Overview
Title
To establish a grant program for education related to semiconductor manufacturing and related industries.
ELI5 AI
The "CHIPS Training in America Act of 2024" is a plan to help people learn and work in making computer parts called semiconductors by giving schools money to teach about them. It encourages schools to work with businesses and the government, but some people are worried it might not give enough money to everyone who needs it or last long enough to make a big difference.
Summary AI
S. 4657, known as the “CHIPS Training in America Act of 2024,” aims to support the education and workforce development for semiconductor manufacturing in the United States. The bill proposes creating a competitive grant program for educational institutions and partnerships to enhance training related to semiconductors and related fields. It also involves setting up a national strategy to grow the domestic workforce in microelectronics and ensure standardized programs and certifications. Additionally, it emphasizes collaboration between educational bodies, government agencies, and industry stakeholders to achieve long-term workforce goals.
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AnalysisAI
General Summary of the Bill
The proposed legislation, titled the "CHIPS Training in America Act of 2024," aims to create a grant program to boost education and workforce development in semiconductor manufacturing and related fields. It intends to amend the existing CHIPS and Science Act of 2022 to enhance education in microelectronics and establish a comprehensive strategy to grow the sector's domestic workforce. The bill involves collaborative efforts between the National Science Foundation, the Department of Commerce, and the National Semiconductor Technology Center to develop standardized educational frameworks and a centralized online resource for workforce development information. Additionally, it establishes a grant program for educational partnerships to promote semiconductor-related training, with a focus on areas with burgeoning microelectronics ecosystems.
Summary of Significant Issues
A number of issues have arisen around this bill:
Eligibility and Scope: The definition of what constitutes an "eligible institution" for grant participation is quite narrow. This narrow classification potentially excludes a broader range of educational institutions that could contribute effectively to workforce development.
Vague Terminology: Terms like "growing microelectronics ecosystems" lack specificity, leading to potential subjective interpretations when deciding which partnerships to support.
Restriction on New Platforms: There is concern that prohibiting the establishment of additional clearinghouses for educational resources could hinder innovation and fail to meet ongoing and evolving needs.
Lack of Accountability: The bill lacks clearly defined accountability measures, particularly in sections concerning workforce goal assessments and role definition among government entities, raising concerns about resource allocation efficacy.
Financial Constraints and Burden: The 50% cap on federal funding for grants might hinder participation from less wealthy institutions or areas in need, potentially limiting the program's inclusivity and efficacy. Additionally, extensive reporting obligations could place undue administrative strain on smaller educational institutions.
Impact on the Public
The bill, if enacted, could have widespread implications for education and job creation in semiconductor and related industries in the U.S. By increasing educational opportunities, especially in cutting-edge technology sectors, it could potentially bolster the economy and maintain the nation’s competitive edge in global semiconductor production.
However, the potential exclusion of a range of educational institutions and the financial limitations on federal contributions might restrict these benefits to more economically prosperous regions or institutions, potentially widening disparities in educational access and regional development.
Impact on Specific Stakeholders
Educational Institutions: Select higher education institutions may experience growth in semiconductor-related programs, benefiting both the institutions and their students. However, the exclusion of certain types of institutions limits broad participation and could disadvantage community colleges or other non-traditional educational paths critical to workforce training.
Students and Workforce: For students, this bill presents opportunities to enter a high-demand field with robust career prospects. However, if educational resources and opportunities are concentrated in well-funded areas, students in underserved regions may not benefit equally.
Industry Stakeholders: Industries related to semiconductor manufacturing stand to gain from a more skilled workforce, potentially fueling innovation and productivity. However, the lack of specificity in industry collaboration in the bill might lead to gaps between workforce training and industry needs.
Overall, while the CHIPS Training in America Act of 2024 has the potential to provide significant advancements in education and workforce opportunities, careful attention is needed to address the outlined issues to ensure wide-ranging and equitable benefits.
