- Trump called on Congress to remove the “horrible” act of $ 52 billion on Tuesday.
- This is unlikely that it will happen. There is little appetite to repeal it, and democrats like the law.
- In addition, a large part of the 2022 bill has already been set in motion.
President Donald Trump said to the congress on Tuesday to suppress a bipartite law of $ 52 billion designed to overeat the American semiconductor manufacturing industry.
“Your flea law is a horrible and horrible thing,” Trump said at a conference address on Tuesday evening. “You should get rid of the chip law, and anything, Mr. President, you must use it to reduce debt, or any other reason you wish.”
This landed with deaf noise among the Republicans who supported radical legislation two and a half years ago.
“I must admit that I was surprised,” Senator Todd Young of Indiana, the republican co-author of 2022 Chips and Science Act on Wednesday morning. “It was one of the greatest successes of our time.”
The bill included $ 39 billion in grants for the manufacture of flea in the United States, plus $ 13.2 billion for the research and development of semiconductor labor. The objective of the legislation was to make the United States less dependent on fleas manufactured in Taiwan, to create manufacturing jobs in the United States and to strengthen competition with China-something that was particularly important for national security republicans.
He exceeded the two chambers on a bipartite basis, gathering the enthusiastic support of the leader of the minority of the time, Mitch McConnell, as well as the support of 16 other GOP senators and practically all Democrats.
Trump specifically criticized subsidies, saying that he prefers to bring the manufacture of fleas to America via prices. “They take our money and they do not spend it,” said the president.
It is not because Trump asks Congress to repeal the law that this will happen – even if the Republicans control the two chambers and largely support the president’s agenda.
“ I would like to see what he will replace him with ”
It would be necessary not only unanimous support for the GOP, but the support of several Democratic senators, to obtain a bill of repeal by the Senate.
On the one hand, it is unlikely that the Democrats will go there.
“People already feel positive impacts and new economic energy in their cities in all corners of America, from Ohio to Arizona,” said the head of the Senate of the Senate, Chuck Schumer, in a statement. “I do not think that the president will find a lot of support for the congress to weaken this legislation.”
“I do not know what he is in,” said Bi Trump, Democratic Senator Ruben Gallego, whose original state of Arizona is home to a TSMC factory built with the funding of the Act chips.
Even among the Republicans, there is an hesitation in engaging in Trump’s last request.
The Republican senator John Cornyn of Texas defended the bill, saying that he “allowed Trump to announce an additional TSMC investment earlier this week.
Other GOP senators who voted for the flea law said they wanted to see more details of Trump before supporting the bill.
“I would like to see what he will replace him,” the journalists the Senator Lindsey Graham from South Carolina told journalists. “I want to bring a flea making here, but if it has a different way to do it, I am open -minded.”
“If there is a consensus on solving this problem in a better way, I am open to suggestions,” Senator Roger Wicker told Mississippi in Bi. “It was the first to have heard of this proposal.”
It is also true that the part of the Puces Act that opposes Trump has already been triggered in recent years. Young told journalists that the “part of the tokens” of the bill “had been mainly implemented” and that he contacted the White House to get more clarity on Trump’s position.
Before leaving office, the Biden administration allocated more than $ 33 billion in grants to 32 manufacturers and semiconductor suppliers.
To date, 20 companies have obtained legally binding agreements, which collectively represent approximately 85% of the total of allocated subsidies, has reported Bloomberg. However, only 11% of the allocated subsidies have been distributed so far: funds are dispersed while businesses reach certain detailed benchmarks in the agreements.
In November, a spokesperson for the Commerce Department told BI that the funding associated with a binding agreement could be canceled unless the company complies with the terms of the agreement. In the absence, they declared that the cancellation of financing would require an act of the congress.
“I expect the administration to continue to support this resilience and national security initiative of the supply chain,” said Young. “If he has to transform into a different model over a period of time, I am certainly open to this.”
Gallego argued that Trump’s comments could always have an impact on the semiconductor industry, even if the legislative repeal does not occur.
“If you are a business that is trying to move, or progress supplies to fleas in the United States, and you think there will be no money for the ACT chips, you cannot even start to commit, and you could start to watch other countries,” said Arizona Democrat.
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