Raimondo’s urgent mission: Leave no cash for Trump

Gina Raimondo, Commerce Secretary Gina Raimondo’s urgent mission is to get as much spending on high-tech out of the door before Donald Trump becomes president.

The Biden administration wants to spend nearly all of the $50 billion in microchip subsidies before Donald Trump becomes president in January. This would cement a huge industrial legacy, before the GOP could reverse course.

In an interview with POLITICO, Raimondo stated that she would like to see almost all the money committed by the time they leave. “That’s my goal and I want to make all of the major announcements as they relate to the large, cutting-edge companies.”

Biden’s signature economic policy would be crowned by her efforts to spend the entire CHIPS Act budget.

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This also reflects the urgency of a number of Biden’s historic spending programs. Many of these could be vulnerable against a Republican White House or Congress that is eager to reduce the most ambitious Democratic expenditure packages.

Chips alone represents a huge undertaking. Congress has allocated $50 billion for subsidies to semiconductor manufacturing and R&D. Only two companies have been awarded binding awards by the Department of Commerce Manufacturing Program. Raimondo must still reach her goal by securing contracts with Intel Micron Samsung and SK hynix – multi-billion dollar deals that at times have been rocky.

Raimondo recently told her staff to continue working through the weekend, and made personal phone calls to the CEOs of tech companies to help speed up the discussions.

Raimondo stated that the upcoming change in administration was “a clear deadline,” which “focuses the mind.” She added, however, that she is not concerned with budget-conscious Republicans taking money back from the program, despite their threat to do so.

Raimondo believes that the CHIPS and Science Act will survive Trump’s arrival.

Under Raimondo, the Chips program has become a cornerstone of her legacy at Commerce. It is now much more focused on National Security than it was before.

The agency that Trump’s administration inherits will be a far cry from the one it inherited four years ago. Trump has nominated Howard Lutnick, a financier, as Commerce Secretary.

In an extensive interview with the POLITICO Tech Podcast, Raimondo gave a broad overview of the changes at Commerce. Under Biden, Commerce has played a major role in the development of Washington’s tech agenda.

The department is responsible for the microchip budget, the new rules governing the use of powerful artificial intelligence models and the organization of the global AI Safety Summit, which will be held in San Francisco on Wednesday and Thursday.

She said: “Some people refer to me as the Sec of Tech, which is correct.”

Although she did not make any predictions about Trump, and was interviewed prior to Lutnick’s appointment, her agenda for the end of her term is clearly shaped the the imminent arrival of the next President.

Raimondo added that she has spoken to Hill Republicans including Texas Senator John Cornyn as recently as last Thursday.

Raimondo explained in the interview how Commerce has evolved, what its challenges are, how it has turned to technology and security for touchstones, and why she does not expect the GOP agenda to be radically changed by the GOP.

Highlights from the interview have been edited and condensed.

ABOUT THE DEPARTMENTS CHANGE TOWARDS HIGH-TECH DEVELOPMENT : “We have really transformed the size and scope of the Commerce Department in the last four years, under the President’s leadership. We’re more focused on technology, and that has a big part to play. Some people refer to me as the Sec of Tech. This is correct. When the G7 holds a conference of tech ministers, I am the one who goes. I am the tech minister of our country.

“But, also, take a look at us. We are more focused on national security than ever before. Because national security revolves more than ever around technology security… National security isn’t only tanks and missiles. It’s semiconductors. “AI models” and semiconductors.

What happens next with the $50 BILLION CIP PROGRAM? “I am driving my team hard right now. All weekend I worked. I would like to have nearly all the money committed by the time we depart. This is the goal. I want to make all of the big announcements in relation to the leading companies. “I would also like to see all the money spent on research and development out the door before we leave.”

WHETHER THE GOPT CAN REDUCE THE MONEY: I don’t have a great deal of concern about the money being reduced, as you suggest. The Commerce Department is unique in that everything we have done, and continue to do, is bipartisan. The CHIPS Act, a national-security program, has bipartisan support even today. It was actually, in some respects, initiated by the Trump administration. Wilbur Ross, [former Commerce] Secretary and Mike Pompeo, [former Secretary] of State sent a letter asking them to come to TSMC. Broadband is a bipartisan issue. Our workforce work is bipartisan. “Anything is possible but I’m not too concerned about it.”

The Future of AI Safety (and the Summit that begins today in San Francisco): “I do not think you can underestimate how important this is. AI is the most important technology of our time. It is a game changer. This [AI Safety Institute Summit] that I am having in San Francisco this week is the first meeting of its kind to take place in the U.S. We will be creating a U.S. task force to test AI models for managing national security capabilities. We will be announcing the new goals of the AI Safety Network. What I really want to do is bring together the best scientists and experts in the field from around the globe, working on behalf of the governments they represent.

This is not unlike other technologies. You know, nuclear technologies or other technologies. In the history of the world, there have been times when new technologies have come forward and have been so powerful that the world has had to agree to standards and regulations and to set up guardrails. Even with our fiercest rivals like China, we have common interests. China has sent some of its scientists to the event. It’s a good thing.