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AI boom tests GOP’s midterm affordability pitch as price pain spreads
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Republicans are warning that their ability to deliver on lowering everyday costs, one of their core campaign promises heading into the 2026 midterms, is being tested by an AI-driven chip shortage that has spilled into consumer markets.
«When you have a big race like we have with AI, there are secondary effects that we need to be very concerned about,» former Rep. Patrick McHenry, who served as House Financial Services Committee chairman, told Fox News Digital, adding, «It is hurting Republicans.»
Tech industry reports have for months been raising alarm over a global chip shortage. In January, a report predicted that this year, 70% of the high-end memory chips produced would go toward data centers, which store AI memory, constraining all other downstream technology and driving up prices, directly undermining Republicans’ affordability agenda.
AFFORDABILITY: THE ISSUE THAT BOOSTED TRUMP AND REPUBLICANS IN 2024 DEFLATED THEM IN 2025
President Donald Trump delivers remarks at the «Winning the AI Race» AI Summit at the Andrew W. Mellon Auditorium in Washington, D.C., on July 23, 2025. (Andrew Caballero-Reynolds/AFP)
«We see this from our handheld devices to our computers, to TVs,» McHenry, a North Carolina Republican congressman turned policy advisor, said in an interview. «Even autos are impacted, and even things such as what we think of as average everyday things that aren’t particularly high-tech, like the things we use to manicure our lawns are impacted by rising prices of chips, so there’s a lot of secondary effects across consumer goods and should be a huge concern.»
Heading into 2026, President Donald Trump framed the midterms as a referendum on cost of living, saying in a Politico interview the elections «will be about pricing.»
Historically, the party in control loses seats during the midterms. One Republican strategist told Fox News Digital that AI’s well-documented dominance over the chip market should be viewed as hurting voters’ pocketbooks. The strategist called on the three largest chip manufacturing companies to expand production, which he said would help bolster the GOP’s campaign message.
«America must win the artificial intelligence race. Companies like Samsung, SK Hynix and Micron understand that,» the strategist said. «At the same time, we can’t forget about consumer goods. Memory chip manufacturers need to increase production to boost both American AI and lower the cost of consumer goods. If they don’t, it will undoubtedly hurt Republicans politically in the midterms. How can Republicans campaign on ‘lower costs’ in 2024, but see computer and car prices rise in 2026 due to a lack of chip production?»
TRUMP TORCHES DEMS’ ‘FAKE AFFORDABILITY’ PITCH – BUT GOP PANIC IN DEEP RED STATE HINTS VOTERS AREN’T BUYING IT
The OpenAI logo appears on a mobile phone in front of a computer screen displaying ChatGPT output in Boston on March 21, 2023. (Michael Dwyer/AP)
The AI boom is increasing demand for memory chips, which are semiconductor components used in data centers, laptops and smartphones.
That chip consumption has rippled across industries. Microsoft this month attributed its rise in laptop prices to «recent increases in memory and component costs.» The smartphone market remained «under pressure,» with shipments down 6% this year, largely because of chip shortages, Counterpoint Research found.
Sen. Bernie Moreno, R-Ohio, previously a car dealership owner, warned in a letter this month his state was seeing «immediate and severe» consequences of rising chip prices and that automakers have said they could begin halting assembly lines as early as next month.
While affordability has been a resounding priority for Republicans seeking to retain control in Washington, AI advancements are also a pillar of Trump’s agenda. The White House declared last year in a sweeping plan that the country was in «a race to achieve global dominance in artificial intelligence» and cited the need for a «revitalized U.S. chip industry.»
Asked about the AI-driven affordability concerns, White House spokesman Kush Desai told Fox News Digital in a statement that the White House was cognizant of the clash and balancing it with a «nuanced» economic plan, which includes Trump’s signature worldwide tariffs, which the president restructured after the Supreme Court struck down his initial plan implementing them in the name of what he said was a global economic emergency.
«The fact that semiconductor chips are absolutely critical for everything from cutting-edge AI technology to everyday consumer goods only reinforces the importance of President Trump’s push to reinvigorate America’s semiconductor industry,» Desai said. «Hundreds of billions in semiconductor manufacturing investments reflect how the private sector is enthusiastically responding to the Administration’s nuanced and multi-faceted agenda of tariffs, deregulation and tax cuts.»
KEVIN O’LEARY WARNS CHINA ‘KICKING OUR HEINIES’ IN AI RACE AS REGULATORY ROADBLOCKS STALL US
President Joe Biden speaks during a signing ceremony for the CHIPS and Science Act of 2022 on the South Lawn of the White House in Washington, D.C., on Aug. 9, 2022. (Saul Loeb/AFP)
The strain on supply is also raising new questions about the effectiveness of the bipartisan CHIPS Act, a Biden administration bill designed to boost domestic production and prevent precisely the kind of shortage markets are now seeing.
