House Speaker Johnson Suggests Possible CHIPS Act Repeal, Later Clarifies Position

House Speaker Johnson Hints GOP May Target CHIPS Act for Repeal, Later Clarifies Intent

WASHINGTON (AP) — House Speaker Mike Johnson recently suggested that Republicans might consider repealing the CHIPS and Science Act, legislation that has boosted U.S. semiconductor production. However, he quickly amended his statement, indicating he would instead aim to streamline the Act.

While speaking on behalf of a Republican congressman in New York, Johnson responded to a reporter’s question about the possibility of repealing the bipartisan CHIPS Act, which former President Donald Trump criticized last week. Johnson initially replied, “I expect that we probably will,” but later clarified that while repealing the Act wasn’t the goal, he intended to focus on reducing costly regulations and removing Green New Deal elements.

The CHIPS Act, passed in 2022, allocated $54 billion to revitalize U.S. semiconductor manufacturing, leading to substantial investments and job creation. The White House credits the Act with securing thousands of jobs and driving significant economic growth. Vice President Kamala Harris has highlighted the Act’s success in her campaign, noting its impact on the economy and job market.

Johnson, who originally opposed the CHIPS Act, faced immediate backlash from Democrats, who argued that his comments signaled a conservative push to dismantle successful government programs. In response, Johnson issued a statement reaffirming that the CHIPS Act would not be repealed, emphasizing instead a need for further improvements.

This instance follows another recent comment from Johnson, who had to clarify statements about aggressively restructuring the regulatory framework and significantly altering the Affordable Care Act, saying that repealing it is "not on the table.

Johnson’s remarks illustrate his challenge of balancing support for Trump’s agenda while campaigning for GOP colleagues in competitive races. His remarks regarding the CHIPS Act come as he campaigns for Rep. Brandon Williams, a Republican who has supported the Act and whose district expects significant economic growth with a new semiconductor facility backed by CHIPS Act funding.

Williams later explained that Johnson apologized privately for the misunderstanding. “He misheard the question,” Williams said. New York Gov. Kathy Hochul, however, warned that any threat to repeal the CHIPS Act could impact thousands of well-paying jobs and hinder $231 billion in economic growth across the nation.

As the campaign season intensifies, Democrats hope to leverage Johnson’s comments to appeal to working-class voters in manufacturing-heavy areas. Vice President Harris, while touring a semiconductor factory in Michigan, reiterated her commitment to job growth and American competitiveness in the semiconductor industry.

According to the Commerce Department, as of August, CHIPS Act funds have enabled 23 projects across 15 states, adding 115,000 manufacturing and construction jobs. These projects are projected to increase the U.S. share of global chip production to 30%.

A Democratic spokesperson remarked on Johnson's statements, saying, “Mike Johnson is setting a new trend by suggesting he’d cut jobs in the town he’s visiting.