(Bloomberg) — A bill that would aid the U.S. domestic semiconductor industry and bolster competitiveness with China inched forward in Congress as lawmakers race to complete negotiations before the midterm elections scuttle their hopes of delivering a bipartisan win.
Senate Majority Leader Chuck Schumer Wednesday night locked in a series of procedural moves that begin the formal conference process with the House so the two chambers can reconcile their different versions of the bill. Final passage of the legislation remains months off, according to a person familiar with the matter, but Schumer’s actions do advance the measure.
“Tonight’s agreement is very good news for America, for good paying jobs in America, for economic strength in America, for investments in the kinds of science and technology that will help us grow as a country and provide great futures for the next generation,” Schumer said on the Senate floor. “The time has come to move forward on this bill.”
The Senate legislation passed in late March with bipartisan support, but House Republicans are opposed to their chamber’s current version of the bill. The measure squeaked through on a 222-210, mostly party-line vote that came as the Winter Olympics opened in Beijing. Members of both parties support the $52 billion in the legislation for domestic semiconductor manufacturing but disagree on other provisions.
Congressional leaders have named the so-called conferees on the bill, the first formal step in bicameral negotiations. Once a conference committee meets, it could take months to work out all the details.
Legislating in Washington will largely grind to a halt by August as lawmakers retreat to their states and districts to campaign. Republicans are wary of handing President Joe Biden a victory on key legislation before the November elections, the person said.
EARLIER: Senate Passes China Competition Bill to Start Talks With House
Most House Republicans object to an $8 billion outlay for a United Nations climate fund in that chamber’s bill. Across the political spectrum, Senator Bernie Sanders, a Vermont independent, has objected to a provision seen as benefiting Jeff Bezos’ Blue Origin space company.
Schumer introduced the original version of the bill with Senator Todd Young, an Indiana Republican, last year with backing from the semiconductor industry and the White House. Nonetheless, the legislation remained in limbo as the House took a different approach. The Senate focused on developing new technology while the House emphasized basic research and development.
Semiconductor manufacturers looking to build chip fabrication facilities in the U.S. have pressed Congress to pass the legislation, organizing meetings with lawmakers and testifying on Capitol Hill. Lobbyists for the firms have privately conceded that the bill must pass by mid-July or its prospects for success will rapidly diminish.
(Updates with latest Senate action, in the first three paragraphs.)
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