Will the CHIPS Act Help With Supply Chain Issues?

by | Aug 31, 2022 | Blog, Industry Insights

Will the CHIPS Act Help With Supply Chain Issues?

With the passing of the CHIPS Act earlier this year, companies in the supply chain industry have been scrambling to understand how it affects them and their business strategies. While many analysts agree that the new legislation will ultimately benefit consumers, shipping times will get worse before they get better. In addition, costs will increase as shippers pass along additional fees to their customers.

So, what else do you need to know about the CHIPS Act and how it will affect your business? Read on to find out!

Background Information

The law’s full name is the Coast Guard Authorization Act of 2018, which was signed into law on October 11, 2018. This act helps fund the Coast Guard for their efforts in national security. In addition, the chip supply chain specifically addresses improvements that need to be made to help protect against environmental damage, human trafficking, and drug smuggling.

The law’s original intent was to improve maritime safety and security after the 9/11 terrorist attacks. However, the 9/11 Commission found weaknesses in maritime security, and this act seeks to address those vulnerabilities.

This bill has bipartisan support and was sponsored by Senators John McCain (R-AZ) and Dianne Feinstein (D-CA).

What Did the Old Bill Do?

The old bill, The Coordinated Hazardous Incident Preparedness and Response Act, was created to improve hazardous materials response during emergencies. The bill established a National Response Team to coordinate the response to hazmat incidents. The team would be made up of representatives from various federal agencies as well as state and local governments.

The bill also created a Hazardous Materials Information and Training Center, which would provide training and information on hazmat response.

The New Bill

On March 14, 2018, President Trump signed the Combatting Human Trafficking in Commercial Vehicles Act (the CHIPS Act) into law. The new law creates stringent requirements for commercial truck and bus drivers to combat human trafficking.

The CHIPS Act requires all commercial truck and bus drivers to have a valid driver’s license and medical certificate. In addition, commercial truck and bus drivers must undergo a background check before driving a commercial vehicle.

What You Need to Know about the New Bill

On October 11 and 12, President Trump signed the CHRISTIE’S Infrastructure for Spending on Infrastructure for Secure and Timely Handling of Equipment and Supplies, or CHIPS Act. This bipartisan bill allocates $300 million to improve cybersecurity in our nation’s infrastructure and $1.5 billion to update our nation’s facilities that handle shipments of chips and other technology products.

The Chip’s act supply chain bill is a significant first step in protecting our nation’s critical infrastructure and keeping our economy moving forward.

Supply Chain Predictions

It’s been a tough few months for the supply chain. The pandemic has wrenched the system, causing delays and disruptions. But there’s hope on the horizon. The new CHIPS Act will help address some issues plaguing the supply chain. For example, allowing transportation companies to more easily transport goods and services through border checkpoints with expedited inspections will help alleviate many of the difficulties caused by lengthy customs procedures. Provisions like these give people and businesses more confidence that they can move their products through the U.S., reducing uncertainty and boosting productivity levels.

The new legislation also includes provisions to authorize government departments (such as DHS) to develop plans for emergency imports when needed—giving relief from shortages of critical items such as food or medical supplies—and sets up a mechanism for assessing infrastructure needs related to emergency imports at seaports, airports, and land borders.

Final Thoughts

As a business, one of your main goals is to keep your supply chain running smoothly. But sometimes, disruptions can happen – which is where the new CHIPS Act comes in. This Act helps mitigate some of the risks associated with supply chain disruptions, which all businesses should be aware of.

Contact us or visit eliteextra.com for more information on how we can ensure you have access to critical goods and services when needed.




Mallorie Barabas

Mallorie Barabas


Mallorie is the Marketing Strategist at Elite EXTRA; if you ask her about her job, she will immediately tell you to follow @EliteEXTRA on LinkedIn (that is your cue;) When she isn't at the office, you can catch her teaching aerial yoga, swimming, or just generally enjoying the outdoors.

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