February 2, 2022
By David Shepardson
WASHINGTON (Reuters) – The U.S. House of Representatives will hold a procedural vote on Wednesday on a multibillion-dollar bill aimed at increasing American competitiveness with China and boosting U.S. semiconductor manufacturing, which would tee the legislation up for full approval by the chamber.
Democratic President Joe Biden’s administration has been working to persuade Congress to approve the bill, which includes $52 billion to subsidize semiconductor manufacturing and research, as shortages of the key components used in autos and computers have been exacerbated by supply chain bottlenecks.
If the procedural vote succeeds in the narrowly Democratic-controlled House, the full chamber would seek to vote on the full bill on Friday after considering a number of amendments.
The bill has several trade provisions and would also authorize $8 billion in U.S. contributions to the Green Climate Fund, established by the Paris Agreement on climate change, to help developing countries cope.
Republicans have proposed an amendment to strip that funding, while three Democrats want to boost it by $3 billion.
House Speaker Nancy Pelosi last week said the 2,900-page bill, dubbed the America Competes Act, would “supercharge” investment in chips and boost U.S. manufacturing and research capacity, as well as advance American competitiveness and leadership.
House Republicans complained on Wednesday that Democrats did not include them in drafting the legislation. They harshly criticized the climate provisions and said they could be used to help China.
“Republicans are a strong ‘no,’” said Representative Michael McCaul.
Representatives Alexandria Ocasio-Cortez and Cori Bush filed an amendment last week that would bar semiconductor companies receiving government subsidies from paying dividends or repurchasing company stock.
The Senate passed the U.S. Innovation and Competition Act on a 68-32 vote in June. That legislation includes $52 billion to increase domestic semiconductor production and authorizes $190 billion for U.S. technology and research to compete with China.
The House bill authorizes $45 billion to strengthen supply chains and manufacturing of critical goods for health, communications and other sectors.
If the House bill passes, Senate and House members will have to meet to reconcile differences in their respective bills. The final version would go back to both chambers for full approval and then, should that legislation pass, to Biden for his signature.
(Reporting by David Shepardson; editing by Jonathan Oatis)
Source: One America News Network
