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Google

Google Didn't Show Bias in Filtering Campaign-Ad Pitches, FEC Says (wsj.com) 47

The Federal Election Commission has dismissed a complaint from Republicans that Google's Gmail app aided Democratic candidates by sending GOP fundraising emails to spam at a far higher rate than Democratic solicitations. From a report: The Republican National Committee and others contended that the alleged benefit amounted to unreported campaign contributions to Democrats. But in a letter to Google last week, the FEC said it "found no reason to believe" that Google made prohibited in-kind corporate contributions, and that any skewed results from its spam filter algorithms were inadvertent. "Google has credibly supported its claim that its spam filter is in place for commercial reasons and thus did not constitute a contribution" within the meaning of federal campaign laws, according to an FEC analysis reviewed by The Wall Street Journal.

The Republican National Committee, the National Republican Senatorial Committee and the National Republican Congressional Committee complained to the FEC last year, citing an academic study that showed that nearly 70% of emails from Republican candidates were sent to spam compared with fewer than 1 in 10 from Democrat candidates from 2019 to 2020. The RNC and other campaign committees argued that Google's "overwhelmingly disproportionate suppression of Republican emails" constituted an illegal corporate contribution to Democratic candidates. But the FEC disagreed, finding that Google established that it maintains its spam filter settings to aid its business in keeping out malware, phishing attacks and scams, and not for the purpose of benefiting any political candidates.

United States

Joe Biden: Republicans and Democrats, Unite Against Big Tech Abuses (wsj.com) 147

Congress can find common ground on the protection of privacy, competition and American children, says U.S. President Joe Biden. In an op-ed at Wall Street Journal, he shares why he has pushed for legislation to hold Big Tech accountable. From the start of his administration, says Biden, he has embraced three broad principles for reform: First, we need serious federal protections for Americans' privacy. That means clear limits on how companies can collect, use and share highly personal data -- your internet history, your personal communications, your location, and your health, genetic and biometric data. It's not enough for companies to disclose what data they're collecting. Much of that data shouldn't be collected in the first place. These protections should be even stronger for young people, who are especially vulnerable online. We should limit targeted advertising and ban it altogether for children.

Second, we need Big Tech companies to take responsibility for the content they spread and the algorithms they use. That's why I've long said we must fundamentally reform Section 230 of the Communications Decency Act, which protects tech companies from legal responsibility for content posted on their sites. We also need far more transparency about the algorithms Big Tech is using to stop them from discriminating, keeping opportunities away from equally qualified women and minorities, or pushing content to children that threatens their mental health and safety.

Third, we need to bring more competition back to the tech sector. My administration has made strong progress in promoting competition throughout the economy, consistent with my July 2021 executive order. But there is more we can do. When tech platforms get big enough, many find ways to promote their own products while excluding or disadvantaging competitors -- or charge competitors a fortune to sell on their platform. My vision for our economy is one in which everyone -- small and midsized businesses, mom-and-pop shops, entrepreneurs -- can compete on a level playing field with the biggest companies. To realize that vision, and to make sure American tech keeps leading the world in cutting-edge innovation, we need fairer rules of the road. The next generation of great American companies shouldn't be smothered by the dominant incumbents before they have a chance to get off the ground.

Republicans

GOP-Led House To Probe Alleged White House Collusion With Tech Giants (wsj.com) 269

Republicans in the House plan to scrutinize communications between the Biden administration and big technology and social-media companies to probe whether they amounted to the censorship of legitimate viewpoints on issues such as Covid-19 that ran counter to White House policy. WSJ: House Republicans are expected as soon as Tuesday to launch the Select Subcommittee on the Weaponization of the Federal Government. The panel is expected to seek to illuminate what some Republicans say have been efforts by the Biden administration to influence content hosted by companies such as Facebook parent Meta Platforms and Alphabet, owner of YouTube and Google.

