Vivek Ramaswamy, appointed co-head of the newly established Department of Government Efficiency in former President Donald Trump’s second administration, has voiced strong opposition to the rapid distribution of subsidies under the CHIPS Act.
On Tuesday, Ramaswamy, who will serve alongside billionaire Elon Musk in leading the new department, criticized U.S. Secretary of Commerce Gina Raimondo for her approach to the swift allocation of semiconductor subsidies. In a post on X (formerly Twitter), he called the practice highly inappropriate, accusing the Biden administration of rushing the disbursements ahead of a potential change in leadership.
In a November 20 interview with Politico, Raimondo reaffirmed her commitment to ensuring CHIPS Act subsidies are disbursed before a possible administration change. The CHIPS Act and the Inflation Reduction Act (IRA) are considered one of President Joe Biden’s signature economic achievements.
According to reports, Raimondo has even instructed her staff to work weekends to meet the ambitious deadlines for distributing subsidies to major companies like Intel, Micron, Samsung, and SK Hynix.
Ramaswamy, however, had an issue with the timing of these efforts. He pointed out that Raimondo claimed that January 20—the inauguration day for President-elect Trump, if he wins—represents a firm deadline for spending, adding, “They are rushing to allocate funds before the power transition.”
Just a day earlier, Ramaswamy had expressed his concerns over what he called the wasteful spending of subsidies under the IRA and CHIPS Act. He warned that the newly proposed Department of Government Efficiency would closely scrutinize these eleventh-hour maneuvers.
In his latest statement, Ramaswamy insisted, “Political appointees benefiting from this last-minute spending spree must be exposed without exception.”
Meanwhile, the U.S. Department of Commerce confirmed on the same day that it will allocate $7.865 billion in subsidies to Intel Corporation under the CHIPS Act. Intel is expected to receive at least $1 billion of this allocation by the end of the year.