Trump Administration Considers Redirecting $2 Billion from CHIPS Act to Critical Minerals

The TRUMP administration is evaluating a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects, according to sources familiar with the matter. The move would tap into funds originally designated for semiconductor research and factory construction, aiming to reduce U.S. reliance on China for minerals essential to electronics and defense.

Commerce Secretary Howard Lutnick's influence over the strategic sector could grow as a result, streamlining the administration's approach to critical minerals. This follows recent scrutiny of the Pentagon's investment in rare earths company MP Materials, which raised questions about the coherence of U.S. mineral strategy.

The Commerce Department oversees the $52.7 billion CHIPS Act, enacted in 2022 to bolster domestic semiconductor production and shift supply chains away from Asia. No official comments were provided by the WHITE House, Pentagon, or MP Materials.