President Trump has called on Congress to repeal the CHIPS and Science Act (the CHIPS Act), a law that provides funding to boost domestic production and research of semiconductors. Heather Boushey, former member of the White House Council of Economic Advisers, elaborates on the importance of the CHIPS Act and government subsidies.

She explains subsidies are essential for ensuring national and economic security, emphasizing the need for investment in semiconductor manufacturing to prevent vulnerabilities.

“This is so important because … the end goal is national security, but it’s also economic security and equitable growth, good jobs in communities across the country,” Boushey tells Catalysts host Madison Mills and Threadneedle Ventures founder Ann Berry.

Boushey stresses the importance of federal grants, loans, and R&D in supporting startups, warning that cutting these resources would harm innovation. She notes the impact of individuals like Elon Musk, who have benefitted from government support in the past but now seem to disregard it.

“I worry for all of the kids in college and the early entrepreneurs that are not going to be able to access those same kinds of community investments that earlier startups were able to do,” she adds.

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This post was written by Josh Lynch