Trump Wants to Can “CHIPS” Act, Calling it “Horrible”

President Trump is taking aim at Joe Biden’s prized CHIPS Act, declaring it “horrible” and calling for its immediate repeal during his historic address to Congress. Could this be Trump’s first major legislative battle of his second term?

At a Glance

  • Trump called for Congress to repeal the $280 billion CHIPS and Science Act in his joint address
  • The Act, passed with bipartisan support in 2022, allocates $52 billion for U.S. computer chip production
  • Trump criticized the legislation as “a horrible, horrible thing” that wastes taxpayer money
  • He suggested using any remaining funds to reduce the national debt instead
  • The move challenges a signature Biden accomplishment aimed at reducing reliance on Chinese technology

Trump Slams CHIPS Act as Wasteful Spending

Former President Donald Trump did not mince words when addressing the CHIPS and Science Act during his first joint address to Congress since returning to the White House. The legislation, which stands as one of the Biden administration’s most significant bipartisan achievements, found itself squarely in Trump’s crosshairs as he called for its complete dismantling.

“Your CHIPS Act is a horrible, horrible thing. We give hundreds of billions of dollars and it doesn’t mean a thing,” Trump said. “They take our money and they don’t spend it. All that was important to them was they didn’t want to pay the tariffs, so they came in the building and many other companies are coming. We have to give them money. We just want to protect our businesses and our people. And they will come because they won’t have to pay tariffs if they build in America. So, it’s very amazing.”

The CHIPS and Science Act, passed in 2022, allocated a staggering $280 billion in total funding, with $52 billion specifically earmarked for American companies to boost domestic production of computer chips. The legislation was framed by the Biden administration as crucial for reducing America’s technological dependence on China and strengthening national security.

Better Solutions Through Tariffs

Trump’s criticism of the CHIPS Act centers on his belief that the massive government spending is unnecessary when tariffs could accomplish the same goal more efficiently. During his address, Trump suggested that companies are primarily motivated by avoiding tariffs rather than receiving government subsidies, making the CHIPS Act redundant under his economic vision.

“You should get rid of the CHIPS Act and whatever is left over, Mr. Speaker. You should use it to reduce debt or any other reason you want to,” Trump told Congress, addressing House Speaker Mike Johnson directly.

The President’s call for repeal signals a significant policy shift that would dismantle one of the rare instances of bipartisan cooperation during the Biden years. Trump’s alternative approach emphasizes his America First economic policy, suggesting that his tariff strategy would naturally incentivize companies to build manufacturing facilities in the United States without requiring massive taxpayer subsidies.

Republican Leadership Response

House Speaker Mike Johnson previously indicated support for repealing the CHIPS Act if Trump returned to office. However, Johnson quickly walked back those comments after facing criticism from fellow Republicans who supported the legislation. This internal Republican disagreement highlights the complex politics surrounding the issue, even within Trump’s own party.

The fate of the CHIPS Act now hangs in the balance as Trump’s administration begins to implement its economic agenda. With Republicans controlling both chambers of Congress, Trump’s call for repeal carries significant weight, though it remains to be seen whether enough lawmakers will be willing to dismantle legislation that passed with support from both parties just two years ago.

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