The panel will examine, among other things, how the executive branch works with the private sector, nonprofit entities or other government agencies to "facilitate action against American citizens," such as alleged violations of their free-speech rights, according to a draft resolution to establish it. A White House spokesman dismissed the effort. "House Republicans continue to focus on launching partisan political stunts," said spokesman Ian Sams, "instead of joining the president to tackle the issues the American people care about most like inflation."

United States

McCarthy's Fast Start: Big Tech is a Top Target (axios.com) 312

House Republicans plan to launch a new investigative panel this week that will demand copies of White House emails, memos and other communications with Big Tech companies, Axios reported Monday, citing sources. From the report: Speaker Kevin McCarthy plans a quick spate of red-meat actions and announcements to reward hardliners who backed him through his harrowing fight for the gavel. The new panel, the Select Subcommittee on the Weaponization of the Federal Government, is partly a response to revelations from Elon Musk in the internal documents he branded the "Twitter Files."

The subcommittee will be chaired by House Judiciary Chairman Jim Jordan -- a close McCarthy ally, and a favorite of the hard right. The probe into communications between tech giants and President Biden's aides will look for government pressure that could have resulted in censorship or harassment of conservatives -- or squelching of debate on polarizing policies, including the CDC on COVID. The request for documents will be followed by "compulsory processes," including subpoenas if needed, a GOP source tells Axios. In December, Jordan wrote letters to top tech platforms asking for information about "'collusion' with the Biden administration to censor conservatives on their platforms."

United States

Tech Groups Ask Supreme Court To Review Texas Social Media Law 115

Trade groups that represent Meta and Alphabet's Google said they asked the US Supreme Court to overturn a Texas law that would sharply restrict the editorial discretion of social media companies. From a report: The appeal by NetChoice and the Computer & Communications Industry Association contends the Texas law violates the First Amendment by forcing social media companies to disseminate what they see as harmful speech and putting platforms at risk of being overrun by spam and bullying. The law "would wreak havoc by requiring transformational change to websites' operations," the groups argued. The New Orleans-based 5th US Circuit Court of Appeals upheld the law in September but left the measure on hold to allow time for an appeal to the Supreme Court.

The Texas law bars social media platforms with more than 50 million users from discriminating on the basis of viewpoint. Texas Governor Greg Abbott and other Republicans say the law is needed to protect conservative voices from being silenced. The appeal adds a new layer to a Supreme Court term that could reshape the legal rules for online content. The justices are already considering opening social media companies to lawsuits over the targeted recommendations they make to users.
Social Networks

GOP-Led States Ban TikTok On Government Devices (axios.com) 84

A growing number of GOP-led states are barring state employees and contractors from using TikTok on government-issued devices as the FBI warns of possible threats to national security posed by the Chinese-owned social media platform. Texas became the latest to do so on Wednesday, joining South Dakota, South Carolina and Maryland, all of which banned the app on government devices in the past week. Wisconsin Republicans are urging their Democratic governor to do the same. Axios reports: "[U]nder China's 2017 National Intelligence Law, all businesses are required to assist China in intelligence work including data sharing, and TikTok's algorithm has already censored topics politically sensitive to the Chinese Communist Party," Texas Gov. Greg Abbott said in a letter to state officials Wednesday.

"There may be no greater threat to our personal safety and our national security than the cyber vulnerabilities that support our daily lives," Maryland Gov. Larry Hogan, whose directive also banned certain Russia-based platforms, said in a statement.

"Protecting our State's critical cyber infrastructure from foreign and domestic threats is key to ensuring the health, safety, and well-being of our citizens and businesses," South Carolina Gov. Henry McMaster wrote in a letter requesting that the state's Department of Administration block access to the app.

"South Dakota will have no part in the intelligence gathering operations of nations who hate us," South Dakota Gov. Kristi Noem said in a press release.

Twitter

What Happened After Matt Taibbi Revealed Twitter's Deliberations on Hunter Biden Tweets? (wired.com) 377

"Twitter CEO Elon Musk turned to journalist Matt Taibbi on Friday to reveal the decision-making behind the platform's suppression of a 2020 article from the New York Post regarding Hunter Biden's laptop," reports Newsweek.

