Thursday, July 14, 2022

TSA chief says pay equity his top priority as TSO bill awaits Senate action - The Federal Report

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Federal News Network - The Federal Report - July 14, 2022

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** Pay

TSA chief says pay equity his top priority as TSO bill awaits Senate action

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New TSP fees: Who pays what, when, how much?

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Best Places to Work results are down overall, but some agencies still shine through

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Agency leaders trying to get along better with federal employee unions

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** Management

USPS, postal union defends check-cashing pilot despite lack of customers

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** Insight by Zscaler

Agencies understand the importance of the disparate zero trust controls and requirements separately, but they struggle with figuring out how to move forward with all of them. Here's how they can do that.

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** Congress

Connolly NDAA amendment would put a Schedule F revival to rest

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** Veterans Affairs

Major VA workforce, health care bill heads to House floor vote once more

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** Contracting

Bezos' legal team protests federal contracts like no other

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** Congress

2023 appropriations bills include more oversight, transparency, staffer supports

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After Boeing 737 Max crashes, GAO looked at European standards for plane certifications

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Marines on duty at the White House

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Sailors Filing Sexual Assault Reports to Get More Options Under New Changes

Military.com
Daily Brief
14 July 2022
Sailors Filing Sexual Assault Reports to Get More Options Under New Changes
The new rules are the latest of a series of changes that appear aimed at making it easier for victims to come forward.
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The Morning: The semiconductor problem

The military relies on the most advanced chips. The U.S. doesn't make any.

Good morning. The military relies on advanced semiconductors. The U.S. doesn't make any.

Chips on display in Taiwan.Ann Wang/Reuters

'A very dangerous situation'

The most advanced category of mass-produced semiconductors — used in smartphones, military technology and much more — is known as 5 nm. A single company in Taiwan, known as TSMC, makes about 90 percent of them. U.S. factories make none.

The U.S.'s struggles to keep pace in semiconductor manufacturing have already had economic downsides: Many jobs in the industry pay more than $100,000 a year, and the U.S. has lost out on them. Longer term, the situation also has the potential to cause a national security crisis: If China were to invade Taiwan and cut off exports of semiconductors, the American military would be at risk of being overmatched by its main rival for global supremacy.

For these reasons, a bipartisan group of senators and the Biden administration negotiated a bill last summer that included $52 billion to jump-start the domestic semiconductor industry, as well as other measures to help the U.S. compete economically with China. The bill would offer the kind of semiconductors subsidies that other countries — including China, South Korea, Japan, India and Germany — provide. Without such subsidies, companies like Intel and Broadcom would probably choose to build new factories outside the U.S.

But the Senate's semiconductor bill still has not become law. The House spent months negotiating its own bill, passing one in February. Since then, the House and Senate have failed to resolve the differences between the two bills, and Mitch McConnell, the Republican Senate leader, recently threatened to scuttle the talks.

The standoff has become another example of dysfunctional congressional politics weakening the U.S.'s global standing.

There is a broad consensus — among many experts, President Biden, an overwhelming majority of Democrats in Congress and a meaningful number of Republicans — that the federal government should act. But it still has not.

Today's newsletter looks at the debate over the bills and the recent efforts to find a solution before Congress leaves for its August recess.

The Biden administration wants Congress to pass a semiconductor bill.Doug Mills/The New York Times

Corporate welfare?

The strongest substantive argument against the subsidies is that they are a handout to the semiconductor industry. The bills would use taxpayer dollars to benefit large companies that already can make a profit on the products they sell.

In economic terms, this argument makes a lot of sense. But geopolitics matter, too. Political leaders in other countries have already decided to offer subsidies for semiconductor manufacturing, because they want some of this manufacturing to take place in their countries.

If the U.S. does not also offer subsidies, it may continue to struggle to attract factories. Already, the U.S. market share of all semiconductor manufacturing has fallen to about 12 percent from 37 percent three decades ago.

Pat Gelsinger, the chief executive of Intel, has said that a typical factory costs about $10 billion to build, and subsidies from some countries cover 30 percent to 50 percent of that cost. China's subsidies cover closer to 70 percent. "It is not economically viable for us to compete in the world market if everyone else that we're competing with is seeing 30 to 50 percent lower cost structures," Gelsinger said.

Senator Rob Portman, an Ohio Republican who helped write the Senate bill, has acknowledged that it runs counter to the free-market philosophy he usually prefers. But, Portman explained at the Aspen Ideas Festival last month, "if we are continuing with blinders on to follow a political philosophy that seems to make sense generally but doesn't work in the practical world, I think we end up with a much less competitive economy and a national security risk."

Biden and his top aides agree. "We are now in a very dangerous situation in which we are utterly reliant on Taiwan for the vast, vast majority of our most advanced semiconductors, which are the exact kind of semiconductors you need for military equipment," Commerce Secretary Gina Raimondo told me. "You cannot be a global superpower if you don't make any of these."

What China wants

Why, then, haven't the Senate and House agreed on the bill?