Financial Assessment
The "CHIPS Training in America Act of 2024" includes several sections that discuss financial allocations and appropriations related to establishing a grant program for education in semiconductor manufacturing. The following commentary provides insights into these financial aspects as presented in the bill.
Grant Allocation and Federal Cost Share
Section 5 of the bill outlines a grant program wherein eligible partnerships can receive funding to establish or expand workforce development and academic programs related to semiconductor manufacturing. Each grant under this section can be awarded for an amount of up to $7,000,000. This section also specifies that these grants are intended to cover no more than 50% of the total costs associated with the activities funded by the grant.
This maximum federal cost share of 50% raises potential concerns highlighted in the issues section; it may not be sufficient for certain institutions or partnerships, particularly those operating in financially constrained areas. This limitation could impede the inclusivity and effectiveness of the grant program by making it difficult for some organizations to meet the other half of the required funding, thereby potentially marginalizing efforts in less economically advantaged regions.
Appropriations for Fiscal Years 2025-2027
Furthermore, the authorization of appropriations, as specified in Section 5(f)(g)(h), includes $50,000,000 for each fiscal year from 2025 to 2027 to carry out the proposed activities. This financial commitment is crucial for facilitating initial workforce development initiatives. However, appropriations limited to these fiscal years may raise concerns regarding the long-term sustainability and stability of the workforce development initiatives. The finite timeline for appropriations might not provide the extended support required to substantially impact the training and education landscape for semiconductor-related industries over a more prolonged period.
Implications of Reporting and Administrative Burdens
The reporting requirements accompanying the grant allocations pose additional financial considerations. Section 9906A mandates that each eligible partnership receiving a grant must submit detailed annual reports to the National Semiconductor Technology Center. These reports must include specific demographic and completion data for program participants. While necessary for accountability, these reporting requirements may place an administrative burden on smaller institutions or partnerships, potentially diverting resources away from direct program delivery. This administrative aspect could impact the financial efficiency of the grant's use, especially for organizations with limited staffing or administrative capacity.
In summary, the financial allocations within the "CHIPS Training in America Act of 2024" demonstrate a commitment to enhancing workforce development in semiconductor manufacturing through significant, though temporally limited, federal funding. While these financial provisions aim to support the sector's growth, issues such as the cap on federal cost share and the administrative demands tied to reporting may influence how effectively these funds are utilized and the broader inclusivity and reach of the program.
Issues
The definition of 'eligible institution' under Section 5 'Grant program for education related to semiconductor manufacturing and related industries' may exclude other deserving institutions, potentially stifiling broader workforce development opportunities in semiconductor manufacturing.
The definition of 'growing microelectronics ecosystems' is vague in Section 5, leading to subjective interpretations which may result in impartial selection of eligible partnerships.
Section 6 'Prohibition on additional microelectronics education and workforce clearinghouse' restricts the establishment of new clearinghouses, potentially stifling innovation and improvement in educational resources if the existing clearinghouse is insufficient.
The lack of clearly defined accountability mechanisms in Sections 2 and 4 might result in ineffective allocation of resources and failure to meet the established workforce goals.
The maximum federal cost share of 50% in Section 5 may be insufficient for certain institutions or partnerships, possibly limiting the inclusivity and effectiveness of the grant program, especially in financially constrained areas.
The ambiguous language in Section 2 concerning role definitions and responsibilities between the National Science Foundation and the National Semiconductor Technology Center might lead to operational inefficiencies and accountability issues.
The administrative burden of reporting requirements in Section 5 might divert resources from program delivery, especially impacting smaller institutions or partnerships.
In Section 4, the involvement of additional subcommittee members without clear delineation of roles could lead to duplication of efforts and increased administrative overhead.
The authorized appropriations only for fiscal years 2025, 2026, and 2027 in Section 5 may not provide long-term sustainability and stability needed for effective workforce development initiatives.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The first section of this bill is a short title that names the legislation as the “CHIPS Training in America Act of 2024”.
