A bizarre claim by President Donald Trump about the bipartisan CHIPS and Science Act has drawn swift condemnation from lawmakers and LGBTQ+ advocates after he falsely suggested companies receiving federal funding were required to hire transgender executives to qualify for government support.
Speaking at the Pennsylvania Defense and Innovation Summit last week, Trump criticized the 2022 CHIPS and Science Act, which provides billions of dollars to expand semiconductor manufacturing in the United States. During his remarks, he claimed companies receiving funding faced diversity requirements so extreme that “if you weren’t transgender, as an example, you didn’t qualify.”
He continued by suggesting companies searched unsuccessfully for transgender people to run major portions of their businesses because they “weren’t into the chip-making business.” No evidence was offered to support the statement, and no such requirement exists within the law.
California Representative Doris Matsui, one of the architects of the CHIPS Act, quickly responded on social media, calling Trump’s remarks a deliberate falsehood.
“As one of the architects of the CHIPS Act, let me be clear: Donald Trump is lying,” Matsui wrote. She accused the president of “spewing disinformation to incite hatred and divide Americans” while misrepresenting legislation designed to strengthen American manufacturing, economic growth, and national security.
The CHIPS and Science Act was signed into law in 2022 with bipartisan support to encourage domestic semiconductor production and reduce reliance on overseas manufacturing. The legislation provides more than $50 billion in incentives for chip manufacturing, research, and workforce development.
Fact-checkers and policy experts reviewing the law found no language requiring companies to hire transgender executives or employees as a condition of receiving funding. Instead, the legislation includes standard workforce development initiatives and anti-harassment research programs common in federal science funding.
Some observers have speculated Trump may have confused references within the law to workforce transition programs or government offices containing the word “transition” with transgender-related policies. However, neither the White House nor the president has offered an explanation for the claim.
For LGBTQ+ advocates, the episode reflects a broader political strategy that inserts transgender people into unrelated policy debates. Rather than discussing semiconductor manufacturing or industrial policy on its merits, the comments transformed a conversation about economic investment into another flashpoint in the nation’s ongoing culture wars.
The controversy also highlights how misinformation about transgender people can spread even when they have no connection to the issue at hand. Critics argue that repeatedly invoking transgender people in unrelated political attacks reinforces harmful stereotypes and distracts from substantive policy discussions.
As debate over the future of the CHIPS Act continues, lawmakers from both parties will likely continue arguing over the program’s economic impact. What remains undisputed, however, is that the law contains no provision requiring companies to hire transgender executives or employees to receive federal funding.