"Taibbi later deleted a tweet showing [former Twitter CEO] Jack Dorsey's email address," adds the Verge, covering reactions to Taibbi's thread — and the controversial events that the tweets described: At the time, it was not clear if the materials were genuine, and Twitter decided to ban links to or images of the Post's story, citing its policy on the distribution of hacked materials. The move was controversial even then, primarily among Republicans but also with speech advocates worried about Twitter's decision to block a news outlet. While Musk might be hoping we see documents showing Twitter's (largely former) staffers nefariously deciding to act in a way that helped now-President Joe Biden, the communications mostly show a team debating how to finalize and communicate a difficult moderation decision.
Taibbi himself tweeted that "Although several sources recalled hearing about a 'general' warning from federal law enforcement that summer about possible foreign hacks, there's no evidence - that I've seen - of any government involvement in the laptop story."

More from the Verge: Meanwhile, Taibbi's handling of the emails — which seem to have been handed to him at Musk's direction, though he only refers to "sources at Twitter" — appears to have exposed personal email addresses for two high-profile leaders: Dorsey and Representative Ro Khanna. An email address that belongs to someone Taibbi identifies as Dorsey is included in one message, in which Dorsey forwards an article Taibbi wrote criticizing Twitter's handling of the Post story. Meanwhile, Khanna confirmed to The Verge that his personal Gmail address is included in another email, in which Khanna reaches out to criticize Twitter's decision to restrict the Post's story as well.

"As the congressman who represents Silicon Valley, I felt Twitter's actions were a violation of First Amendment principles so I raised those concerns," Khanna said in a statement to The Verge. "Our democracy can only thrive if we are open to a marketplace of ideas and engaging with people with whom we disagree."

The story also revealed the names of multiple Twitter employees who were in communications about the moderation decision. While it's not out of line for journalists to report on the involvement of public-facing individuals or major decision makers, that doesn't describe all of the people named in the leaked communications.... "I don't get why naming names is necessary. Seems dangerous," Twitter co-founder Biz Stone wrote Friday in apparent reference to the leaks.... The Verge reached out to Taibbi for comment but didn't immediately hear back.

Twitter, which had its communications team dismantled during layoffs last month, also did not respond to a request for comment.

Wired adds: What did the world learn about Twitter's handling of the incident from the so-called Twitter Files? Not much. After all, Twitter reversed its decision two days later, and then-CEO Jack Dorsey said the moderation decision was "wrong."
In other news, "Twitter will start showing view count for all tweets," Elon Musk announced Friday, "just as view count is shown for all videos." And he shared other insights into his plans for Twitter's future.

"Freedom of speech doesn't mean freedom of reach. Negativity should & will get less reach than positivity."
United States

Congressmembers Tried to Stop the SEC's Inquiry Into FTX (prospect.org) 147

The Securities and Exchange Commission was seeking information from collapsed cryptocurrency exchange FTX earlier this year, the Prospect reported Wednesday, bringing a new perspective to an effort by a bipartisan group of congressmembers to slow down that investigation. From the report: The March letter [PDF] from eight House members -- four Democrats and four Republicans -- questioned the SEC's authority to make informal inquiries to crypto and blockchain companies, and intimated that the requests violated federal law. Rep. Tom Emmer (R-MN), whom the Republican caucus just elected as majority whip, the number three position in the House GOP leadership, led the letter. In a contemporaneous Twitter thread, Emmer wrote: "My office has received numerous tips from crypto and blockchain firms that SEC Chair Gary Gensler's information reporting 'requests' to the crypto community are overburdensome, don't feel particularly ... voluntary ... and are stifling innovation."

