S-1260-117
Passed Senate, under the order of 5/28/21, having achieved 60 votes in the affirmative, with an amendment by Yea-Nay Vote. 68 - 32. Record Vote Number: 226. (text: CR S4049-4499)
Sponsored by Charles Schumer (D-NY)
What it does
This bill would direct federal funding toward U.S. semiconductor manufacturing, research and development, and wireless supply chain security through FY2026. It would create a new Directorate for Technology and Innovation within the National Science Foundation, expand computer science education programs, and authorize space exploration activities. The bill would also impose sanctions on China for cybersecurity and human rights abuses, restrict federal funding from reaching the Wuhan Institute of Virology, require federal infrastructure projects to use U.S.-made materials, and extend trade preference programs through 2027.
Who benefits
U.S. semiconductor manufacturers and their workers; domestic materials producers who gain preference in federal infrastructure contracts; K-12 students and teachers through expanded computer science education funding; universities receiving NSF grants through the new Technology and Innovation Directorate; NASA and its contractors through extended property leasing authority; U.S. companies engaged in digital trade who may benefit from actions against foreign censorship practices; Indo-Pacific nations receiving foreign assistance; researchers and institutions receiving expanded NSF funding.
Who is hurt
Foreign semiconductor manufacturers — particularly those in China — who would face increased U.S. competition and potential sanctions; U.S. companies with supply chains or research partnerships in China that could be disrupted by sanctions or new restrictions; the Wuhan Institute of Virology and any U.S. researchers collaborating with it who lose access to federal funding; foreign companies currently benefiting from U.S. trade preferences who may face new conditions; U.S. importers and consumers who may face higher costs if domestic-only procurement requirements raise prices on federally funded infrastructure projects; merger parties subject to higher filing fees.
Supporters argue
Supporters argue that the United States has fallen dangerously behind in semiconductor production — a technology that powers everything from cars to weapons systems — and that dependence on foreign-made chips creates serious national security vulnerabilities. They contend that targeted federal funding for domestic manufacturing and research would rebuild supply chains that proved fragile during recent global shortages. Supporters also argue that the bill takes necessary steps to counter China's state-sponsored cybersecurity threats and human rights abuses through targeted sanctions, while protecting American universities and research institutions from foreign influence. They say expanding computer science education and NSF research capacity would strengthen the long-term workforce and technological competitiveness the U.S. needs to maintain its global standing.
Opponents argue
Opponents argue that the bill represents a costly and potentially ineffective use of federal dollars, with large subsidies directed at private semiconductor companies that may not produce the promised domestic manufacturing gains. They contend that "Buy American" procurement requirements could raise the cost of federally funded infrastructure projects, ultimately burdening taxpayers. Some opponents argue that broad sanctions on China risk escalating trade tensions and harming U.S. businesses with legitimate operations there, while others question whether the federal government is the right actor to pick winners in technology markets. Critics also raise concerns that the bill's wide scope — spanning trade, education, foreign policy, and manufacturing — bundles too many unrelated policy areas into a single piece of legislation, reducing accountability and oversight for each component.