McHenry, who specializes in fintech policy, said the CHIPS Act, a multibillion-dollar effort to pour federal subsidies and tax incentives into U.S. chip manufacturing, has been a «grave disappointment.» McHenry said both that the White House had «a lot more work» to do to address the supply shortage and that congressional reforms were another way to improve domestic chip production.
«Unfortunately for the taxpayer, they paid for the CHIPS Act the first time, and now they’re paying for it a second time with the rising price of consumer goods,» McHenry said. «Republicans need to address this on Capitol Hill. They need to clean up the CHIPS Act, so the president can deploy these tools to incentivize and grow chip manufacturing here in the United States.»
Rep. Darrell Issa, R-Calif., who founded a successful car security company, said he sees a need for chip production expansion, tying it to consumer costs, in a statement to Fox News Digital.
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«America leads the world in AI — and we stay there by unleashing the nation’s industrial base, ramping up chip production and memory as never before and lowering the consumer costs people pay every day,» he said.
The congressman said more chips were «essential» to delivering on the GOP’s promises of «opportunity, prosperity and affordability.»
Fox News Digital reached out to representatives of Samsung, SK Hynix and Micron for comment.
artificial intelligence, midterm elections, consumers, samsung, republicans
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Mike Johnson faces revolt from GOP privacy hawks threatening to kill FISA renewal as deadline looms
Congress passes short-term FISA 702 extension
Fox News chief congressional correspondent Chad Pergram reports on the 13-day FISA extension. Rep. Ben Cline, R-Va., discusses the measure and Virginia’s controversial redistricting vote on ‘Fox Report.’
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House GOP leadership is struggling to win over GOP privacy hawks as lawmakers race to extend a powerful government surveillance program ahead of Thursday’s deadline.
The House Rules Committee on Tuesday postponed consideration of a rule teeing up a chamber-wide vote on an extension of Section 702 of the Foreign Intelligence Surveillance Act (FISA) as Republicans remain sharply divided over the program.
The plan would renew the spy law for three years while enacting new penalties for abuses of FISA searches. The measure, however, stops short of incorporating a warrant requirement desired by GOP privacy hawks, who want the adoption of tougher privacy guardrails.
The postponed committee action raises doubts about whether House Speaker Mike Johnson, R-La., can pass an extension of the law before it lapses on April 30.
House Speaker Mike Johnson speaks during a press conference at the U.S. Capitol in Washington, D.C., on Jan. 13, 2026. (Kevin Dietsch/Getty Images)
HOUSE VOTE ON ‘VERY SIMILAR’ SPENDING BILL EXPECTED FRIDAY MORNING, GOP LAWMAKER SAYS
The mounting obstacles to passing a FISA renewal in the House could also allow the Senate to act first and force the lower chamber to swallow whatever it passes. The Senate is scheduled to hold a procedural vote on a three-year extension bill later on Tuesday.
Democrats on the House Rules Committee blasted Republicans for indefinitely postponing consideration of the measure after punting a previously scheduled Tuesday morning meeting to take up the procedural measure. The panel initially adjourned on Monday evening after an hours-long session to allow for more time for Republicans to reach a deal.
«After waiting around all night for Republicans to make a deal — with themselves — on a procedural rule for the week, Democrats showed up to the Rules Committee for an 8 a.m. meeting,» Rep. Jim McGovern, D-Mass., wrote on social media. «Unsurprisingly, when we showed up, we were told there is still no deal.
«Their chaos is only matched by their incompetence,» he added.
The stalled rule also delays consideration of a budget blueprint to fund immigration enforcement and a sweeping bill authorizing agriculture and nutrition priorities known as the farm bill, which GOP leadership is hoping to pass on the floor this week.
House conservatives, who voted down two previous proposals offered by GOP leadership, have so far withheld their support for reauthorizing Section 702 absent reforms.
Rep. Jim McGovern, D-Mass., ripped Republicans on the House panel for punting consideration of a procedural measure teeing up a vote on Section 702 of FISA, among other legislation. (Tom Williams/Getty Images)
JOHNSON FACES GOP REVOLT OVER WARRANTLESS SURVEILLANCE POWERS AHEAD OF KEY VOTE
The spy tool allows the government to surveil foreigners abroad who use U.S. platforms even when those communications involve Americans. A mix of conservatives and progressives have long advocated for changes to the program to force intelligence officials to obtain a warrant prior to reviewing Americans’ data.
Several conservative lawmakers on Monday criticized leadership’s proposal as a minor reworking of the original 18-month extension bill that failed on the House floor.
«Really what we’re doing is taking existing law improvements based on two years ago, making some improvements on penalties and on some FISA transparency…but not going further with respect to warrant protections for American citizens on warrantless surveillance,» Rep. Chip Roy, R-Texas, a key member of the House Freedom Caucus (HFC), said during debate on the measure in the House Rules Committee.
HFC members have sought to add a warrant requirement and language banning a central bank digital currency (CBDC) to the bill — policies they say are critical to winning their votes.
«Even as we are working to right the wrongs and abuses of FISA, it is important we permanently ban what would be the ultimate surveillance tool against our fellow citizens, a central bank digital currency,» Rep. Michael Cloud, R-Texas, told Fox News Digital in a statement.
