On August 26, the U.S. Commerce Department has taken control of a $7.4 billion semiconductor research fund from the National Center for the Advancement of Semiconductor Technology (NATCAST), a private non-profit created under the Biden administration. Officials described the fund as an "illegal slush fund" for former Biden appointees and pledged greater oversight of how the money is spent, though no details were provided.

The fund was part of the Biden-era CHIPS and Science Act, which authorized nearly $300 billion in loans and investments to boost domestic semiconductor design, development, and manufacturing. NATCAST was allocated $11 billion to establish a network of research centers focused on chip design.

Commerce Secretary Howard Lutnick said in a statement that "from the very beginning, NATCAST served as a semiconductor slush fund that did nothing but line the pockets of Biden loyalists with American tax dollars." He signaled that the Trump administration intends to overhaul how federal technology investments and grants are managed.

The Commerce Department also alleged that NATCAST attempted to circumvent legal restrictions barring government agencies from directly creating corporations, and accused it of being staffed with former Biden officials, raising concerns of nepotism and corruption.

NATCAST has not publicly responded to the seizure but recently emphasized its alignment with White House priorities and its role in strengthening U.S. competitiveness in advanced chips. In July, it opened a CHIPS for America Extreme Ultraviolet (EUV) Accelerator facility at the Albany NanoTech Complex in New York, providing access to ASML's latest EUV chip design tools. Earlier this year, NATCAST and the Biden administration also announced plans for a new R&D facility in Tempe, Arizona, originally slated to open in 2028—a timeline now uncertain.

The Commerce Department has not yet disclosed how it intends to redirect the seized funds.