HILL TAX BRIEFING: Narrower Chips Bill Gains Momentum in Senate

A scaled-down China competition bill that would provide $52 billion to encourage domestic semiconductor manufacturing appears to be gaining support in the Senate.

Senate Republican Leader Mitch McConnell (R-Ky.) previously said he would block the competition package if Democrats continue to pursue partisan economic legislation using the budget reconciliation process.

But Republicans appear more willing to support the chips bill after last week’s revelation that Sen. Joe Manchin (D-W.Va.) is currently only willing to support a narrow reconciliation package focused on prescription drugs and Affordable Care Act subsidies—with no tax increases or climate-focused spending.

Sen. John Cornyn (R-Texas) ...