2. Authorization for the creating helpful incentives to produce semiconductors (CHIPS) for America workforce and education fund Read Opens in new tab
Summary AI
The section amends the CHIPS and Science Act of 2022 to require the National Science Foundation, in consultation with the Department of Commerce, to enhance microelectronics education and set new goals for expanding the domestic semiconductor workforce. It mandates the creation of an online resource for workforce development and requires regular evaluation of the program's impact, as well as the submission of workforce goal reports to various congressional committees.
3. Authorization of national semiconductor technology center activities Read Opens in new tab
Summary AI
The section amends the law to include the creation of standardized education frameworks for the microelectronics workforce and allows the National Semiconductor Technology Center, in coordination with the National Science Foundation, to manage an online resource for semiconductor information if both agree.
4. National strategy on microelectronics workforce Read Opens in new tab
Summary AI
The section outlines a national strategy for developing the microelectronics workforce. It requires a subcommittee, including the Secretaries of Labor, Education, and Veterans Affairs, to create a 5-year plan involving various stakeholders to ensure a skilled workforce. The strategy will define specific goals, coordinate federal programs, and be updated every 5 years, with progress publicly available online.
5. Grant program for education related to semiconductor manufacturing and related industries Read Opens in new tab
Summary AI
The bill section creates a grant program aimed at improving education and workforce development related to semiconductor manufacturing and related fields. It allows eligible partnerships, consisting of educational institutions, covered entities, and governmental bodies, to receive grants that can be used for workforce training programs, prioritizing areas with growing microelectronics industries; the grants can be up to $7 million and last for a maximum of five years, with the federal government covering up to 50% of the costs.
Money References
- — “(1) AMOUNT.—A grant awarded under this section shall be for an amount equal to or less than $7,000,000.
- “(h) Authorization of appropriations.—There are authorized to carry out this section $50,000,000 for each of fiscal years 2025, 2026, and 2027.”.
9906A. Workforce Development Activities Read Opens in new tab
Summary AI
The section describes a program where the National Semiconductor Technology Center provides grants to partnerships, including schools and community organizations, to create or expand educational programs in semiconductor manufacturing and related fields. These grants, which can be up to $7 million over five years, aim to support workforce development, with a focus on areas with growing technology industries, and require matching funds from non-federal sources.
Money References
- — (1) AMOUNT.—A grant awarded under this section shall be for an amount equal to or less than $7,000,000.
- (g) Report.— (1) REPORT TO THE NATIONAL SEMICONDUCTOR TECHNOLOGY CENTER.—Each eligible partnership receiving a grant under this section shall prepare and submit an annual report to the National Semiconductor Technology Center that contains information about each of the following with respect to individuals participating in a program funded by a grant under this section: (A) The total number of participants, disaggregated by sex, race, and ethnicity. (B) The total number of participants who completed the program. (C) The indicators required by section 116(b)(2)(A)(i) of the Workforce Innovation and Opportunity Act (29 U.S.C. 3141(b)(2)(A)(i)). (2) REPORT TO CONGRESS.—Not later than 180 days of receiving the annual report under paragraph (1), the National Semiconductor Technology Center shall— (A) prepare and submit a report containing a summary of the information described in paragraph (1) to the Committee on Commerce, Science, and Transportation and the Committee on Health, Education, Labor, and Pensions of the Senate and the Committee on Science, Space, and Technology and the Committee on Education and the Workforce of the House of Representatives; and (B) make such report publicly available. (h) Authorization of appropriations.—There are authorized to carry out this section $50,000,000 for each of fiscal years 2025, 2026, and 2027. ---
6. Prohibition on additional microelectronics education and workforce clearinghouse Read Opens in new tab
Summary AI
A federal agency is prohibited from creating a new microelectronics education and workforce platform that is the same as or an alternative to the existing online clearinghouse established by the CHIPS and Science Act of 2022.