The Trump administration’s big Intel investment comes from already awarded grants

The Trump administration announced an $8.9 billion investment in Intel, which the company described as government funds previously awarded but not yet disbursed, rather than new funding. This amount includes $5.7 billion from the Biden administration’s CHIPS Act and $3.2 billion from the Secure Enclave program. Despite President Trump’s claim that the U.S. paid nothing for these shares and his characterization of the deal as beneficial for both America and Intel, the funds are essentially government grants being converted into equity. Trump has been critical of the CHIPS Act and urged House Speaker Mike Johnson to repeal it. Intel had already received $2.2 billion in CHIPS Act funding and requested an additional $850 million reimbursement that had not yet been paid. Some legal experts question whether the CHIPS Act permits the government to convert grants into equity, suggesting potential legal challenges to the deal. Trump also previously accused Intel CEO Lip-Bu Tan of conflicts of interest, though he later praised Tan for negotiating