Trump's Intel Stake Plan Backed By Rival Bernie Sanders In Rare Show Of Support

US Senator Bernie Sanders has publicly backed President Donald Trump's initiative to convert federal grants to chipmakers into government equity stakes, in a rare instance of support.

This policy would impact major companies like Intel, which received a substantial grant of $10.9 billion, as per a Reuters report.

Senator Sanders, in a statement to Reuters, said, "If microchip companies make a profit from the generous grants they receive from the federal government, the taxpayers of America have a right to a reasonable return on that investment."

The grants in question are part of the 2022 Chips and Science Act, a legislative effort to encourage semiconductor production in the United States and reduce reliance on Asian manufacturing. The act allocated $39 billion in subsidies for this purpose.

Since his second term began in January, President Trump has pursued several similar policies. He approved a deal allowing AI chip giants Nvidia and AMD to sell chips to China in exchange for the US government receiving 15% of the sales revenue.

Senator Sanders noted that this new policy aligns with an amendment he and Democratic Senator Elizabeth Warren proposed three years ago to the original Chips Act. Their amendment would have required the Treasury Department to receive a warrant, equity stake, or senior debt instrument from any company receiving a grant.

"I am glad the Trump administration is in agreement with the amendment I offered three years ago," Sanders said. "Taxpayers should not be providing billions of dollars in corporate welfare to large, profitable corporations like Intel without getting anything in return."