purchase of major research equipment.
Increased Funding for Next-Generation Energy Development and Research--$50.3 billion to the U.S. Department of Energy's Office of Science specifically to advance research and development on programs ranging from basic energy science research programs to fusion energy, high energy physics programs, sustainable transportation and industrial emissions reduction technologies, advanced scientific computing research initiatives, and more.
Increased Support for Skilled Manufacturing Workforce Development--$10 billion for the National Institute of Standards and Technology (NIST), including $2.23 billion for the Hollings Manufacturing Extension Partnership (MEP)--a program that has already seen success in Connecticut through the CONNSTEP workforce development program--and $829 million for the Manufacturing USA Program, a national network of manufacturing innovation institutes. The bill also directs NIST to establish a voluntary National Supply Chain Database within MEP to help recognize supply chain disruptions early-on through evaluations of manufacturing capabilities.
New Funding for Job-Creating Hubs--$11 billion in investments to job-creating hubs. The bill directs the Department of Commerce to create 20 geographically distributed Regional Technology Hubs to focus on technology development, job creation, and expanding U.S. innovation capacity.
Re-Investing in Bold Ideas and American Potential at NASA--The bill establishes a Moon to Mars Program at NASA, including Artemis missions to the Moon, to achieve human exploration of Mars. It amends the code to extend the International Space Station (ISS) through 2030 and ensures crew time and resources are used to reduce human risk on long-duration spaceflights, and directs NASA to develop and launch a space-based infrared survey telescope capable of detecting near-Earth objects.
Includes Critical National Security Provisions, and Protections for Taxpayers and Consumers
The CHIPS and Science Act represents a historic investment by the federal government into the future economic stability and national security of our country, and into the livelihoods and prosperity of its citizens. The bill includes important provisions to ensure that this investment is made on behalf of American workers and families, including:
A Fair Wage for American Workers--The bill outlines that workers hired for the construction of CHIPS must be paid the prevailing wage.
A Prohibition on Stock Buybacks and Dividends--The CHIPS and Science Act prohibits companies from using awarded funds through the CHIPS program for stock buybacks or payment of dividends.
Prevents New Semiconductors from Supporting Competitors and Bad Actors--The expansion claw back in the bill requires the recipients of federal financial assistance to not engage in certain material expansions of semiconductor manufacturing in countries of concern, including China, North Korea, Iran, and Russia. Any company receiving federal financial assistance through the CHIPS program is required to notify the Department of Commerce of any plans for significant transactions that may violence the agreement.
Tight Federal Oversight of Investment--The legislation retains tight Congressional oversight of the federal funds provided to support the domestic production of semiconductors through the CHIPS Act.
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