Senate R&D bill to counter China shelved by GOP opposition

WASHINGTON (AP) — A sweeping Senate bill aimed at making the United States more competitive with China and shoring up domestic computer chip manufacturing with $50 billion in emergency funds was abruptly shelved Friday after a handful of Republican senators orchestrated a last-minute attempt to halt it.

Votes on the American Innovation and Competition Act were postponed until June 8, when senators are scheduled to return from a weeklong Memorial Day recess.

The emerging final product has enjoyed broad, bipartisan support and would be one of the more comprehensive investments in U.S. research and development in recent years. But the bill became weighted down by the sheer scope of the effort. It swelled to more than 2,400 pages drawing, sharp opposition from a core group of GOP senators who kept the Senate in a nearly-all-night session as they insisted on more time to digest the bill and make changes.

Senate Majority Leader Chuck Schumer set up the new schedule when it became clear the Republican senators would not relent.

"We have every intention of sticking it out until the job is done,” Schumer, D-N.Y., said as he opened the chamber Friday.

The bill is key to President Joe Biden’s infrastructure plans, and is a massive effort to reinvest in innovative technologies as the country tries to bolster and rebuild home state industries that have shifted overseas during the era of globalization.

It’s also a test of whether the split 50-50 Senate can accomplish bipartisan achievements when there’s pressure on Democrats to change the rules to push past obstruction and gridlock.

Passage was still expected despite the GOP efforts to impede it.

A top Republican author, Sen. Todd Young of Indiana, characterized his underlying proposal that anchors the bill — the Endless Frontier Act he co-authored with Schumer — as part of the country’s history of innovation, like the moon landing or the launch of the internet, that Washington needs to foster if America is to remain competitive.

“It’s not about beating China,” Young said in a speech Thursday. He said it’s about rising to the challenge posed by China “to be a better version of ourselves.”

Senators slogged through days of debates and amendments, but proceedings came to a standstill late Thursday. One Republican, Sen. Ron Johnson of Wisconsin, protested the rush to finish, and he and a few other Republican senators overtook the floor proceedings, insisting on more changes to the sprawling package as debate dragged well past midnight.

Opponents are unlikely to be able to halt the bill but were poised to run out the clock on the proceedings.

Earlier, Sen. Maria Cantwell, D-Wash., the Commerce Committee chairwoman managing the action for Democrats, reminded colleagues that the bill has been through lengthy committee hearings with input and changes from all sides.

“I actually think we have gotten more mindshare with people about why this is important, right, because we had an open debate process,” she had said.

Biden had included elements of the legislation as part of his big infrastructure plan, the American Jobs Act, making a similar case that the U.S. needs to increase its investments to stay competitive with rivals, particularly China.

During a virtual meeting with CEOs last month over the global computer chip shortage that has been disrupting supplies and sales of everyday goods -- from cellphones to new cars — Biden explained his plan to “build the infrastructure of today.”

Actually a collection of bills, the final package caused the opponents to hit the brakes.

Johnson stacked up the bill at his desk bemoaning the towering size, even as he said the legislative process to bring the bill to this point had been better than most over the past decade. He seized the floor around midnight to push other priorities, including his concerns over another topic — illegal immigration and his interest in secure fencing along the southern border with Mexico.

“We haven’t had time to read this — no one has,” said Sen. Rick Scott, R-Fla., joining Johnson’s protest.

The centerpiece of the bill is a $50 billion emergency allotment to the Commerce Department to stand up semiconductor development and manufacturing through research and development and incentive programs previously authorized by Congress. They focus on the military, automakers and other critical industries reliant on computer chips.

The U.S. once manufactured far more chips than today, which some senators said put the U.S. at risk of fluctuations in the global supply chain, as happened over the past year with shortages.

The Endless Frontier provision would authorize funding for the National Science Foundation, including the establishment of a Directorate for Technology and Innovation, as well as research and development funds and scholarships for students focused on science, technology, engineering and math programs.

Senators have tried to strike a balance in raising awareness about China’s growing influence without fanning divisive anti-Asian rhetoric, mindful that hate crimes against Asian Americans have spiked during the coronavirus pandemic.

Other measures spell out national security concerns and target money laundering schemes or cyberattacks by entities on behalf of the government of China. There are also “buy America” provisions for infrastructure projects in the U.S.

At the same time, senators agreed to tack on amendments showing shifting attitudes over China’s handling of the COVID-19 outbreak. One would prevent federal funds for the Wuhan Institute of Virology amid fresh investigation into the origins of the virus and possible connections to the lab’s research. The city registered some of the first virus cases.

Taken together, the innovation act has been a priority for Schumer, the Democratic leader who has long advocated a tougher approach to China. He and Young struck up a conversation about teaming up on a bill during workouts at the Senate gym, lawmakers said.

It's unclear whether the measure would find support in the Democratic-led House.