Illustration: Tiffany Herring/Axios
Sen. Todd Young, a key Republican supporter of the CHIPS and Science Act, is raising alarm after President Trump told Congress to "get rid" of the law.
Why it matters: The CHIPS and Science Act has broad bipartisan support and the Commerce Department has binding contracts with companies under it.
- During his speech to Congress on Tuesday night, Trump called the law "a horrible, horrible thing" and said tariffs are what will lead companies to manufacture semiconductors in the U.S.
- Trump suggested that House Speaker Mike Johnson should use "whatever is left" of CHIPS money to pay the country's debt.
Behind the scenes: A spokesperson for Young said Trump's comments are a departure from the administration's conversations with the senator's office.
- "We're seeking clarity on those comments as they are not consistent with the extensive conversations we've had with the administration about the many successes and future of the CHIPS program and how it helps with our shared goal of creating a robust domestic chips supply," the spokesperson told Axios.
Context: Commerce Secretary Howard Lutnick hedged during his confirmation hearing on whether the department would make good on the money it has promised in CHIPS contracts.
- Lutnick said the law needs review and did not commit to doling out the congressionally appropriated funds.
- Staff at Commerce's CHIPS offices have been fired, but sources told Axios some had been kept as money is still being actively doled out to companies.
- White House Office of Science and Technology Policy nominee Michael Kratsios said at his confirmation hearing that the law is "extremely important" for AI, but deferred to Lutnick on whether to honor existing CHIPS agreements.
The bottom line: CHIPS and Science Act funding is congressionally appropriated money and is required under the law to be distributed.
- But the Trump administration has shown it's comfortable not playing by the book and the money could be at risk.
