McCaul, 118 Colleagues Send Bipartisan, Bicameral Letter Urging Inclusion of Chips Permitting Reform in Defense Bill

WASHINGTON – Today, U.S. Congressman Michael McCaul (R-Texas), Representatives Jen Kiggans (R-Va.), Doris Matsui (D-Calif.), Scott Peters (D-Calif.), and Senators Mark Kelly (D-Ariz.), Ted Cruz (R-Texas), Sherrod Brown (D-Ohio), and Todd Young (R-Ind.) led over 100 of their colleagues in sending a letter to Senate and House Armed Services Committees leaders, urging the committees to keep language from the Building Chips in America Act in the Fiscal Year 2024 National Defense Authorization Act (NDAA). This bill would ensure streamlined environmental review for projects in Rep. McCaul’s CHIPS for America Act, maximizing U.S. potential to onshore semiconductor chip manufacturing.

Rep. McCaul released the following statement on the letter:

“Boosting domestic production of semiconductor chips is a national security imperative. That’s why I wrote the CHIPS for America Act. With our adversaries like the Chinese Communist Party growing increasingly aggressive and seeking to monopolize the chip market, we cannot afford to burden U.S. companies with unnecessary bureaucracy and years-long delays. Too much is at stake.”

Background:

Since Rep. McCaul’s CHIPS for America Act was signed into law last year, companies have announced plans to invest billions in new domestic chip manufacturing projects across Texas and the nation. However, despite their national security importance, progress on projects is obstructed due to onerous federal environmental regulations under the National Environmental Policy Act (NEPA).

The Building Chips in America Act — which would streamline NEPA review requirements for semiconductor manufacturing projects to maximize the impact of the CHIPS for America Act — passed with overwhelming bipartisan support as an amendment to the Senate NDAA in July. As Senate and House leaders prepare to negotiate a final, compromise version of the NDAA, Rep. McCaul and his colleagues are urging them to maintain these permitting reforms.

In the letter, the members write, “Historically, NEPA reviews apply to projects that receive a significant portion of federal funding, giving the Federal government sufficient control over the project’s outcome. This is not the case for the CHIPS program. … Interruptions and delays to semiconductor manufacturing projects would undermine the goals of the CHIPS Act and exacerbate risks to our economic and national security, without providing additional benefits for environmental protection. Therefore, we urge you to retain Section 1090G of S. 2226 in the final FY24 NDAA.” 

Click here to read full text of the letter.

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