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Friday, November 15, 2024

Senator Vance criticizes diversity mandates linked to CHIPS Act funding

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Senator J.D. Vance | Official U.S. Senate headshot

Senator J.D. Vance | Official U.S. Senate headshot

Senator JD Vance of Ohio expressed strong criticism towards Secretary of Commerce Gina Raimondo during a Senate Commerce Committee hearing. The discussion centered on the Biden administration's diversity mandates, which affect hiring practices for companies seeking funding under the CHIPS Act.

During the hearing, Senator Vance questioned the logic behind these mandates. He stated, "I’m struggling to make sense of the fact that we apparently have a shortage of skilled labor to manufacture chips on the one hand, and yet the Secretary of Commerce is telling people that they can only hire the people who check the right diversity boxes. That doesn’t make a ton of sense."

Vance further argued that such requirements could be seen as counterproductive to revitalizing domestic chip manufacturing. He asked rhetorically, "What would you call it when the Secretary of Commerce says you must do this in order to receive funding? If it’s not a mandate, what is it?"

The senator also compared incentives offered by China with those from the United States for companies considering establishing chip fabrication facilities. He remarked, "From China, they get cheap labor, massive subsidies, and a government that seems to want to work with them." In contrast, he suggested that U.S. policies might deter businesses due to perceived bureaucratic hurdles.

The debate highlights ongoing tensions over how best to support domestic industries while balancing social policy goals.

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