House Democrats added provisions to the Senate bill that Republicans did not like, such as additional money for worker retraining. House Democratic leaders seem willing to remove most of these from the final bill, but it remains unclear whether the two parties can agree on a compromise.

McConnell — despite being one of 19 Senate Republicans who voted for the original bill — also appears to be wavering. He sent a tweet on June 30 suggesting that he might block a semiconductor bill if Democrats continued trying to pass a separate bill, on climate change and drug prices, that Republicans oppose.

McConnell may have been posturing, hoping to intimidate House Democrats into dropping the provisions in its version of the semiconductor bill. On the other hand, his history suggests that he might be willing to defeat a policy he would otherwise favor for the sake of making a Democratic president look weak.

To help the bill's chances, Chuck Schumer, the Senate Democratic leader, held a classified briefing for all senators yesterday. At it, Raimondo and Avril Haines, Biden's director of national intelligence, discussed the U.S. military's current dependence on Taiwan. Major corporations are also lobbying for the bill, as my colleague Catie Edmondson notes. "So many powerful industries badly want this bill to pass, from the chip makers to defense contractors to manufacturers," she said.

There is still one vocal opponent of the bill: the Chinese government. Its state media has criticized the idea as "bullying" and part of a "Cold War mentality." In recent decades, no country's share of semiconductor manufacturing has increased as rapidly as China's.

THE LATEST NEWS

Politics
Inflation
Not seasonally adjusted. | Source: Bureau of Labor Statistics
International
President Biden and Prime Minister Yair Lapid of Israel in Jerusalem.Doug Mills/The New York Times
Other Big Stories
Opinions

College sports are losing their regional charm, Matthew Walther writes.

Another President Marcos could break the Philippines, Sheila Coronel argues.

Some say it's "wrong." Others reacted with "complicated": Voters on both sides of the abortion debate reflect on the end of Roe v. Wade.

MORNING READS

Grizzly Giant: How to save an ancient tree from a wildfire.

Our universe: Five things we learned from the Webb telescope's first images.

Puppet history: The saga of a World War II ancestor of Miss Piggy and Bert.

A Times classic: Make pizza at home.

Advice from Wirecutter: Cornhole tips.

Lives Lived: Spider Webb helped bring serious art credentials to tattooing, promoting it as a form of artistic expression. He died at 78.

SPORTS NEWS FROM THE ATHLETIC

A New York Knicks blockbuster? News came in last night: Trade talks surrounding Donovan Mitchell are afoot.

An M.L.B. roster decimated by vaccination requirements: The Kansas City Royals are without 40 percent of their roster as they head on a trip to Toronto while dealing with Canada's Covid vaccination requirements. Those requirements have altered the M.L.B. landscape.

A free-agency signing stuns a league: The N.H.L. saw top free agent Johnny Gaudreau forego millions of dollars to sign with the Columbus Blue Jackets yesterday, shocking the entire league. Here are the winners and losers of N.H.L. free agency.

The Yankees lose a key arm, for now: Luis Severino exited his start last night with shoulder soreness. Ken Rosenthal writes that the Yankees need to make moves.

ARTS AND IDEAS

Leila, in Detroit, closed for lunch at the start of the pandemic.Emily Elconin for The New York Times

The end of the power lunch?

The pandemic disrupted the expense-account lunch business, and upscale restaurant owners aren't sure how, or whether, to reopen.

Power lunchers are closing deals and making "connections in front of a computer screen at home while eating salads from takeout boxes," Brett Anderson writes in The Times. The slow return of office workers has made it difficult for sit-down restaurants to justify hiring employees for lunch service.

"It's nothing like it was before Covid," said Ashok Bajaj, owner of the Bombay Club, a restaurant near the White House. "The energy has been sucked out of downtown." Instead, sales at quick-service joints have exceeded those at table-service restaurants since the start of the pandemic. Bajaj himself opened a fast-casual Indian street food spot.

PLAY, WATCH, EAT

What to Cook
Melina Hammer for The New York Times

Smoke a chicken vertically, atop a half-full beer can.

Theater

"Notre Dame de Paris," a splashy French musical, has arrived in New York.

What to Read

Books about Joseph Smith, salmon farms and more are among newly published titles.

Now Time to Play

The pangram from yesterday's Spelling Bee was impediment. Here is today's puzzle.

Here's today's Mini Crossword, and a clue: Not cool (five letters).

And here's today's Wordle. After, use our bot to get better.

Thanks for spending part of your morning with The Times. See you tomorrow. — David

P.S. A hidden haiku from a recent Interpreter column: "Scanning the headlines, / it's easy to conclude that / something has broken."

"The Daily" is about Sri Lanka. "Popcast" is about Baz Luhrmann's biopic about Elvis.

Claire Moses, Ian Prasad Philbrick and Ashley Wu contributed to The Morning. You can reach the team at themorning@nytimes.com.

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The Hidden Engine of the Economy - And Why Elon Musk Is Powering It

GDP only tells half the story. Dr. Mark Skousen developed the measure that captures the other half — and right now it's pointing to...