Senate Nears Passage of US Chips Legislation

The Senate voted 68-30 Thursday to end debate on a substitute amendment for the Endless Frontier Act (S.1260) (see 2105130069), moving one step closer to final passage. Senators agreed to a defense spending amendment and appeared to be nearing agreement on a trade policy provision in a package that could far exceed the original $100 billion.

By invoking cloture on the substitute amendment from Senate Majority Leader Chuck Schumer, D-N.Y., the Senate capped debate at 30 hours. Any amendments offered after cloture would require unanimous consent for passage.

Senate Finance Committee ranking member Mike Crapo, R-Idaho, and Chairman Ron Wyden, D-Ore., struck a deal on an amendment to combat “China’s manufacturing imbalances, threats to free trade and illicit activity,” Crapo said on the floor. It appoints a U.S. Trade Representative official to oversee information communication technology and provides advanced notice and text of proposals for any digital trade agreements five days before they’re “tabled,” he said.

The Senate agreed 67-30 to an amendment from Sen. Ben Sasse, R-Neb. It would authorize appropriations for the Defense Advanced Research Projects Agency “to conduct research and development in key technology focus areas.”

Senate Minority Whip John Thune, R-S.D., proposed an amendment to establish an autonomous vehicle regulatory framework. His measure didn’t receive a vote. It would have governed expanded testing and deployment of AVs with oversight from the National Highway Traffic Safety Administration, he said, noting AVs won’t deploy until NHTSA certification. He warned the U.S. would be ceding to China on the vehicles if it fails to establish a framework.

Sen. Marco Rubio, R-Fla., sought additional safeguards for the estimated $150 billion package. He told reporters he supports the underlying bill but wants to ensure the funding is “not stolen from us. So I’d like to see some heightened level of scrutiny for some of these investments. ... We can definitely pass a bill.”

Schumer remarked on the floor that the bill moved through regular order with “staggering” support from the Senate Commerce Committee. In the past five months, more amendments have received roll call votes than any of the previous four years under then-President Donald Trump, he said. Going into Thursday, the Senate had held votes on 18 amendments for the legislation, four from Democrats and 14 from Republicans.

Sen. John Cornyn, R-Texas, offered an amendment that would strip Davis-Bacon Act provisions. Davis-Bacon carries certain wage requirements for contractors and subcontractors. Cornyn said he supports the underlying bill, particularly elements from his Creating Helpful Incentives to Produce Semiconductors (Chips) for America Act (see 2105170059).