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| Commerce Secretary Howard Lutnick cancels ‘unlawful' $7.4B deal to fund semiconductor research for a nonprofit associated with Biden. | |
| 2025-08-26 | |
The 2022 Chips and Science Act allocated $11 billion for semiconductor R&D, which was meant to be managed by the Department of Commerce’s National Semiconductor Technology Center. However, Lutnick expressed concerns in his letter to Natcast CEO Deirdre Hanford. He pointed out that instead of forming these organizations within the department, officials were directing considerable resources toward creating external entities to handle public funds. Just four days before Biden stepped down on January 20th, Lutnick arranged for a $7.4 billion "prepaid" agreement for Natcast after nearly two years of establishing the Commerce Department and staffing it with allies and advisors. This deal effectively limited the next Trump administration’s role and secured essential funding for Natcast. The funding was intended to remain effective until 2034. Lutnick’s letter further stated that these actions not only risk fraud but also fail to comply with federal law, as the Chips Act does not authorize external organizations like Natcast to manage the distribution of semiconductor research funds. He noted that the Government Corporation Control Act prohibits companies from acting as governmental bodies without explicit approval, implying the January 16, 2025 agreement aimed to circumvent this restriction. The Natcast Selection Committee included various Biden administration alumni, such as Jason Matheney, a former deputy director of the White House Science and Technology Policy, and Kendra Wilkerson, who leads a nonprofit promoting equity in tech. Additionally, Donna Dubinski, another executive from Natcast, had previously worked as a senior advisor for former Commerce Secretary Gina Raimondo and registered the organization for 501(c)(3) status. Current vice-chair of the Biden Department of Commerce’s Chips Law Advisory Committee, Susan Feind, now serves as Natcast’s senior vice president for ecosystem development. Related: Howard Lutnick 07/02/2025 Trump says he will be ‘very firm’ with Netanyahu on ending Gaza war, says Israel agreed to conditions for 60 Gaza ceasefire Howard Lutnick 04/17/2025 U.S. Restricts Export of Chips Used by China's DeepSeek AI Howard Lutnick 04/17/2025 Japan braces for high-stakes trade talks with Washington | |
| Posted by:Besoeker |