Why It Matters
The House Ways and Means Trade Subcommittee hearing on "Maintaining American Innovation and Technology Leadership" on January 13 will determine how Congress addresses America’s most urgent competitive challenges.
At stake: U.S. dominance in semiconductors, artificial intelligence, and digital trade—technologies central to economic growth and military strength.
Who’s affected: American tech companies facing competition from China, semiconductor manufacturers uncertain about tariffs and federal funding, regional innovation hubs dependent on scaled-back federal grants, tech workers, and national security officials concerned about foreign acquisition of U.S. technology.
The core tensions: The U.S. controls 98-99 percent of advanced AI chip production, yet the administration has wavered on export controls, allowing some sales to China. Meanwhile, Chinese companies are acquiring U.S. biotech licensing deals at unprecedented rates.
Semiconductor manufacturers face contradictory pressures: industry leaders cite tariffs as their top concern, yet the administration is pursuing tariff increases. Federal tech hub funding collapsed from ambitious plans to just two implementation grants.
Tech companies have mounted a $150 million lobbying campaign to shape federal AI policy and export controls.
Broader Context
Congress is intensifying focus on U.S. technology leadership amid mounting competition with China. The House Ways and Means Trade Subcommittee hearing reflects sustained congressional concern over semiconductors, artificial intelligence, and digital trade.
China’s rapid advancement has prompted bipartisan action. Members have introduced legislation targeting AI security, semiconductor manufacturing incentives, and digital trade enforcement. The tech industry has launched massive lobbying—over $90 million spent on AI-related advocacy in 2025 alone—to shape policies on export controls and tax credits.
Federal innovation funding faces budget constraints complicating regional technology hub development. Congress has introduced proposals to strengthen digital trade agreements, protect intellectual property, and secure semiconductor supply chains.
The Agenda
The hearing will feature witnesses from across the technology sector. The Technology CEO Council and Information Technology Industry Council (ITI) will likely testify, given their sustained focus on semiconductors, AI security, and digital trade.
Congressional witnesses are expected to include:
- Rep. Darin LaHood (R-IL-16), co-chair of the Digital Trade Caucus, who introduced the Advanced AI Security Readiness Act
- Rep. Blake Moore (R-UT-1), who reintroduced the Semiconductor Technology Advancement and Research (STAR) Act
- Rep. Carol Miller (R-WV-1), who introduced the U.S. Trade Leadership in the Indo-Pacific Act
- Rep. Terri Sewell (D-AL-7), focused on federal innovation funding
- Ranking Member Linda Sánchez (D-CA-38), who has engaged in debates over U.S.-China trade negotiations
Between The Lines
Ranking Member Rep. Linda Sánchez (D-CA-38) sparred with Treasury Secretary Bessent over tariffs and U.S.-China trade negotiations, showcasing her focus on policy impacts.
Rep. Darin LaHood (R-IL-16) has emerged as a technology policy leader, championing U.S. digital trade leadership and introducing AI security legislation targeting China.
Rep. Blake Moore (R-UT-1) has championed the semiconductor industry, calling semiconductors "the linchpin to the technologies of the future" while pushing for a 25% investment tax credit for semiconductor design R&D.
Rep. Terri Sewell (D-AL-7) celebrated a $44 million grant for the Birmingham Technology Hub, then condemned the Trump Administration for canceling the investment.
Competitive Landscape
Major technology firms have mounted substantial lobbying campaigns. Tech policy lobbying firms earned nearly $92 million in the first three quarters of 2025 alone on AI-related issues, with major AI firms launching super PACs to shape federal preemption strategies.
Google’s lobbying efforts centered on intellectual property implications of generative AI, international trade agreements preventing data localization, and semiconductor supply chain security.
Industry coalitions have targeted specific legislation, with semiconductor manufacturers pushing for extensions of CHIPS Act tax credits beyond 2026.
The Bottom Line
Congress faces a complex challenge: balancing national security concerns about technology transfer with sustaining domestic innovation investment and preserving market access for American companies. Recent administration moves—approving some chipmaking tool exports to China despite stricter rhetoric—illustrate these tensions.
The hearing will likely surface disagreements over how aggressively to pursue tariffs and export controls, and whether direct federal investment or tax incentives should drive innovation policy.
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