House Debates Supply Chain Semiconductor Bill
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Democratic leaders in the U.S. House of Representatives signaled the likelihood of advancing legislation meant to enhance supply chain connectivity as early as this month.
House-passage of the America COMPETES Act would set up negotiations with Senate counterparts who already advanced their version, titled the U.S. Innovation and Competition Act, or USICA.
FEB. 4 UPDATE: Bill passes House
COMPETES is an acronym for Creating Opportunities for Manufacturing, Pre-Eminence in Technology and Economic Strength.
Competes Act by Transport Topics
Speaker Nancy Pelosi (D-Calif.) called on colleagues to advance the supply chain-centric legislation, which is likely to garner a certain degree of bipartisan support in the chamber.
The speaker argued the so-called China competition bill would “address supply chain disruptions that push up costs for families, bring back [semiconductor] chips production to America and ensure … that the U.S. leads the way on semiconductor fabrication.”
“COMPETES advances manufacturing at home in our country and strengthens our supply chains. The [COVID-19] pandemic has exposed the vulnerabilities of the global supply chains that rely on other countries,” Pelosi added.
Transportation and Infrastructure Committee Chairman Peter DeFazio (D-Ore.) is among the backers of the bill.
“It’s beyond time for the U.S. to place itself on a path to compete at a global level in the modern era, and that includes creating long-term economic growth and quality jobs for the American people,” DeFazio said. “I’m pleased the America COMPETES Act includes provisions from my committee that would authorize $4 billion in new grants to help communities that have historically been left behind.”
Specifically, the House bill would authorize $45 billion in grants, loans and loan guarantees meant to improve freight connectivity. Key provisions are meant to enhance semiconductor manufacturing capabilities as well as establish a Commerce Department post tasked with monitoring goods along commercial corridors.
The Biden administration has called for passage of the bill. Commerce Secretary Gina Raimondo insisted the House bill’s provisions would alleviate supply chain woes and boost access to vital computer communication equipment installed in hardware.
“Semiconductors keep our economy running and are increasingly important as our economy becomes more digital. Rebuilding our domestic manufacturing industry will keep our country safe, increase our global competitiveness, shore up our supply chains, reduce costs and create good-paying manufacturing jobs right here at home,” said the secretary.
“The House bill builds on the important bipartisan work in both the House and Senate to come to agreement on the Senate-passed U.S. Innovation and Competition Act. I talk every day with lawmakers from both sides of the aisle and in both the House and Senate about the urgent need to advance this legislation,” Raimondo added. “This is an issue with bipartisan support and I look forward to doing what I can to get this bill to the president’s desk.”
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Separately, congressional funding leaders have yet to finalize a fiscal 2022 appropriations “omnibus” bill that would avert a partial government shutdown. Temporary funding for most federal agencies expires Feb. 18. The leadership of the House and Senate appropriations committees signaled the potential for ongoing negotiations meant to arrive at a final version of a funding bill prior to the deadline.
Pelosi indicated that ensuring funding for federal agencies for the remainder of the fiscal year is a top priority for her caucus. As the speaker put it, “The House must pass a strong omnibus. This omnibus, forged under the leadership of Appropriations Committee Chair Rosa DeLauro, will address critical priorities for our country, including for our national security and for communities at home.”
In fiscal 2022 legislation introduced last year by Senate Democrats, the Federal Motor Carrier Safety Administration would receive $288 million for safety operations and programs. FMCSA’s safety grants would receive $393.8 million under the bill. The overall bill would provide $29.1 billion in discretionary budget authority for the U.S. Department of Transportation, a $3.8 billion increase over the enacted fiscal 2021 level. The House passed its fiscal 2022 transportation funding bill.
