Senator Joni Ernst (R-Iowa) has called on the Biden administration to halt what she describes as a “multi-billion-dollar spending spree” under the CHIPS for America program, following comments by Commerce Secretary Gina Raimondo indicating plans to fully allocate the program’s funds before President-elect Donald Trump takes office in January.
Senator Ernst, chair of the Senate DOGE Caucus, criticized the rushed expenditure of taxpayer dollars, warning of insufficient oversight and waste. In a strongly worded letter to Secretary Raimondo, she highlighted concerns about hasty decision-making that could jeopardize the program’s goals of strengthening domestic semiconductor manufacturing.
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“This is not a time to let the CHIPS fall where they may,” Ernst wrote. “Haste makes waste, as we learned when $280 billion of COVID dollars may have been handed to fraudsters in the rush to get the money out the door. Shoveling out heaps of taxpayer dollars as fast as possible, with little to no oversight, is why the United States government is nearly $36 trillion in debt today.”
Ernst emphasized the need for thoughtful planning and strategic spending to ensure the program advances national interests rather than personal or political agendas.
Ernst requested that the Department of Commerce immediately suspend awarding new grants until a new secretary is confirmed under the incoming Trump administration. She also called for the preservation of all records related to funding decisions and detailed answers to several questions regarding ongoing projects and the allocation process.
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Her inquiries include requests for:
- The total number of ongoing negotiations for CHIPS awards.
- Average timelines and dollar amounts for projects approved before and after November 5, 2024.
- A list of awarded projects, categorized by date and dollar amount.
- Measures taken to ensure taxpayer dollars are allocated effectively under expedited timelines.
Secretary Raimondo had previously stated her intent to ensure nearly all CHIPS program funds are obligated before the Biden administration leaves office. The Department of Commerce has already awarded $25 billion in incentives under the program, nearly half of the $53 billion authorized by Congress. Ernst expressed doubt that adequate oversight and industry consultation could occur under such a tight timeframe.
Ernst’s letter follows broader concerns over government mismanagement of large-scale funding programs, citing pandemic-era spending as a cautionary example. She highlighted findings that billions of COVID relief dollars were potentially lost to fraud due to rushed disbursements.
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“American taxpayers deserve to know their hard-earned dollars are spent wisely and responsibly,” Ernst stated.
The CHIPS program, established to boost domestic semiconductor production, is a key part of the Biden administration’s economic agenda. While supporters argue the program is vital to enhancing national security and supply chain resilience, critics like Ernst caution that rushing to allocate funds without proper oversight could undermine its long-term success.
Ernst has requested written responses from Secretary Raimondo by January 3, 2025, and stressed the importance of transparency and coordination with the incoming Trump administration. As the transition of power nears, the handling of CHIPS funds is likely to remain a contentious issue in Washington.
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