Department of Energy national laboratories are joining forces to establish a new organization that works toward building a strong domestic semiconductor supply chain. The DOE said Tuesday that the Semiconductor Manufacturing and Advanced Research with Twins, or SMART, USA Institute will utilize advanced technologies to improve the nation’s competitiveness in microelectronics production. 

The Idaho National Laboratory will lead the new institute as chief digital officer. 

What Is the SMART USA Institute?

The SMART USA Institute will primarily employ digital twins, or virtual representations, to improve the design, packaging, manufacturing and testing of semiconductors. According to DOE, the effort will also tap into the artificial intelligence and computational research capabilities of its network of national laboratories.

“The Department of Energy and our National Labs have been at the forefront of artificial intelligence research and we’re expanding that reach to advance domestic manufacturing capacity and national security,” commented Secretary of Energy Jennifer Granholm, a Wash100 awardee.  

The DOE has long been involved in efforts to advance semiconductor research. The Exascale Computing Project under DOE’s Office of Science and National Nuclear Security Administration played a role in the development of GPU components that are now in use to power advanced simulations and AI.

A Nationwide Effort 

SMART USA is an addition to Manufacturing USA, a wider network of institutes that aim to bolster domestic manufacturing competitiveness. Each Manufacturing USA institute is a public-private partnership working together toward a common goal. 

In November, the Department of Commerce awarded $285 million to the Semiconductor Research Corporation to build and operate a chip manufacturing facility in Durham, North Carolina. The manufacturing facility is part of the SMART USA initiative, which received a $1 billion total funding.

As the December 20 expiration date for the current continuing resolution looms, lawmakers in Washington are racing against the clock to avoid a government shutdown. The CR, enacted earlier this year, has kept federal agencies funded at previous fiscal year levels, but its expiration on Friday has prompted renewed negotiations to secure funding and address pressing policy needs.

Background: What Is a Continuing Resolution?

A continuing resolution is a temporary funding measure that Congress passes to maintain government operations while legislators work on full-year appropriations bills. These stopgap measures are often used to avoid shutdowns when disagreements or delays stall the regular budget process. The current CR has allowed federal programs to function uninterrupted, but only until December 20.

Key Developments in Budget Negotiations

In recent days, congressional negotiators have made significant strides toward a new stopgap funding agreement. The proposed bill would extend government funding through March 14, 2025, providing additional time to finalize appropriations for the fiscal year.

Disaster Aid and Farmer Assistance at the Forefront

One of the bill’s key provisions is $100 billion in disaster aid. This funding is aimed at supporting recovery efforts for communities affected by hurricanes, wildfires and other natural disasters. Additionally, $10 billion is allocated for economic assistance to farmers, whose programs face expiration at the end of the year.

Bipartisan Negotiations Hit Snags

While the framework for the stopgap bill has bipartisan backing, disputes over specific provisions, including the details of agriculture aid, remain unresolved. House Appropriations Chair Tom Cole and Senate leaders expressed cautious optimism but acknowledged the complexities of the negotiations. These unresolved issues could delay the final passage of the bill, raising concerns about a potential lapse in funding.

What Happens If the CR Expires Without a Deal?

If Congress fails to pass a new funding measure by December 20, the government could face a partial shutdown. This would disrupt federal operations, furlough employees and halt many public services. Essential services, such as national security and emergency response, would continue to function, but the broader impacts could affect millions of Americans.

The House of Representatives, led by Speaker Mike Johnson, plans to give lawmakers 72 hours to review the proposed bill. This timeline pushes the potential House vote to Thursday, December 19. If delays occur, even a brief shutdown remains a possibility as the Senate would need to expedite its own approval process.

Implications for Government and Policy

The proposed funding package reflects both immediate and long-term priorities:

• Disaster Recovery: Communities devastated by recent hurricanes and wildfires stand to benefit from increased disaster relief funding.
• Agriculture Stability: Farmers face significant financial uncertainty as programs approach expiration. The proposed $10 billion aid package seeks to provide economic stability.
• Operational Continuity: Extending the CR through March 14 would give lawmakers additional time to negotiate comprehensive appropriations bills for fiscal year 2025.

Looking Ahead: High Stakes for Friday’s Deadline

As the deadline approaches, all eyes are on Congress to deliver a stopgap funding solution. The stakes are high, with potential economic and operational consequences if a shutdown occurs. Lawmakers on both sides of the aisle have expressed a desire to avoid such a scenario, but the resolution of outstanding disputes remains critical to meeting Friday’s deadline.

In the coming days, the success of these negotiations will hinge on the ability of Congress to find common ground and balance urgent funding needs with broader legislative priorities. The next 72 hours will determine whether the government avoids disruption or faces yet another funding crisis.

Curious about the state of government innovation and funding? Join the 2025 Defense R&D Summit, hosted by the Potomac Officers Club on Jan. 23, to hear directly from government and military leaders about their top innovation priorities, budget concerns and technological advancements.