The tech sector was both the beneficiary of immense public investments and the target of significant regulation from public policy makers in the past year. This dynamic is expected to continue with the new Congress and the Administration.
In August, Congress enacted the bipartisan $280B CHIPS and Science Act to boost public and private sector investments in critical and emerging technologies. The law included $50 billion for the CHIPS for America Fund, as well as a 25% tax credit for U.S. chip manufacturing. The Commerce Department is expected to begin considering grant applications as soon as February and awarding funds next year. The law also authorized, but did not fund, a host of new programs to spur research and development across the tech sector and to create a new technology directorate at the National Science Foundation.
Despite this major bipartisan law to support the tech industry, policymakers also supported significant new bills and regulations to rein in the sector. Most prominently, Democrats and Republicans teamed up to sponsor a host of antitrust bills and hauled in top tech executives to testify and defend their practices.
We expect a similar “hot-and-cold” dynamic in the new Congress with a mix of public support and scrutiny. In line with its public support under the CHIPS and Science Act this year, Congress is expected to increase funding for the National Science Foundation to jumpstart a new era of invention and global technology leadership. At the same time, the Republican majority in the House is likely to pursue an array of bills that challenge tech companies. The focus is expected to shift from antitrust law toward content moderation and economic decoupling from China that are of particular interest to Republicans.Continue Reading CONGRESS AND THE BIDEN ADMINISTRATION TO CONTINUE PUBLIC SUPPORT AND SCRUTINY OF TECH SECTOR