We now know that FTX was one of those firms receiving information requests from the SEC, about the very activities that have brought down the firm. This raises the question of whether Emmer and the other congressmembers were acting on behalf of FTX (which has been credibly accused of snatching customer money to make risky bets) to try to chill an ongoing investigation from an independent regulatory and law enforcement agency. Some of the "Blockchain Eight," as the Prospect termed them in March, have benefited from crypto largesse. Five of the eight members received campaign donations from FTX employees, ranging from $2,900 to $11,600. Rep. Ted Budd (R-NC), one of the signatories, received half a million dollars in support from a Super PAC created by FTX co-CEO Ryan Salame.

Communications

Trump Posted Classified Satellite Imagery On Twitter As President (npr.org) 342

According to documents recently declassified by the National Geospatial-Intelligence Agency (NGA), former President Donald Trump posted a classified satellite image of a failed rocket launch in Iran on Twitter in 2019. NPR reports: Now, three years after Trump's tweet, the National Geospatial-Intelligence Agency (NGA) has formally declassified the original image. The declassification, which came as the result of a Freedom of Information Act request by NPR, followed a grueling Pentagon-wide review to determine whether the briefing slide it came from could be shared with the public. Many details on the original image remain redacted -- a clear sign that Trump was sharing some of the U.S. government's most prized intelligence on social media, says Steven Aftergood, specialist in secrecy and classification at the Federation of American Scientists. "He was getting literally a bird's eye view of some of the most sensitive US intelligence on Iran," he says. "And the first thing he seemed to want to do was to blurt it out over Twitter." "[A]erospace experts determined the photo was taken by a classified spacecraft called USA 224, believed to be a multibillion-dollar KH-11 reconnaissance aircraft," adds Gizmodo. "The spacecraft is similar to the Hubble Telescope, but instead of getting a closer look at the stars, it views the Earth's surface."
Government

Why California's EV-Rebate Proposition Lost (kron4.com) 122

California's EV-funding proposition 30 "has suffered an unambiguous defeat," reports Bay City News.

The measure would've increased taxes by 1.75% on income above $2 million a year (for roughly 43,000 California multimillionaires) to fund electric car rebates and combat wildfires. "In the statewide vote count as of late Wednesday, 59% rejected the proposal."

So what happened? Before the election the New York Times described the fight: On one side, environmentalists have teamed up with firefighters, Democrats and Lyft, the ride-share company, which has poured more than $45 million into its campaign to pass a climate initiative. On the other, [Democrat] Governor Gavin Newsom has aligned himself with California billionaires, teachers and Republicans in opposition....

Proponents say the measure would raise money from those who can afford it to fund critical state mandates on electric vehicle sales and ride-share miles that have been highly promoted but not fully funded. Opponents argue it would require taxpayers to foot the bill for electric vehicle subsidies that Uber and Lyft would eventually have to pay for on their own. In August, California regulators voted to ban the sale of all gasoline-powered cars in the state by 2035, which was hailed by environmentalists — and by Newsom — as a significant step in combating climate change. Last year, the state implemented an even earlier standard for ride-share companies like Lyft and Uber: 90 percent of ride-share drivers' miles will have to be in electric vehicles by 2030.

Left out of those mandates was an explanation of who would be expected to pay for the switch to greener cars.... The opposition to the measure, which includes some of the wealthy individuals who would have to pay more in taxes and business groups opposed to tax increases, argues that the proposal benefits corporations, because Uber and Lyft would eventually have to comply with the new state electric vehicle mandates and would have to cough up the money to do so on their own, most likely by offering subsidies for their drivers to buy battery-powered cars.

The "no" campaign got a huge boost over the summer from Newsom, who, despite his focus on fighting climate change, has emerged as its highest-profile opponent and appeared in an television advertisement attacking Lyft in September. "Prop. 30 is being advertised as a climate initiative," Newsom says in the ad as he strolls across the screen. "But in reality, it was devised by a single corporation, to funnel state income taxes to benefit their company."

Currently Lyft's gig workers use their own cars — but was the opposition looking ahead to a future where Lyft owns its own fleet of self-driving (and electric) robo-taxis?

