Raimondo urged to intensify CHIPS funding enforcement by Democrats.

• Gina Raimondo, Commerce Secretary, is being requested by a group of Democrats to verify that companies receiving CHIPS grants are not utilizing them to boost their profits.
• BAE System is buying back its own shares around the time of receiving the award.
• Previously, Sen. Elizabeth Warren had expressed worries about companies receiving CHIPS funding and subsequently engaging in stock buybacks.

Democrats are raising concerns about companies using federal funding for semiconductors to support stock buybacks and criticizing their own party for how the awards are given.

In a letter to Commerce Secretary Gina Raimondo, four lawmakers raised concerns about a company commencing a round of buybacks at the same time they will receive a $35 million award from the CHIPS Act.

The letter, led by Sen. Elizabeth Warren of Massachusetts and signed by Reps. Sean Casten and Bill Foster of Illinois and Pramila Jayapal of Washington, pointed out that the company that has received the largest award to date —$8.5 billion — has approved its board of directors to repurchase $7.24 billion in stocks.

Last year, Pat Gelsinger, Intel's CEO, informed Yahoo! Finance that the company remains dedicated to paying dividends.

Raimondo clarified that CHIPS funding is not intended to boost companies' profits or finance stock purchases.

Lawmakers urged her to prohibit stock buybacks for companies that receive CHIPS funds.

In the letter, lawmakers criticized the department for allowing large semiconductor companies to receive millions or even billions in CHIPS grants, reallocate funds, and engage in stock buybacks.

Lawmakers wrote a letter stating that it is difficult to reconcile the buyback history and stated intentions of CHIPS awardees with Commerce's indication that it will favor manufacturers that make real commitments not to engage in buybacks.

The CHIPS Act has allocated $33 billion in funding, primarily to major companies, but the awards are still preliminary and companies are undergoing a due diligence review, according to a statement from the department.

Warren has previously expressed concerns about companies that receive accolades engaging in buybacks.

Earlier this year, she wrote to BAE Systems and received a response stating that all grant money would be allocated to the Microelectronics Center, and buyback decisions were separate from any funds released through the CHIPS Act.