Sen. Joni Ernst (R-IA) is poised to challenge Commerce Secretary Gina Raimondo over her reported rush to allocate the remaining CHIPS and Science Act funds before President-elect Donald Trump takes office. In a letter expected to be delivered Wednesday, Ernst calls Raimondo’s expedited spending plan “extremely concerning” and urges her to stop any “binge buying” of taxpayer dollars.
Raimondo recently stated her intention to commit nearly all remaining CHIPS Act funding by the time the Biden administration ends. “I’d like to have really almost all of the money obligated by the time we leave,” Raimondo told Politico. The CHIPS Act, a significant Biden-era initiative, allocates billions to boost domestic semiconductor manufacturing and technology development.
Ernst emphasized the importance of careful oversight in managing these critical investments. She argued that rushing to spend the remaining funds could compromise the program’s success and increase the risk of waste or fraud. Comparing the situation to the $280 billion in COVID-19 funding mismanaged or lost to fraud, Ernst warned that “shoveling out heaps of taxpayer dollars as fast as possible” contributes to the nation’s $36 trillion debt.
In her letter, Ernst demands detailed information on ongoing CHIPS Act negotiations, the timeline of projects, and spending figures before and after Trump’s victory. She also wants to know how the Commerce Department is coordinating with Trump’s transition team. Ernst’s concerns reflect broader Republican priorities for fiscal responsibility and oversight, particularly ahead of the incoming administration’s plans for government reform.
Trump’s selection of Cantor-Fitzgerald CEO Howard Lutnick to replace Raimondo signals a potential shift in approach to federal spending and semiconductor policy. Ernst’s letter underscores a commitment to holding outgoing officials accountable and ensuring taxpayer dollars are spent wisely.
Raimondo defended her actions, claiming the current spending plan was always intended to conclude before the administration’s term ends. “Certainly, a deadline focuses the mind,” she remarked, adding that the CHIPS program has bipartisan support.
With $25 billion already allocated out of the $53 billion total, Ernst’s call for transparency and caution highlights a pressing concern over how the remaining funds will be managed in the weeks leading up to January 20.
