The Trump administration is considering reallocating at least $2 billion from the CHIPS Act to fund critical minerals projects, two sources familiar with the matter told Reuters.
The move would divert money from semiconductor research and factory construction to reduce U.S. dependence on China for minerals vital to electronics and defense. It would also expand Commerce Secretary Howard Lutnick’s role in funding decisions.
“The administration is creatively trying to find ways to fund the critical minerals sector,” one source said.
The CHIPS and Science Act, signed into law in 2022, provides $52.7 billion for semiconductor research and manufacturing. Trump has criticized it as “a horrible, horrible thing” and has sought to renegotiate grants to chipmakers.