In any case, Proposition 30 "was among the country's top five ballot measures this Election Day in terms of total contributions," reports Axios, "with nearly $73 million spent by parties on either side, per Ballotpedia. The results "are an unfortunate setback for the climate movement," Lyft — which spent about $45 million supporting Prop 30 — said in a statement Wednesday.

On the other side of the country, Massachusetts voters approved a new 4% tax on those making more than $1 million for transportation and education funding, broadly speaking. And New Yorkers OK'd $4.2 billion in bond sales to fund climate change mitigation and resiliency programs.

United States

US May Soon Push Ambitious Antitrust Crackdown on Big Tech in Congress (yahoo.com) 44

America's federal government "is planning a post-midterms push for antitrust legislation that would rein in the power of the world's largest tech companies," reports Bloomberg, "a last-ditch effort to get a stalled pair of bills through Congress before a predicted Republican takeover in January." The lame-duck period after Tuesday's U.S. election may be the last shot to pass the landmark legislation, the American Innovation and Choice Online Act and Open App Markets Act. The bills, which would prevent the tech companies from using their platforms to thwart competitors, would be the most significant expansion of antitrust law in over a century.... Republicans have made it clear that they won't support the bills if they retake control of either chamber of Congress. That has supporters urging the White House to mount a push in the final weeks before a new Congress is seated early next year.

Advocates have criticized the White House for failing to prioritize the legislation, which major tech companies have spent more than $100 million to defeat. Alphabet's Google, Amazon, Apple and Meta all oppose the bill. "There is bipartisan support for antitrust bills, and no reason why Congress can't act before the end of the year," said White House spokesperson Emilie Simons. "We are planning on stepping up engagement during the lame duck on the president's agenda across the board, antitrust included." Versions of both bills have made it through committees but await action by the full House and Senate.

If Congress doesn't act before the end of the year, it will likely be years before U.S. lawmakers pass any legislation to crack down on the power of the tech giants.

United States

US Public's Trust in Science Shows Growing Partisan Gap (arstechnica.com) 219

The Pew Research Center has released the latest iteration of its surveys of Americans' views of science and scientists. From a report: On the most basic level, they see a drop in the public's opinion of scientists since the height of the pandemic in 2020. But, as always, the situation is more complex when the numbers are examined closely. In general, there was a drop in trust of almost every occupation during that time period, and in the case of scientists, this largely represents a return to pre-pandemic popularity. The exception is that nearly everyone is less likely to say that scientists should get involved in policy decisions, with Republicans feeling especially strong in this regard.
Businesses

Stock Trade Ban For Congress Is Being Readied For Release In US House (bloomberg.com) 107

An anonymous reader quotes a report from Bloomberg: Senior House Democrats are poised to introduce long-promised legislation to restrict stock ownership and trading by members of Congress, senior government officials and Supreme Court justices. The bill would apply to the spouses and dependent children of those officials, according to an outline sent to lawmaker offices last week by House Administration Chair Zoe Lofgren. The restrictions also cover "commodities, futures, cryptocurrency, and other similar investments," according to the outline. The legislation would require public officials to either divest current holdings or put them in a blind trust. Investments in mutual funds or other widely held investment funds and government bonds would be allowed.

The bill may be released as soon as Monday, according to a person familiar with the matter. It hasn't been scheduled for a vote, though House Majority Leader Steny Hoyer has said it's possible it could come to the floor this week in the middle of an already jam-packed schedule before lawmakers go on break ahead of the November midterm election. While conservative Republicans and progressive Democrats alike have been clamoring for restrictions on stock trades by members of Congress to avoid conflicts of interest, legislation has been hung up by questions about how broad to make the ban and whether to include family members. A group of senators is working on their own version of the legislation and there's little chance of Congress taking any final action before the midterms. [...]

