Commerce Secretary Howard Lutnick just pulled the plug on a shady $7.4 billion deal, as the New York Post reports. The Biden administration’s last-minute handout to a nonprofit stuffed with its cronies got the boot, and taxpayers should be cheering. This move exposes the left’s obsession with funneling public funds to unaccountable allies.
The 2022 CHIPS and Science Act set aside $11 billion for semiconductor research, meant to be managed by the Commerce Department’s National Semiconductor Technology Center. Instead, Biden’s team created Natcast, a Sunnyvale, California, nonprofit, to handle the cash. It’s a classic progressive dodge -- outsource accountability to a friendly middleman.
Natcast was established after nearly two years of setup by Biden officials, who packed it with former political appointees and allies. This wasn’t a neutral operation; it was a cozy club for the outgoing administration’s favorites. The fix was in before the ink dried.
On Jan. 16 of this year, just days before Biden’s exit, the Commerce Department inked a deal to send Natcast $7.4 billion in advance payments. This agreement, set to run until 2034, was a blatant attempt to tie up funds beyond the administration’s term. It’s the kind of move that screams “we’re above oversight.”
Natcast’s leadership reads like a Biden reunion tour. CEO Deirdre Hanford sat on the Commerce Department’s Industrial Advisory Committee, while Donna Dubinsky, a Natcast executive, was a senior counselor to former Commerce Secretary Gina Raimondo. These aren’t impartial stewards; they’re loyalists cashing in.
The selection committee was no better, featuring Biden White House alums like Jason Matheny and Kendra Wilkerson. Matheny was a deputy director in the White House Office of Science and Technology Policy, and Wilkerson runs a nonprofit pushing progressive causes. This is cronyism dressed up as public service.
“Rather than establishing these operations within the Department, Biden Administration officials spent significant time… creating an unaccountable, outside entity,” Lutnick wrote to Natcast’s CEO. He’s right -- why build a nonprofit to do the government’s job unless you’re hiding something? The answer is control without responsibility.
Lutnick didn’t mince words, accusing the deal of flouting federal law. “These actions do not just give the appearance of impropriety; they flout federal law,” he said. It’s refreshing to see a public servant call a spade a spade and dismantle this progressive pet project.
The Government Corporation Control Act bans agencies from creating corporations to act as proxies without clear authorization. Lutnick pointed out that the Jan. 16 agreement was a direct violation. Biden’s team thought they could sneak this past the goalie, but Lutnick wasn’t playing.
“Ending this illegal relationship will ensure efficient use of taxpayer funds,” Lutnick declared. He’s not just saving $7.4 billion; he’s yanking the reins back to the Commerce Department, where Congress intended them to be. This is what draining the swamp looks like.
The Department reserves the right to pursue legal remedies against Natcast, Lutnick warned. That’s a polite way of saying, “Don’t test us.” It’s a signal that the new administration won’t let Biden’s leftovers dodge accountability.
Environmental Protection Agency Administrator Lee Zeldin also exposed similar schemes, uncovering $20 billion at Citibank slated for distribution through questionable pass-through entities. “EPA is losing oversight by design intentionally,” Zeldin said on a podcast. It’s a pattern -- progressives love funneling money through murky channels.
Natcast’s roster is a who’s-who of Biden insiders. Susan Feindt, once vice chair of the Commerce Department’s CHIPS Act advisory committee, now serves as Natcast’s senior vice president. Jeremy Licht, former chief counsel on semiconductor incentives, is its general counsel -- coincidence or calculation?
The Biden administration’s push to lock in Natcast’s funding before Inauguration Day reeks of desperation. They knew their time was up and scrambled to secure their allies’ positions. It’s not governance; it’s a parting gift to the faithful.
Lutnick’s cancellation of the $7.4 billion deal is a win for taxpayers and a blow to the left’s unaccountable schemes. By bringing oversight back to the Commerce Department, he’s ensuring the CHIPS Act serves America, not just Biden’s buddies. This is how you restore trust in government -- one canceled check at a time.
