Discussion Paper

How the CHIPS and Science Act Will Target Economic Development in Distressed Labor Markets

Abstract: As part of this past summer's CHIPS and Science Act, Congress not only funneled $50 billion of federal funding into U.S. semiconductor production, but also allocated $1 billion for a new place-based policy – the Recompete Pilot Program (RPP). The RPP, unrelated to semiconductor production, seeks to boost competitiveness and growth in several of the nation's persistently economically distressed areas. The program intends to target long-term comprehensive economic development and job creation in selected areas by supporting workforce development, business development, and infrastructure activities.

Keywords: CHIPS and Science Act; Recompete Pilot Program; Place-Based Policies; tax policy;

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2022-10-13