Another potential point of contention is applying the requirements to the Supreme Court. The Congressional Research Service in an April report said that Congress imposing a code of conduct on the judiciary would "raise an array of legal questions," including whether it would violate the constitutional separation of powers. Justices and lower court judges already file annual financial disclosures and are barred from participating in cases where there's a direct conflict of interest. Despite that, the CRS report says that the Supreme Court has never directly addressed "whether Congress may subject Supreme Court Justices to financial reporting requirements or limitations upon the receipt of gifts."
"The current law doesn't prohibit lawmakers from owning or trading individual securities, but it bans members of Congress from using nonpublic information available to them for personal benefit," notes the report. "It requires any transaction be disclosed within 45 days."

Further reading: TikTokers Are Trading Stocks By Copying What Members of Congress Do
United States

BlackRock, Which Manages Over $10 Trillion, Strikes Back at ESG Critics (axios.com) 114

Investment giant BlackRock is rebutting Republican politicians over its ESG investment policies, arguing that its critics are wrong on both the science and the cents. Axios: Private equity and other investment fund managers should pay close attention, because they could be next in the line of fire. Last month, 18 state attorneys general sent a letter to BlackRock, essentially arguing that its goal of moving toward a net-zero economy is in conflict with its fiduciary duty. Two states, Texas and West Virginia, also banned state entities from doing business with BlackRock, arguing (incorrectly) that the firm boycotts fossil fuel company investments.

Axios' Alayna Treene reports that the BlackRock blowback is part of a coordinated lobbying effort, writing: "The crusade against ESG investments is something many conservatives feel deeply about -- they view these companies as cultural enemies who are misusing investment funds to promote pro-climate policies... House Republicans plan to make an assault on ESG a central part of their legislative and investigative agenda if they take back the majority in November's midterms." BlackRock yesterday responded to the AG's letter, with a 10-page letter of its own. After again disputing the "boycott" accusations, the firm wrote: "We believe investors and companies that take a forward-looking position with respect to climate risk and its implications for the energy transition will generate better long-term financial outcomes." BlackRock is the world's largest asset manager, and its CEO Larry Fink has been very outspoken about ESG initiatives (with declining emphasis as the acronym progresses). In other words, it's a juicy target.

Government

Big Tech's $95 Million Spending Spree Leaves Antitrust Bill On Brink of Defeat (bloomberg.com) 46

An anonymous reader quotes a report from Bloomberg: A high-profile push by Congress to rein in the nation's biggest internet companies is at risk of failing with time running out to pass major legislation ahead of midterm elections. Alphabet's Google, Apple, Amazon.com and Meta and their trade groups have poured almost $95 million into lobbying since 2021 as they seek to derail the American Innovation and Choice Online Act, which has advanced further than any US legislative effort to address the market power of some of the world's richest companies. After a nearly two-year battle, the bill is now at a critical juncture as the Senate returns this week for a final stretch before the November midterms. Backers of the measure swear they have the necessary votes, yet it's unclear if they do, and the Senate will be busy with other must-pass spending legislation.

Although clipping the wings of tech giants through antitrust reform had support from both Republicans and Democrats during this Congress, a likely GOP majority in the House next year is expected to focus on allegations that internet platforms squelch conservative viewpoints. That's why tech lobbyists have been trying to run out the clock. Leading Republicans like California's Kevin McCarthy, who is on track to become Speaker under a GOP majority, have publicly opposed the antitrust push. The legislation's sponsors can see the window narrowing. Antitrust advocates were expecting a vote before Congress adjourned for four weeks in August. But Schumer told donors in July that it didn't have enough votes to pass.

