The House on Friday passed the America COMPETES Act, a Democratic-driven bill that seeks to aid industries deemed necessary to compete with China in technology and manufacturing.
The bill is House Speaker Nancy Pelosi’s version of the Innovation and Competition Act, which passed the Senate with bipartisan support in June 2021. It is supported by President Joe Biden.
The bill also marks a shift in federal policy on economic competition with China, taking a more confrontational approach than in previous decades.
The bill would grant $52 billion to boost semiconductor chip production within the United States and another $45 billion in spending to support supply chains.
In her push for the bill, Pelosi has sought to highlight how it will invest in manufacturing semiconductor chips, which she called in a floor speech this week “the lifeblood of modern technology,” used in defense systems, cars, and cellphones.
Pelosi also argued the bill will address some supply chain disruptions causing a spike in inflation.
Republicans argued the bill would actually benefit China. A recent memo from the Republican Study Committee dubbed the legislation the “America CONCEDES Act.” The memo argued the bill “adds fuel to inflation fire” with “no design” to pay for it.
But the bill passed by a vote of 222-210. One Democrat, Rep. Stephanie Murphy, voted against it, while one Republican, Rep. Adam Kinzinger, voted for it. As the bill passed, Pelosi could be heard saying, “This is great,” on the floor.
The two chambers will have to reconcile the differences between their bills before one may reach Biden’s desk.
