House Passes $350 Billion Competitiveness Bill, but Senate Fight Looms

The House approved a $350 billion initiative Friday to boost U.S. competitiveness with China and other rivals, but differences with the Senate and emerging partisan divides signaled struggles ahead in reaching a compromise.

The Senate in June passed its $250 billion version of the measure, the U.S. Innovation and Competition Act, on a bipartisan basis. House leaders waited until the past few weeks to put together their own package, called the America Competes Act, as Congress wrestled with other spending proposals.

The House bill passed almost entirely on party lines, in a 222-210 vote. It shares common elements with the Senate bill. 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.

Intel Corp. cheered the passage of the House version, noting its plans for $43.5 billion in new investment in Ohio, Arizona and New Mexico.

“Funding the [semiconductor incentives] is critical to level the playing field with global competitors, protect our domestic supply chain, invest in U.S. jobs and manufacturing and put us on a path to regain U.S. innovation leadership,” said Al Thompson, vice president of U.S. government relations at Intel.