In recent weeks, Biden and Senate Majority Leader Chuck Schumer have been taking victory laps for the 2022 CHIPS and Science Act, a law intended to create jobs and fund innovation in a key global industry. It has already launched a series of grants, incentives and research proposals to help America regain its cutting-edge status in global semiconductor manufacturing. But quietly, in a March spending bill, appropriators in Congress shifted $3.5 billion that the Commerce Department was hoping to use for those grants and pushed it into a separate Pentagon program called Secure Enclave, which is not mentioned in the original law. The diversion of money from a flagship Biden initiative is a case study in how fragile Washington's monumental spending programs can be in practice. Several members of Congress involved in the CHIPS law say they were taken by surprise to see the money shifted to Secure Enclave, a classified project to build chips in a special facility for defense and intelligence needs. Critics say the shift in CHIPS money undermines an important policy by moving funds from a competitive public selection process meant to boost a domestic industry to an untried and classified project likely to benefit only one company. No company has been named yet to execute the project, but interviews reveal that chipmaking giant Intel lobbied for its creation, and is still considered the frontrunner for the money.
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