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President Biden signs CHIPs Act, says bill will bolster supply chain

Joe Biden
Posted at 8:11 AM, Aug 09, 2022
and last updated 2022-08-09 11:00:47-04

President Joe Biden signed the CHIPs Act into law on Tuesday, providing $280 billion in funding to attract more chip manufacturers to the US.

The bill includes incentives and grants for producers of microchips.

The Congressional Budget Office projected the bill will add $80 billion to the federal deficit.

The bill passed by a 64-33 margin, with Sen. Bernie Sanders joining 32 Republicans in opposition to the bill. The bill then went to the House, where the entire Democratic majority and 24 Republicans approved the bill.

“As Americans are worried about the state of the economy and the cost of living, the CHIPS bill is one answer: it will accelerate the manufacturing of semiconductors in America, lowering prices on everything from cars to dishwashers,” Biden said. “It also will create jobs – good-paying jobs right here in the United States. It will mean more resilient American supply chains, so we are never so reliant on foreign countries for the critical technologies that we need for American consumers and national security.”

The CHIPs Act was among several recent legislative victories for Biden.

On Sunday, senators passed the Inflation Reduction Act. Democratic senators estimate that the legislation would reduce the federal deficit by $369 billion over the next 10 years by closing taxing loopholes, bolstering IRS enforcement and executing a minimum 15% corporate tax.

In return, the legislation would supply $369 billion in spending to address climate change and an additional $64 billion to grow the Affordable Care Act.