Commerce Secretary Gina Raimondo is working tirelessly to obligate the $50 billion CHIPS Act funding before President-elect Donald Trump’s administration begins in January, aiming to secure Biden’s high-tech economic agenda.
Raimondo’s Urgent Push for the CHIPS Act
The CHIPS Act, a landmark Biden initiative, allocates $50 billion for semiconductor manufacturing and research to bolster U.S. technological competitiveness and national security. With only two companies having received funds so far, Raimondo has ramped up efforts to finalize agreements with major players like Intel, Micron, Samsung, and SK hynix.
“I’d like to have almost all the money obligated by the time we leave,” Raimondo stated, underscoring the urgency to cement Biden’s legacy amidst potential Republican opposition to ambitious Democratic spending programs.
The program has bipartisan roots, with initial efforts to attract semiconductor manufacturers dating back to Trump’s first term. Raimondo expressed confidence in its durability under a Republican administration, citing its bipartisan support as a national security priority.
Commerce Department’s Transformation
Under Raimondo, the Commerce Department has shifted from its traditional trade promotion role to one that prioritizes national security through technological leadership. The department has not only spearheaded the CHIPS program but also shaped the U.S. agenda on artificial intelligence (AI) and organized the recent global AI Safety Summit in San Francisco.
Raimondo has emphasized that “national security isn’t just tanks and missiles. It is semiconductors. And AI models.” She also noted the importance of maintaining vigilance against China’s technological advancements, calling the U.S.-China competition an ongoing battle that requires daily focus.
Will Trump Stay the Course?
While Raimondo declined to speculate on Trump’s approach, she highlighted bipartisan support for many initiatives, including the CHIPS Act and AI safety standards. She argued that national security concerns tied to these programs align with Republican priorities, making them less likely to face significant rollbacks.
“This isn’t about slowing industry down,” Raimondo clarified about AI policy. “This is about setting up the guardrails and standards to keep us all safe.”
Trump’s nominee for Commerce Secretary, financier Howard Lutnick, will inherit an agency significantly transformed during Biden’s term. Whether Lutnick and Trump will maintain this trajectory or impose drastic changes remains to be seen.
AI and Unfinished Business
Beyond the CHIPS Act, Raimondo has been pivotal in addressing AI safety. The U.S.-hosted AI Safety Summit convened global leaders and experts to establish international standards for AI development, focusing on preventing misuse by bad actors.
Raimondo’s unfinished business includes finalizing rules on Chinese-connected vehicles in the U.S., a step toward tightening national security. She stressed the need for continuous vigilance, especially in light of the ever-evolving technological landscape.
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