Exclusive: Trump weighs using $2 billion in CHIPS Act funding for critical minerals, sources say [View all]

Source: Aol/Reuters

Updated Thu, August 21, 2025 at 3:18 PM EDT


(Reuters) -The Trump administration is considering a plan to reallocate at least $2 billion from the CHIPS Act to fund critical minerals projects and boost Commerce Secretary Howard Lutnick's influence over the strategic sector, two sources familiar with the matter told Reuters.

The proposed move would take from funds already allocated by Congress for semiconductor research and chip factory construction, avoiding a fresh spending request as it seeks to reduce U.S. dependence on China for critical minerals used widely in the electronics and defense industries.

Boosting Lutnick's role over critical minerals financing would also help centralize the administration's approach to the sector, a push sought by White House officials after the rollout of the Pentagon investment in rare earths company MP Materials last month sparked questions about the U.S. government's minerals strategy, one source said.

The White House did not respond to requests for comment. Pentagon officials were not immediately available to comment. MP Materials declined to comment.

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