The legislation will provide $ 52 billion to support domestic chip research and $ 45 billion to improve supply chains.
Republicans in the House of Representatives criticized a Democrat-led bill aimed at making the U.S. economy more competitive as it was filled with concessions to China, throwing up obstacles to a measure that would also help the domestic semiconductor industry.
Democrats are aiming for a vote in Parliament this week on their version of the law, which is intended as a means of strengthening American production and research and development.
While Democrats have the votes to push the law through Parliament, the Republican opposition will increase the difficulty of negotiations ahead to find a compromise with the Senate, which passed a similar $ 250 billion measure with bipartisan support last June.
Legislative provisions include $ 52 billion to support domestic chip research and production amid a global semiconductor shortage, as well as $ 45 billion authority to improve the country’s supply chains to prevent critical goods shortages. It would also create programs to increase science, technology, engineering and math education and training.
The Biden administration supports the adoption of Parliament’s legislation. If an agreement is reached between Parliament and the Senate, the resulting legislation will mark a significant victory for President Joe Biden, as his party faces the potential to lose control of Congress in the November midterm elections.
The bill is set for a procedural vote in the floor of the house on Wednesday with a vote on passage likely Friday, according to a Democratic aide.
The House bill has some significant differences from the Senate’s version, including provisions on trade. While Senate bills have GOP support, Republican leaders in the House urged their members to vote against it when it comes to the floor.
‘Look hard at China’
Representative Michael McCaul, a Republican from Texas who sponsored the $ 52 billion grant in aid to the chip industry, said Parliament’s bill does not include any meaningful restriction on attempted theft of intellectual property or addresses China’s human rights record.
“This bill is an attempt to take a hard look at China without taking any real action,” said GOP Representative Steve Chabot of Ohio. “This is a desperate political trick in anticipation of the middle ground.”
They and other Republicans are also against some of the climate spending that is in the law.
Trade Secretary Gina Raimondo has lobbied GOP lawmakers. Her message to Republicans has been that while they may not like all parts of the bill, it is important to pass it and come to negotiations with the Senate where they can make changes.
Senator Todd Young, a Republican from Indiana who was the main sponsor of the Senate bill with Majority Leader Chuck Schumer, said he had “qualified optimism” that the issues could be resolved in negotiations between the two chambers.
“I’ve talked to a number of my former colleagues in the House, and although they are publicly – and I think privately – disappointed with the House’s work product, they understand that the reason it was done that way was to speed up completion. , ” he said. “And they hope we can produce something they can vote on in the end.”