WASHINGTON — In the final weeks of last year’s presidential race, House Speaker Mike Johnson quickly retracted statements made alongside a vulnerable Republican representative from New York.
Johnson had committed to repealing the CHIPS and Science Act if Donald Trump secured the presidency — a stance he soon recognized was unpopular in key districts and could jeopardize his colleagues’ re-election efforts.
“The CHIPS Act is not on the agenda for repeal,” Johnson, R-La., stated shortly after his comments in October.
Follow live politics coverage here
Fast forward to Tuesday, when Trump, now president, made a public request of Johnson during a nationally broadcast speech before Congress: Repeal the CHIPS Act.
“Your CHIPS Act is a horrible, horrible thing,” Trump remarked, directing his criticism at Democrats after mentioning a Taiwanese semiconductor company’s recent investment in the U.S. “We give hundreds of billions of dollars, and it doesn’t mean a thing.”
“All that was important to them was they didn’t want to pay the tariffs,” Trump continued, before directly addressing Johnson. “You should eliminate the CHIPS Act. And whatever remains, Mr. Speaker, you should use it to reduce debt. Or whatever other purpose you see fit.”
While Johnson stood up and applauded following Trump’s remarks, the reaction from other Republicans on Wednesday was notably frosty. Although they were aware of Trump’s position against the legislation, senior party leaders had not been informed that Trump would make such a demand during his joint address, and they have no plans to address a repeal of the law any time soon.
“We have too many other priorities that are higher on the agenda,” remarked a senior Republican leadership aide. “I highly doubt this will be part of any upcoming initiatives.”
“I don’t see a strong interest in that,” agreed a senior Senate Republican aide.
The legislation passed with bipartisan support and was enacted by President Joe Biden in 2022. It allocated $280 billion to enhance domestic semiconductor production and support research and development. The Commerce Department’s National Institute of Standards and Technology reports funding has been awarded to projects in around two dozen states.
“I’m not quite sure what he was implying there,” said Senate Majority Leader John Thune, R-S.D. “There are certainly questions regarding the meaning of that statement, but he is right that we need to find ways to alleviate restrictions on how the funds are spent.”
Trump and some conservatives have criticized the legislation as providing subsidies to wealthy corporations, arguing tariffs would be a more effective means of enticing semiconductor firms to establish operations in the U.S.
Speaking to reporters on Wednesday, Johnson acknowledged that “we have work to do regarding the CHIPS Act,” expressing concerns over how the Biden administration is implementing the law.
He added that Republicans will “wait on” Trump’s upcoming budget proposal to determine how he addresses the CHIPS Act before making any decisions.
“There’s a lot of talk and discussion about it,” Johnson stated.
However, Republican senators who had supported the legislation were caught off guard by Trump’s comments during his Tuesday address.
Sen. Todd Young, R-Ind., expressed that these remarks conflicted with assurances he had received from Trump’s Cabinet nominees as part of securing his vote for their confirmation.
“I have to admit, I was surprised,” said Young, who was the lead Republican on the legislation. “His comments seemed to contradict the reassurances I received, both privately and publicly, from his now-Cabinet members, which I had needed to consider supporting certain nominees.”
Young mentioned that he has contacted the White House for clarification following the address.
“We’re working with them, seeking clarity,” he added. “I remain hopeful and, frankly, my expectation remains that we will be actively collaborating on improvements to the program, and that’s how I’m viewing the future.”
Seventeen Senate Republicans voted in favor of the legislation in 2022, though some of those members are no longer in the Senate. In the House, only one GOP congressman voted in support — the now-deceased former Rep. Don Young, R-Alaska.
The legislation has been broadly viewed as a successful initiative to revitalize chip manufacturing in the U.S.
“I don’t think that’s likely to happen,” Sen. John Cornyn, R-Texas, replied when asked if he would support repealing the legislation, which he endorsed in 2022. “The origins of that program began during his administration, and it has resulted in significant investments in the U.S. by TSMC, Samsung, Micron, and others, making it feasible for the president to announce this substantial new investment by TSMC for advanced semiconductor manufacturing.”
Sen. Lindsey Graham, R-S.C., another supporter of the legislation, expressed curiosity about Trump’s alternative proposals.
“I’d like to see what he intends to replace it with,” Graham stated. “Generally, I want to bring chip manufacturing back here, but I’m open to other viable solutions he might propose.”
A second senior GOP Senate aide indicated that Republicans would likely find it challenging to repeal the CHIPS Act in the near future, given the pressing matters regarding spending and reconciliation bills.
“I just don’t believe there will be time considering our floor agenda,” this person stated. “Unpacking CHIPS will also be complicated because of its existing financial ties to the states.”
Senate Minority Leader Chuck Schumer, D-N.Y., a principal author of the legislation, emphasized in a statement on Wednesday that it received backing from members of both parties “because we need it to strengthen our national security, outpace China, enhance our supply chains, and bring manufacturing home from abroad.”
“People are already witnessing the positive impacts and renewed economic activity in their communities across America, from Ohio to Arizona,” Schumer stated. “I don’t believe the president will find much support in Congress for undermining these CHIPS investments and the multitude of jobs they are generating.”
Sen. Tammy Baldwin, D-Wis., remarked that the CHIPS Act was based on lessons learned during the first Trump administration: “When we lacked domestic supply chains, significant disruptions occurred in globally demanded goods that we did not produce here, jeopardizing our national security and health.”
“This is sound policy that has benefitted our economy, and we should support it,” Baldwin concluded.
As the law was passed under the 60-vote threshold, it would require 60 Senate votes to repeal. The Republicans currently hold 53 seats.
“Having witnessed this administration repeatedly disregard Congress. … we could potentially see some of that in this context as well,” Baldwin noted. “I’m not asserting we will, just that we’ve observed it in other areas.”
Johnson’s retraction last fall occurred while he was in the district of a member benefiting from the legislation, then-Rep. Brandon Williams, R-N.Y., highlighting the political risks associated with attempting to overturn it.
After Johnson indicated a likelihood of repealing the CHIPS Act, Williams stood by him, promising to “remind” Johnson “constantly” about the law’s importance.
“If that’s a priority for your district, you need this guy there to advocate for it,” Johnson responded.
Shortly after their public remarks concluded, Johnson released a statement noting that while the legislation may not be on the chopping block, “there could be legislation aimed at streamlining and enhancing the primary purpose of the bill — to eliminate its costly regulations and Green New Deal requirements.”
Williams stated that he had a private conversation with Johnson following the event, during which the speaker “apologized profusely, claiming he misunderstood the question.”
Williams ultimately lost his House bid. In January, Trump nominated him as the Energy Department’s undersecretary for nuclear security.
Allan Smith reported from New York; Frank Thorp V, Sahil Kapur, and Julie Tsirkin reported from Washington, D.C.
