President Donald Trump falsely claimed that companies receiving federal semiconductor funding were required to employ transgender executives, prompting a public rebuke from Democratic Representative Doris Matsui of California, a co-author of the CHIPS legislation.
Trump made the statement on July 15, 2026, during the Pennsylvania Defense and Innovation Summit at the U.S. Army War College in Carlisle. The allegation matters because it mischaracterized a major bipartisan industrial policy while using transgender people as the basis for criticism unsupported by the law’s text.
What Trump Said at the Pennsylvania Summit
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While criticizing the CHIPS and Science Act, Trump said its standards were so restrictive that applicants allegedly could not qualify unless they were transgender. He continued by claiming that companies searched for transgender people to run their operations.
According to the published speech transcript, Trump said that “if you weren’t transgender, as an example, you didn’t qualify.” He offered no evidence, identified no company affected by such a condition and cited no provision of the law or federal funding guidance.
Rep. Doris Matsui Rejects the Allegation
Matsui responded publicly on X that “Donald Trump is lying.” She accused the president of spreading disinformation about an investment intended to support manufacturing, economic growth and national security.
Matsui and Republican Representative Michael McCaul of Texas were congressional co-authors of the original CHIPS for America legislation. Their proposal became part of the broader CHIPS and Science Act signed by President Joe Biden on August 9, 2022, according to Matsui’s congressional office.
The National Institute of Standards and Technology says the act provided $52.7 billion to strengthen the domestic semiconductor industry. The Commerce Department’s CHIPS Program Office received responsibility for $39 billion in manufacturing incentives.
Latest Verified Update
As of July 21, 2026, the White House had not published a correction, supporting evidence or a detailed explanation for Trump’s statement. The Guardian reported that the White House had not responded to its request to explain the allegation.
Federal CHIPS programs remain active. The current funding information published by NIST says concept plans for facilities producing semiconductor materials and manufacturing equipment may be submitted through November 1, 2026.
The listed federal objectives include strengthening supply-chain security, expanding domestic production, creating jobs and developing a skilled technical workforce. None of the published objectives requires grant recipients to appoint transgender executives.
What the CHIPS Act Actually Requires
The law includes a section titled “Opportunity and Inclusion.” It directs the Commerce Department to support participation by economically disadvantaged people, minority-owned businesses, veteran-owned businesses and women-owned businesses in areas receiving semiconductor investment.
That provision does not establish an identity requirement for company executives. Separate parts of the legislation fund research into sex-based and sexual harassment in science, technology, engineering and mathematics workplaces. Those measures concern workplace safety, research practices and institutional policies rather than the gender identity of corporate managers.
The statute also imposes financial controls. Recipients cannot use federal CHIPS funding for stock buybacks or dividend payments. Eligibility is principally based on semiconductor facilities, project feasibility, national security considerations, supply-chain needs and an applicant’s ability to complete the proposed investment.
What Happens Next
Trump’s comment was made during a speech and was not accompanied by a new regulation, executive order or formal change to the CHIPS funding program. No government investigation or congressional proceeding connected specifically to the statement had been announced as of July 21.
The central factual question is addressed by the public record: neither the CHIPS and Science Act nor the federal funding guidance requires semiconductor companies to employ transgender executives. Further developments could include a White House clarification, additional congressional responses or renewed debate over the administration’s approach to semiconductor subsidies.
