Congress Passes Bill To Boost U.S. Semiconductor Chip Production and China Competition, Sending It For President's Signature
After a year of legislating and debating, on Thursday, July 28th, Congress passed the Chips and Science Act, a slimmed down version of the U.S. Innovation and Competition Act (USICA) that focuses on U.S. semiconductor chip production. The Senate passed the bill on Wednesday with a 64-33 vote including 17 Republicans.
Shortly afterward, the bill passed in the House, 243-187, with all Democrats and 24 Republican voting for the bill.
After the vote, President Biden delivered remarks, stating “It is exactly what we need to be doing to grow our economy right now…I look forward to signing this bill into law.”
The final bill includes more than $52 billion for U.S. companies producing computer chips, as well as billions more in tax credits to encourage investment in chip manufacturing. It also provides tens of billions of dollars to fund scientific research and to spur the innovation and development of other U.S. technologies. The bill also establishes innovative technology hubs in regions throughout the nation.
The earlier Senate bill, USICA, allocated $250 billion to semiconductors and American research and development. The House passed a similar bill with provisions on climate change and immigration. A Senate-House conference committee had been working to resolve differences between the Senate and House versions of the larger bill. After two months the conference committee failed to reconcile the two bills aimed at improving U.S. competition with China. With midterms around the corner and soaring inflation, lawmakers were eager to pass the slimmed-down bill before the August recess.
For more information and updates on CHIPS for America Act and more manufacturing legislation, please bookmark our Manufacturing Legislation Tracker.
U.S. Senate Passes WRDA Bill
The Senate passed the Water Resources Development Act (WRDA) last week by a vote of 93-1. WRDA, which passed the House earlier this summer, authorizes key projects and studies to tackle water resources challenges across the country. Now the House and Senate must conference the two versions of the bill before it can be signed into law. For more information on WRDA and other similar water quality legislation, please visit NEMWI’s Great Lakes and Water Legislative Tracker which can be found here.
The Senate Appropriations Committee released the Chairman’s marks of the twelve annual appropriations bill late last week. The bills, which total nearly $1.7 trillion in discretionary spending in FY 2023, include $653 billion in non-defense spending, a 10.1 percent increase over FY 2022, and $850 billion in defense spending, an 8.7 percent increase over FY 2022, which is consistent with the bipartisan National Defense Authorization Act (NDAA) passed by the House.
The package of bills also includes $21 billion in emergency supplemental funding to provide the necessary resources to prepare for the next phase of the COVID-19 pandemic and to address other emerging diseases that pose a significant threat to public health. While the Appropriations Committee has not announced any other future actions on these bills, and it is unlikely that they will be considered by the full Senate, this package of legislation will be an important place marker for future negotiations in resolving the FY 2023 budget process.
NEMWI continues to monitor the appropriations cycle. To view NEMWI’s FY 2023 Appropriations Tracker which keeps tabs on key appropriations accounts important to the Northeast and Midwest regions, please visit here.
Senate Democrats Announce Deal on Reconciliation Bill
Senate Democrats last week announced that they have come to an agreement to add the Inflation Reduction Act of 2022 to the FY 2022 Budget Reconciliation bill and that it’s their goal to vote on the package this week. According to the Committee for a Responsible Federal Budget, key components of the Inflation Reduction Act include:
The bill’s revenue provisions include (over ten years):
15 Percent Corporate Minimum Tax - $315 billion.
IRS Tax Enforcement Funding - $125 billion.
Closure of Carried Interest Loophole - $15 billion.
Methane Fee, Superfund Fee, Other Revenue - $20 billion.
The bill’s health savings provisions include (over ten years):
Repeal Trump-Era Drug Rebate Rule - $120 billion.
Drug Price Inflation Cap- $100 billion.
Negotiation of Certain Drug Prices - $100 billion.
The bill’s spending provisions include (over ten years):
Energy and Climate - $385 billion:
Clean Electricity Tax Credits - $160 billion.
Individual Clean Energy Incentives - $35 billion.
Clean Manufacturing Tax Credits - $35 billion.
Clean Fuel and Vehicle Tax Credits - $35 billion.
Other Climate and Energy Spending - $120 billion.
Health Care - $100 billion:
Extension of Expanded ACA Subsidies (three years) - $65 billion.
Part D Re-Design, LIS Subsidies, Vaccine Coverage - $35 billion.
The package also includes $305 billion for deficit reduction activities aimed at lowering inflation.
The 2022 State of the Great Lakes (SOGL) Report Released
The United States and Canadian Governments last week released two key reports on the Great Lakes: the State of the Great Lakes 2022 Report and the 2022 Progress Report of the Parties. These two reports, which are required by the Great Lakes Water Quality Agreement, express both countries’ commitment to work together to restore and protect their shared natural resource.
The SOGL report, which can be viewed here, provides a summary of the health of the Great Lakes using indicators of ecosystem health, such as drinking water, fish consumption, and beach closures. The Progress Report of the Parties, which can be viewed here, describes recent achievements in restoring and protecting Great Lakes water quality and ecosystem health.
Additionally, content from these two reports will be the focus of discussion at the 2022 Great Lakes Public Forum in Niagara Falls, Ontario, Canada from September 27 to 29, 2022. For more information or to register for the Public Forum, please visithere.
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