In the final hours before adjourning for its traditional August recess, the U.S. House of Representatives passed the CHIPS and Science Act, a bill the U.S. Senate approved earlier in the week. The President signed the bill into law on August 9. 

This legislation has been hotly debated and almost didn’t get across the finish line. At issue was how to best address U.S. competitiveness with China and other countries. The two chambers initially proposed two very different forms of the bill, with the Senate primarily focusing on chip and semiconductor manufacturing and the House including provisions related to immigration and additional domestic workforce development. During the negotiations, WTIA advocated on several priorities, including creation of an entrepreneurship visa category and passage of the National Apprenticeship Act (which would have codified several key provisions related to federally registered apprenticeships). Unfortunately, neither of these provisions ended up in the final bill.

Although the $52 billion in chip and semiconductor production subsidies provided in the final CHIPS and Science Act is making headlines, there are several provisions within this legislation that are exciting for the broader tech community. More specifically, there is significant investment in science, technology, engineering, and math (STEM) education, advancing emerging technologies, and growing regional innovation economies.

WTIA will follow the implementation of the legislation closely, looking for opportunities to engage with federal policymakers, access grants to support our existing programs and be involved in new efforts to support the technology sector in Washington state. 

Workforce Development

A significant portion of the legislation is dedicated to the need to train and reskill the U.S. workforce to meet the demands of the 21st century.

The majority of the funding is going to the National Science Foundation (NSF) to increase access to the STEM education pipeline, from Pre-K through higher education. It includes grants to higher education institutions and non-profits to increase engagement in youth STEM programs, with a particular focus on historically underrepresented groups, rural students, and elementary schools. It establishes a National STEM Teacher Corps pilot program to support K-12 STEM educators and their career paths. It funds study of STEM education and workforce needs, establishment of centers of excellence within the associate degree-level colleges, and supports community and career and technical colleges that help students enter the workforce with a STEM degree or transfer to a 4-year institution. There are also specific funding and workforce initiatives designed to increase the cybersecurity and microelectronics workforce. 

The legislation also includes workforce development initiatives in other federal agencies. It establishes an Office of STEM Engagement within the National Aeronautics and Space Administration (NASA) with the goals of enhancing STEM literacy, increasing diversity, equity, and inclusion in STEM, and preparing the STEM workforce for the future. It also authorizes the Department of Energy (DOE) to foster collaboration between K-12 students, university students, early-career researchers, faculty, and national laboratories with the goal of increasing development of the scientific workforce. 

Blockchain and Quantum

Another key topic within the legislation centers around fostering innovation in emerging technologies. 

Several federal agencies are directed to support innovative technologies. The legislation creates a Directorate of Technology, Innovation, and Partnerships within NSF to accelerate domestic development of national and economic-security critical technologies like artificial intelligence (AI), distributed ledgers, quantum computing, advanced manufacturing, and 6G. Within DOE, it increases funding for research in advanced energy and industrial efficiency technologies, AI and machine learning, advanced manufacturing, cybersecurity, biotechnology, high-performance computing, advanced materials, and quantum information science. The National Institute of Standards and Technology (NIST) is tasked with advancing research and standards development in “industries of the future” like quantum, AI, cybersecurity, advanced communications, and semiconductors. Additionally, it establishes a blockchain and cryptocurrency specialist role within the White House Office of Science and Technology Policy. 

Regional Tech Hubs

The CHIPS and Science Act also establishes the Regional Technology and Innovation Hub Program. The U.S. Department of Commerce is directed to create 20 regional hubs across the country to focus on technology development, job creation, emerging technologies, and expansion of the innovation economy. The program will encourage creation of and assist existing consortia between public and private entities to implement regional strategies that support economic development and resilience in geographically diverse locations, promote the benefits of technology development for underserved communities, support modernization and expansion of manufacturing, increase domestic job creation, and improve the pace of market readiness and industry maturation. 

If you would like to learn more about WTIA policy priorities and our work, please reach out to Brittany Jarnot, Public Policy Manager, at bjarnot@washingtontechnology.org.