Senate Passes $280 Billion Industrial Policy Bill to Counter China

The trouble has marked a foray into industrial coverage that has had little precedent in latest American historical past, elevating myriad questions on how the Biden administration and Congress would implement and oversee a significant initiative involving a whole bunch of billions of taxpayer {dollars}.

The passage of the laws was the fruits of years of effort that in Mr. Schumer’s telling started within the Senate health club in 2019, when he approached Senator Todd Younger, Republican of Indiana, with the thought. Mr. Younger, a fellow China hawk, had beforehand collaborated with Democrats on international coverage.

Ultimately, the Senate assist was made potential solely by an unlikely collision of things: a pandemic that laid naked the prices of a world semiconductor scarcity, heavy lobbying from the chip trade, Mr. Younger’s persistence in urging his colleagues to interrupt with celebration orthodoxy and assist the invoice, and Mr. Schumer’s ascension to the highest job within the Senate.

Many senators, together with Republicans, noticed the laws as a crucial step to strengthen America’s semiconductor manufacturing talents because the nation has change into perilously reliant on international international locations — particularly an more and more susceptible Taiwan — for superior chips.

Mr. Schumer mentioned it had been not too troublesome to rally votes from Democrats, who are typically much less averse to authorities spending. However he additionally nodded to assist from Republicans, together with Senator Mitch McConnell of Kentucky, the minority chief: “To their credit score, 17 Republicans, together with McConnell, got here in and mentioned, ‘That is one expenditure we should always make.’”

The laws, which was recognized in Washington by an ever-changing carousel of lofty-sounding names, has defied straightforward definition. At greater than 1,000 pages lengthy, it’s directly a analysis and improvement invoice, a near-term and long-term jobs invoice, a producing invoice and a semiconductors invoice.