House Speaker Mike Johnson remarked on Friday that Republicans may attempt to repeal the legislation that has boosted U.S. semiconductor chip production. Shortly thereafter, Johnson retracted his statement, expressing instead a desire to “streamline” the act.
Johnson’s initial comments were made while he was supporting a vulnerable GOP congressman in New York, in a district that is expecting a new Micron semiconductor manufacturing facility. When questioned by a reporter about the potential repeal of the bipartisan CHIPS and Science Act—a law recently criticized by Republican presidential candidate Donald Trump—Johnson suggested there was a possibility but clarified that an agenda had not yet been formalized.
Democrats quickly reacted to Johnson’s remarks, cautioning that this reflected an aggressive conservative agenda spearheaded by Johnson and Trump, aimed at dismantling even popular government initiatives. The Biden administration has credited the CHIPS Act with catalyzing substantial investments and job creation in the sector. Vice President Kamala Harris highlighted the legislation during campaign events as evidence of Democrats’ capability to manage the U.S. economy effectively.
Subsequently, Johnson issued a statement clarifying that the CHIPS Act, which allocated $54 billion for the semiconductor manufacturing industry, was not slated for repeal. Rather, he suggested potential legislation aimed at refining the act by removing costly regulations and requirements associated with the Green New Deal.
This scenario follows other instances where Johnson has needed to amend his public statements, including earlier comments about significantly altering the Affordable Care Act, which drew political criticism and led him to clarify that repealing the act was not under consideration.
This development illustrates Johnson’s challenge in balancing collaboration with Trump while campaigning for fellow House Republicans, particularly those facing tight reelection contests vital for maintaining their slim majority. During this campaign effort, Johnson was supporting Rep. Brandon Williams, a tech industry veteran and advocate of the CHIPS Act.
Williams stated that he discussed the matter privately with Johnson, who apologized, indicating he had misunderstood the question. In Williams’ district, anticipation builds around a significant new Micron semiconductor manufacturing project, boosted by $6.1 billion in CHIPS Act grants.
New York Governor Kathy Hochul, a Democrat, expressed in a statement that any threat to repeal the CHIPS & Science Act jeopardizes over 50,000 well-paying jobs in Upstate New York and $231 billion in economic growth nationwide. Democrats are leveraging these comments to appeal to working-class voters reliant on manufacturing jobs.
In response to Johnson’s remarks, a spokesperson for Harris’ campaign emphasized her commitment to restoring manufacturing jobs in America and ensuring global competitiveness, underscoring that electing Harris as president would prevent the repeal of laws beneficial to job creation and cost savings.
As of August, the CHIPS and Science Act had facilitated $30 billion in support for projects across 15 states, aimed at creating 115,000 jobs, according to the Commerce Department. This funding has attracted private investment and positioned the U.S. to produce 30% of the world’s most advanced computer chips, enhancing its standing in the industry post-Trump administration.
Democratic Congressional Campaign Committee spokesperson Viet Shelton criticized Johnson’s approach, suggesting that instead of promoting job creation, Johnson seemed to advocate for job reductions in the communities he visits.
