During consideration of the National Defense Authorization Act (S. 4049), Senator John Cornyn (R-Texas) introduced an amendment to “restore American leadership in semiconductor manufacturing by increasing federal incentives.” Cornyn’s amendment would provide up to $3 million in grants to subsidize U.S. semiconductor manufacturers.
The Senate agreed to Cornyn’s amendment on July 21, 2020 by a vote of 96 to 4 (Roll Call 134). We have assigned pluses to the nays because nowhere in the Constitution is the federal government authorized to subsidize private businesses. If such subsidies are allowed, then any business could potentially be subsidized at the expense of any other, with the government essentially picking winners and losers in the marketplace, causing great economic distortion.
