Republican leadership has yet to speak out after President Donald Trump’s controversial move to give the U.S. government a 10% equity stake in Intel using CHIPS Act funds.
While some GOP lawmakers are blasting the deal as a betrayal of conservative values, House Speaker Mike Johnson of Louisiana and Senate Majority Leader John Thune of South Dakota have remained silent.
Republicans Split Over Government Ownership
The Trump administration recently converted $8.9 billion in previously allocated CHIPS and Science Act funds into an ownership stake in Intel, one of America’s largest semiconductor manufacturers.
The move has raised eyebrows across Capitol Hill, with several Republicans expressing concern that it flies in the face of free-market economics.
“The U.S. federal government should not be buying companies,” said Rep. Don Bacon of Nebraska.
Sen. Rand Paul of Kentucky went further, calling the move a “terrible idea” and “a step toward socialism.”
Sen. Todd Young of Indiana, who voted for the CHIPS Act, argued the law wasn’t intended to be used this way. “There’s concerns about precedent here, and also concerns about what is allowed under the law,” he said.
Despite the backlash, House Speaker Mike Johnson and Majority Leader John Thune, both of whom did not vote for the original legislation, have not issued public statements.
Their offices also declined to respond to questions from Fox News Digital.
Fox News Presses the Issue
In a recent segment on Fox Business, host David Asman asked economist Art Laffer whether the deal undermines the GOP’s long-standing position against government interference in private enterprise.
Laffer, a former Reagan adviser, criticized the CHIPS Act itself, calling it “a big mistake” and said Intel has “not been a stellar example of a greatly run company.”
But Laffer made a rare exception for Trump: “If anyone is going to take a stake in a company… I would like it to be the government under Donald Trump,” he said.
“Now, if it were Joe Biden or Barack Obama, no chance.”
Laffer said he still doesn’t fully understand the logic behind the deal but added, “If there’s a way of turning that company around and then getting the government out, I have no problem with that whatsoever.”
Bigger Questions Ahead
The CHIPS and Science Act, originally signed under the Biden administration, aimed to boost domestic chip manufacturing following pandemic-era supply chain issues.
Intel was set to receive up to $11 billion in funding, but the Trump administration’s conversion of part of that into equity raises new legal and political questions.
Some Republicans warn that even if Trump’s motives are strategic, future Democratic presidents could use the precedent to expand government control over major firms.
“You may have a good administrator at one point, but you can’t guarantee that for the future,” Asman said.
Laffer agreed, emphasizing that letting companies fail is just as important as helping them succeed: “Free markets operate under a profit and loss system.”
As lawmakers return from their August recess, the Intel deal is expected to spark more debate within a Republican Party already divided over the role of government in business.
IMAGE CREDIT: “Donald Trump” by Gage Skidmore, via Flickr. Licensed under CC BY-SA 2.0. Image adjusted for layout.