Trump Administration Voids Illegal $7.4B Biden Deal with Ally-Staffed Semiconductor Nonprofit
The move follows the discovery that Biden officials bypassed legal restrictions to establish Natcast as a slush fund for loyalists, violating the Government Corporation Control Act by forming a corporation without congressional authorization.
Commerce Secretary Howard Lutnick terminated a Biden-era agreement distributing $7.4 billion in semiconductor research funds through Natcast, a nonprofit unlawfully created and staffed by former administration officials.
The move follows the discovery that Biden officials bypassed legal restrictions to establish Natcast as a slush fund for loyalists, violating the Government Corporation Control Act by forming a corporation without congressional authorization. "From the very beginning Natcast served as a semiconductor slush fund that did nothing but line the pockets of Biden loyalists with American tax dollars," Lutnick stated.
Enacted in 2022, the CHIPS and Science Act allocated $11 billion for the Commerce Department's National Semiconductor Technology Center (NSTC) to advance U.S. chip research and manufacturing. Instead of internal management, Biden appointees handpicked a selection committee—including White House alum Jason Matheny and social justice advocate Brenda Wilkerson—to create Natcast.
Natcast's leadership, including CEO Deirdre Hanford and executives like Donna Dubinsky and Jeremy Licht, consisted largely of former Biden Commerce officials and advisors. On January 16, 2025—days before President Trump's inauguration—the Biden team executed the deal, providing advance payments until 2034 and limiting future termination rights.
Lutnick's review deemed the setup improper, as the CHIPS Act lacks provisions for external entities to act as agencies. "These actions do not just give the appearance of impropriety; they flout federal law," he wrote, reserving rights to pursue remedies against Natcast.
The National Institute of Standards and Technology will now oversee NSTC operations, ensuring taxpayer accountability and American semiconductor leadership. This action echoes EPA Administrator Lee Zeldin's findings of $20 billion funneled to conflicted NGOs before the transition. President Trump's team continues rooting out such abuses to restore fiscal integrity.
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