House Minority Whip Steve Scalise (R-LA) on Tuesday expressed concerns about a scaled-down bill aimed at providing funding for domestic semiconductor chip production, arguing that shifting spending to the mandatory side could have a negative impact on the nation’s debt and deficit.
The Louisiana Republican’s comments come just ahead of the Senate’s procedural vote on the measure, which is expected to include language to provide $52 billion in grants to incentivize domestic production, in addition to a 25% investment tax credit for manufacturers, $500 million for creating an international secure communications program, and millions for worker training programs.
“The concern we’ve had on that is that they’re trying to shift the spending into the mandatory side,” Scalise told reporters Tuesday. “If you look at where the biggest problem with our debt and deficits are right now, is that so much new spending is moving into the mandatory side, which is, in essence, autopilot spending.”
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While Scalise has reservations about the bill, which still has language being ironed out in the Senate, proponents of the measure have argued that Congress needs to act on the matter, noting that a shortage presents a national security crisis for the country.
The slimmer bill comes after talks between the conference committee on a larger China competitiveness proposal stalled after Senate Minority Leader Mitch McConnell (R-KY) asserted Republicans would not support the measure if Senate Democrats pushed forward with a budget reconciliation bill progressives hoped would address an array of issues, including climate, unwinding parts of the GOP’s landmark tax reform bill and allowing for Medicare to negotiate drug pricing.
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The reconciliation bill also remains in flux after Sen. Joe Manchin (D-WV) called for the legislation to drop language on taxes and climate over fears of its impact on inflation.
