Biden admin tells companies seeking CHIPS funding to avoid stock buybacks, provide child care plans

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Biden admin tells companies seeking CHIPS funding to avoid stock buybacks, provide child care plans
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The Biden administration is making funds available under the CHIPS Act, and companies will be more likely to get funding if they refrain from stock buybacks.

Arm CEO Rene Haas discusses if America can return to its former glory as the dominant leader in the microchip industry, telling 'The Claman Countdown' the demand for semiconductors has never been great.on Tuesday unveiled the first opportunity for companies seeking funding under the CHIPS Act and outlined some of the strings attached to those funds — including the disclosure of stock buyback plans and a plan to provide child care.

Companies seeking over $150 million in funding under the CHIPS Act will be required to submit plans to provide child care for construction and facility workers., which is a sub-agency of the Commerce Dept., wrote that the "CHIPS Program Office will require all applicants to detail their intentions with respect to stock buybacks over five years, including whether they intend to refrain from or limit them.

have drawn the ire of Democrats in recent years who believe they primarily benefit corporations, executives and wealthy investors. under the Inflation Reduction Act, after initially proposing a 2% tax on the transactions. In his recent State of the Union address, President Joe Biden called for that tax rate to be quadrupled, although that proposal is unlikely to advance through Congress.

The Biden administration will require that companies seeking $150 million or more in CHIPS funding submit a plan for providing the workers who build and operate their facility with access to child care. NIST wrote that the "first-of-its kind commitment will be essential to getting people — especially women — into the workforce."

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