The bill has 13 co-sponsors in the Senate, where it would need 60 votes to pass and be sent to the House. Supporters like Yelp's head of public policy Luther Lowe, a longtime Google critic, argue that enough undecided lawmakers would vote for the measure if it came to the floor. A Schumer spokesperson said he's working with the bill's sponsors to find the necessary votes and he still plans to bring it to the floor. The bill was approved by both the House and Senate Judiciary Committees on strong bipartisan votes. Several amendments have addressed concerns about privacy and security issues. What hasn't killed the bill "has made it stronger," said Yelp's Lowe. The measure seeks to restrict the companies from favoring their own products, so that competitors who depend on these platforms to reach consumers wouldn't be at a disadvantage. That could impact the design of Google Maps, the display of Apple Music on an iPhone or the prominence of Amazon Basics on the company's e-commerce site.
"I don't see it going to the floor," said Michael Petricone, senior vice president of government affairs at the Consumer Technology Association, a trade group that counts Amazon, Google and Facebook among its members. "With an election coming up, I expect senators to come back and focus on issues that are popular with voters. Tech regulation is not one of those issues."
Google

US Approves Google Plan To Let Political Emails Bypass Gmail Spam Filter (arstechnica.com) 94

The US Federal Election Commission approved a Google plan to let campaign emails bypass Gmail spam filters. From a report: The FEC's advisory opinion adopted in a 4-1 vote said Gmail's pilot program is permissible under the Federal Election Campaign Act and FEC regulations "and would not result in the making of a prohibited in-kind contribution." The FEC said Google's approved plan is for "a pilot program to test new Gmail design features at no cost on a nonpartisan basis to authorized candidate committees, political party committees, and leadership PACs." On July 1, Google asked the FEC for the green light to implement the pilot after Republicans accused the company of giving Democrats an advantage in its algorithms. Republicans reportedly could have avoided some of their Gmail spam problems by using the proper email configuration. At a May 2022 meeting between Senate Republicans and Google's chief legal officer, "the most forceful rebuke" was said to come "from Sen. Marco Rubio (R-Fla.), who claimed that not a single email from one of his addresses was reaching inboxes," The Washington Post reported in late July. "The reason, it was later determined, was that a vendor had not enabled an authentication tool that keeps messages from being marked as spam, according to people briefed on the discussions."
United States

Senate Passes $280 Billion Industrial Policy Bill To Counter China (nytimes.com) 62

The Senate on Wednesday passed an expansive $280 billion bill aimed at building up America's manufacturing and technological edge to counter China, embracing in an overwhelming bipartisan vote the most significant government intervention in industrial policy in decades. From a report: The legislation reflected a remarkable and rare consensus in an otherwise polarized Congress in favor of forging a long-term strategy to address the nation's intensifying geopolitical rivalry with Beijing, centered around investing federal money into cutting-edge technologies and innovations to bolster the nation's industrial, technological and military strength.

It passed on a lopsided bipartisan vote of 64 to 33, with 17 Republicans voting in support. The margin illustrated how commercial and military competition with Beijing -- as well as the promise of thousands of new American jobs -- has dramatically shifted longstanding party orthodoxies, generating agreement among Republicans who once had eschewed government intervention in the markets and Democrats who had resisted showering big companies with federal largess. "No country's government -- even a strong country like ours -- can afford to sit on the sidelines," Senator Chuck Schumer, Democrat of New York and the majority leader who helped to spearhead the measure, said in an interview. "I think it's a sea change that will stay."

United States

$79B to Boost US Semiconductor Production Opposed by 31 Republican Senators - and Bernie Sanders (apnews.com) 129

A long-awaited bill in the U.S. Congress proposes $79 billion (over 10 years) to boost U.S. semiconductor production, reports the Associated Press, "mostly as a result of new grants and tax breaks that would subsidize the cost that computer chip manufacturers incur when building or expanding chip plants in the United States."

But opposing the bill are 31 Republican senators — and democratic socialist senator Bernie Sanders: Supporters say that countries all over the world are spending billons of dollars to lure chipmakers. The U.S. must do the same or risk losing a secure supply of the semiconductors that power the nation's automobiles, computers, appliances and some of the military's most advanced weapons systems. Sanders (Independent — Vermont), and a wide range of conservative lawmakers, think tanks and media outlets have a different take. To them, it's "corporate welfare...."

