Key Republicans don’t like that President Donald Trump is following the lead of progressive Sens. Bernie Sanders (I-Vt.) and Elizabeth Warren (D-Mass.) when it comes to his plan to use CHIPS Act grants to take a 10% equity stake in Intel.
As we’ve told you, the idea of giving taxpayers a stake in companies that receive federal funds to boost the domestic manufacturing of microchips was originally proposed by Sanders and Warren back in 2022.
“I don’t think the federal government should be taking equity stakes in private companies,” Sen. Ted Cruz (R-Texas) said. “That is a mistake and a slippery slope.”
Sen. Rand Paul (R-Ky.) also raised concerns over the move, “Once the government gets involved in the free market, there is no longer fierce competition that breeds excellence,” Paul said on X.
Other GOP senators don’t sound like fans either.
Sen. Mike Rounds (R-S.D.) told us he’s asked his team to look into the “legality” of the move, and Sen. Todd Young (R-Ind.), a CHIPS Act author, has also expressed skepticism about the federal government taking a stake in the beleaguered chipmaker.
It doesn’t appear these free-market-loving Republicans are prepared to do anything to thwart the president’s plans as of now. But it’s another episode of Trump making Republicans, particularly in the Senate, uncomfortable with his increasingly interventionist economic policies.
Supporters. Not every senator is against the move, though. Ohio GOP Sens. Bernie Moreno and Jon Husted, who represent a state where Intel is building chip fabrication plants, told reporters in Ohio they supported the effort.
And, of course, Sanders sent us a statement last month praising the move since it echoes his original proposal to have the government take a stake in companies that receive CHIPS money.
