Exclusive: Republican senators are calling on the Biden administration to immediately rescind what they call “racist” and “un-American” policies regarding the distribution of CHIP Act subsidies before they violate the law.
The top Republican on the Senate Commerce Committee, Sen. Ted Cruz (R-Texas), and members Sen. J.D. Vance (R-Ohio) and Sen. Cynthia Lummis (R-Wyo.) appear on FOX News Digital. wrote the letter to Secretary of Commerce Gina, which was obtained exclusively by Raimondo spoke about the agency’s guidance to consider the race of an applicant’s suppliers when making CHIPS Act funding.
The senators argue that the policy clearly violates Title IV of the Fifth Amendment, the Civil Rights Act of 1866.
The guidance requires applicants to document “how the applicant intends to address the inclusion of…minority-owned businesses…through its supplier diversity plan” and to It asks them to document “measurable goals,” including how much money they plan to spend. 2030.
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Sen. Ted Cruz (R-Texas) votes at the U.S. Capitol on December 5, 2023. (Tom Williams/CQ-Roll Call, Inc, via Getty Images)
This guidance provides that the Department of Commerce will consider an applicant’s diversity plan as part of the merits review process, access that plan based on the applicant’s strategy for engaging with minority-owned businesses, and “We are committed to tracking and disclosing disaggregated data on the diversity of our suppliers and suppliers.” Diversity of contractors/subcontractors. ”
Secretary of Commerce Gina Raimondo testifies before the Senate Appropriations Subcommittee on Commerce, Judiciary, Science, and Related Agencies during a hearing on expanding broadband access at the Capitol on February 1, 2022, in Washington, DC. (Via Sarah Silbiger/Pool, Reuters/File Photo)
“The Biden administration’s decision to distribute CHIPS funds based on the color of an applicant’s supply chain is racist and anti-American,” Cruz told Fox News Digital.
“We are calling on the Department of Commerce to immediately rescind this unconstitutional policy,” Cruz said. “If we fail to do so, we will no doubt face fierce opposition in court.”
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The bipartisan CHIPS and Science Act was signed into law in 2022, working to strengthen U.S. manufacturing, supply chains, and national security.
In a letter to Raimondo, the senators warned that the policy was “unlawful” and urged the secretary to “rescind the policy before it causes any real harm.”
Sen. J.D. Vance (R-Ohio) during a Senate Banking, Housing, and Urban Affairs Committee hearing on June 22, 2023 in Washington, DC. (Nathan Howard/Bloomberg via Getty Images)
“The Department’s guidance intentionally treats certain applicants worse than others because of a supplier’s race. Title VI prohibits such discrimination,” they wrote. is writing.
“In addition to directing the federal government to violate the law, this guidance also encourages private companies to discriminate on the basis of race in violation of federal law, specifically Section 1981,” they continued. . “Section 1981 makes it illegal for private companies to discriminate on the basis of race when entering into and enforcing contracts.”
Senator Cynthia Lummis (R-Wyo.) holds a press conference on August 9th. (Tom Williams/CQ-Roll Call, Inc, via Getty Images)
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But the senators said the Commerce Department “has not yet finalized CHIPS funding grants to applicants” and that the Department “still has time to change course before violating the law.” He said he meant it.
Mr. Cruz and his Republican colleagues requested that Mr. Raimondo respond to the letter by rescinding the Commerce Department policy by February 29th. If the policy is not rescinded, Mr. Cruz and his Republican colleagues are “demanding a detailed explanation of why they believe the guidance does not violate the law.” Violate the United States Constitution or Title VI, or induce a private entity to violate his Section 1981. ”