"Not too many people that I can recall — I have been all over this country — say: 'Bernie, you go back there and you get the job done, and you give enormously profitable corporations, which pay outrageous compensation packages to their CEOs, billions and billions of dollars in corporate welfare,'" Sanders said.

Senator Mitt Romney (Republican — Utah), is among the likely Republican supporters. Asked about the Sanders' argument against the bill, Romney said that when other countries subsidize the manufacturing of high technology chips, the U.S. must join the club. "If you don't play like they play, then you are not going to be manufacturing high technology chips, and they are essential for our national defense as well as our economy," Romney said....

"My fear is that more and more companies will locate their manufacturing facilities in other countries and that we will be increasingly vulnerable," said Senator Susan Collin (Republican — Maine).

The bill's supporters remain confident it will pass the U.S. Senate, but then "the window for passing the bill through the House is narrow if progressives join with Sanders and if most Republicans line up in opposition based on fiscal concerns.

"The White House says the bill needs to pass by the end of the month because companies are making decisions now about where to build."
The Media

Media Confidence Ratings at Record Lows (gallup.com) 326

Gallup: Americans' confidence in two facets of the news media -- newspapers and television news -- has fallen to all-time low points. Just 16% of U.S. adults now say they have "a great deal" or "quite a lot" of confidence in newspapers and 11% in television news. Both readings are down five percentage points since last year. Gallup has tracked Americans' confidence in newspapers since 1973 and television news since 1993 as part of its annual polling about major U.S. institutions. The latest readings are from a June 1-20 poll that saw declines in confidence ratings for 11 of the 16 institutions measured and no improvements for any. Television news and newspapers rank nearly at the bottom of that list of institutions, with only Congress garnering less confidence from the public than TV news. While these two news institutions have never earned high confidence ratings, they have fallen in the rankings in recent years.

A majority of Americans have expressed confidence in newspapers only once -- in 1979, when 51% did. But there is a wide margin between that and the second-highest readings of 39% in 1973 and 1990. The trend average for newspapers is 30%, well above the latest reading of 16%, which is the first time the measure has fallen below 20%. The percentage of Americans who say they have "very little" or volunteer that they have no confidence is currently the highest on record, at 46%. Confidence in television news has never been higher than its initial 46% reading in 1993 and has averaged 27%, considerably higher than the current 11%. This is the fourth consecutive year that confidence in TV news is below 20%. And for just the second time in the trend, a majority of Americans, 53%, now say they have very little or no confidence at all in TV news. Republicans' (5%) and independents' (12%) confidence in newspapers is the lowest on record for these party groups, while Democrats' (35%) has been lower in the past. Democrats' confidence in newspapers rose to the 42% to 46% range during the Donald Trump administration but fell when President Joe Biden took office.

Intel

US Chip Industry Split Over CHIPS Act Benefits To Intel (reuters.com) 71

Several U.S. semiconductor firms are deliberating whether to oppose a package of chip industry subsidies if the final language of the legislation awaiting a vote in the Senate disproportionately benefits manufacturers like Intel, sources familiar with the matter told Reuters. From the report: Senate Majority Leader Chuck Schumer has told lawmakers that a vote could come as early as Tuesday on a slimmed-down set of bills to bolster the U.S. computer chip industry, after Democratic lawmakers cleaved them from a larger, more contentious bill. The bills are aimed at making the U.S. more competitive against a rising China, whose chip industry has grown rapidly over the last five years to account for almost 10% of global sales. The measures include $52 billion in subsidies and an investment tax credit to boost U.S. manufacturing. The bills have bipartisan support, though Republicans may vote against the chip measures unless Democrats give up plans to try to push through unrelated spending bills that Republicans oppose. But a rift is emerging within the chip industry itself, with some players concerned the final language of the legislation could provide disproportionate support to manufacturers like Intel while doing little to support other chip makers like Advanced Micro Devices, Qualcomm and Nvidia.

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