House Expected to Pass $350 Billion Bill to Help U.S. Compete Globally

The House and Senate competitiveness packages share core elements. Both are aimed at increasing federal support for scientific research and particularly new technologies.

Both bills also provide for substantial new federal incentives to help bring advanced semiconductor manufacturing back to the U.S.—another bipartisan priority.

“Now is the time to invest in U.S. innovation to lead the global economy, uphold and write the rules of the international order, strengthen our global supply chains, and spur domestic high-tech manufacturing of critical technologies like semiconductors and microchips,” said Rep.

Suzan DelBene

(D., Wash.), chairwoman of the moderate New Democrat Coalition.

But numerous differences in the House and Senate approaches have emerged in recent weeks.

One is over how to use scientific research to counter overseas threats. The Senate for its part focuses largely on encouraging cutting-edge technologies, such as artificial intelligence and quantum computing.

The House, by contrast, wants to give more flexibility to federal science officials to decide which new ideas deserve to be jump-started. The House package also focuses more on global economic challenges and less on the specific threat from China, aides say.

Compared with the Senate, the House also targets more funding and related policy changes toward issues such as climate change, human rights and domestic social inequality. Its version, for example, includes $8 billion to help developing countries convert to cleaner sources of energy.

Another big difference is the House’s inclusion of a new $45 billion fund to provide grants and loans to strengthen U.S. supply chains and manufacturing.

House Democrats also want to make more use of trade policy changes to counter overseas threats while also adding protections for U.S. workers.

One measure would impose new federal oversight of U.S. cross-border investments in China. Another would remove a loophole that allows for lower-valued products to enter the U.S. from China and some other countries without import duty or customs inspection.

Other proposals would offer new trade-adjustment help to workers affected by pandemic-induced trade and supply chain disruptions, while also addressing “inherent racial disparities and inequalities in our economy,” according to a House summary.

The House narrowly approved procedural measures for adopting the bill on Wednesday, along party lines, setting up the expected Friday vote on final passage. The bill’s sponsors say it provides for roughly $350 billion in overall spending, but the impact on deficits would be lower because not all of that money would represent new spending.

Republicans accuse House Democrats of using the competitiveness bill as a way to pass unrelated spending proposals, weeks after President Biden’s $2 trillion Build Back Better initiative crashed in the Senate.

“The majority is using today’s bill as its last-ditch effort to attach controversial progressive policies that could not pass Congress on their own to critical legislation, all in the guise of addressing the challenges posed by Communist China,” said

Rep. Tom Cole

(R., Okla.) at a committee meeting this week.

“It has become a Frankenstein monster of other things,” said

Rep. Mike Gallagher

(R., Wis.), citing climate-change spending.

Democrats say their bill will help solve supply-chain issues that are dragging on the economy, fueling inflation and frustrating Americans.

“This bill deals with the independence and self-sufficiency of America in making things here in America that we need to have in order to grow our economy, create jobs and opportunity for our people,” said Majority Leader

Steny Hoyer

(D., Md.). He has long supported measures to increase manufacturing in the U.S.

Democrats also view countering climate change as a global competitiveness issue. They note that the package contains dozens of bills that have already passed with bipartisan support.

Senate sponsors predicted that many of the House proposals will have to be removed to ensure Senate passage.

“What candidly will happen [is], we’re going to have to move the policy towards the Senate bill,” said

Sen. Todd Young

(R., Ind.), who has been working with Majority Leader

Chuck Schumer

(D., N.Y.) on the Senate bill.

While praising the House for moving on its own competitiveness package, Sen. Schumer said Thursday that lawmakers will “have much more work to do to bridge our two proposals together.”

Write to John D. McKinnon at [email protected], Natalie Andrews at [email protected] and Yuka Hayashi at [email protected]