The Trump administration has pushed for a clean reauthorization of the program, citing the law’s critical national security role. Proponents of the spy law have hailed its ability to gather intelligence that has stopped potential terrorist attacks and drug trafficking.
Rep. Warren Davidson, R-Ohio, a notable GOP privacy hawk, offered his support for the three-year FISA extension during a post on social media last week.
«Collectively, this set of reforms provides robust privacy protections for American citizens. Congress should bank this win and reauthorize Section 702,» Davidson said. «Then, we should swiftly begin gutting the unmitigated surveillance state left growing unchecked during these 702 fights.»
Rep. Chip Roy, R-Texas, a member of the House Rules Committee, is pushing for amendments to the three-year FISA renewal bill drafted by House leadership. (Andrew Harnik/Getty Images)
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House Democratic leadership previewed their objections to Republicans’ FISA reauthorization plan on Monday. Widespread Democratic opposition means Johnson could afford to spare just a handful of GOP defections during a critical procedural vote that could occur as early as Tuesday afternoon.
«This surveillance mechanism could be abused by the likes of individuals like Kash Patel and the acting attorney general,» House Minority Leader Hakeem Jeffries, D-N.Y., said during a news conference Monday. «These people have weaponized the criminal justice system, and they simply cannot be trusted to protect the privacy and the civil liberties of the American people.»
congress, republicans, privacy, senate elections, politics
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Can King Charles save the ever-fracturing ‘special relationship’ after Trump anger at Starmer over Iran war?
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As Britain publicly distances itself from President Donald Trump’s Iran pressure campaign, King Charles III’s upcoming visit is shaping up as more than royal pageantry.
It may be Britain’s most important diplomatic tool for preventing growing policy fractures with Washington from becoming something deeper.
«The British monarch has historically had huge importance in terms of creating personal diplomacy to smooth over ruffled feathers,» Alan Mendoza, executive director of the Henry Jackson Society, a London-based think tank, told Fox News Digital, arguing that the crown has often served as Britain’s strategic stabilizer during moments of political strain.
Mendoza said Charles could play a critical role at a moment when Britain’s Prime Minister Keir Starmer’s government and Trump appear increasingly divided over Iran, defense strategy and the future shape of the transatlantic alliance.
TRUMP SLAMS STARMER AS ‘NOT WINSTON CHURCHILL’ FOR REFUSAL TO BACK IRAN STRIKES
The trip began in Washington, D.C., where King Charles and Queen Camilla were greeted by President Donald Trump and Melania Trump for a private tea. (Anna Moneymaker/Getty Images)
«King Charles has the opportunity, through personal diplomacy, to create a new beginning with Donald Trump,» Mendoza said.
Britain’s balancing act became clearer Monday when Deputy Minister Stephen Doughty publicly rejected U.S. blockade tactics against Iran, while still backing Washington’s broader effort to secure maritime traffic through the Strait of Hormuz.
«While the U.K. doesn’t support the U.S. blockade, it supports working with the United States and others to reopen the Strait of Hormuz,» Doughty said ahead of a U.N. Security Council meeting, according to The Associated Press, warning Tehran cannot be allowed to hold «the rest of the world to ransom.»
The split underscores London’s effort to support U.S. security goals without fully endorsing Trump’s «economic fury» strategy, which aims to strangle Iran’s economic lifelines through aggressive maritime pressure.
That policy divergence has intensified scrutiny over whether Charles’ visit is now functioning as a diplomatic pressure valve.
A White House spokesperson emphasized the visit as a sign of enduring personal rapport between the president and the monarch. «President Trump has always had great respect for King Charles, and their relationship was further strengthened by the president’s historic trip to the United Kingdom last year,» White House spokesperson Anna Kelly told Fox News Digital. «The president enjoyed welcoming their majesties to the White House, and he looks forward to more special events throughout the week.»
AS AIRSTRIKES RAIN DOWN ON THE IRANIAN REGIME, CAN A FRACTURED OPPOSITION UNITE TO LEAD IF IT FALLS?
King Charles III and Queen Camilla disembark their plane at Joint Base Andrews, Maryland, on April 27, 2026, beginning their State Visit to the United States to celebrate the country’s 250th anniversary of independence. (Win McNamee/Getty Images)
Mendoza pointed to Queen Elizabeth II’s past interventions as evidence that the monarchy can sometimes succeed where elected leaders cannot.
He cited Elizabeth’s historic role in easing tensions with Ireland and described royal diplomacy as uniquely positioned to create trust at the personal level.
«People often wonder why the British monarchy still exists in the 21st century,» Mendoza said. «This is why.»
Still, Mendoza was careful not to overstate the king’s role.
Charles, he said, is unlikely to directly influence specific policies on Iran, NATO or military cooperation. Instead, his greatest value lies in shaping what Mendoza called the «general mood music» around Trump’s willingness to engage.
«It’s more a question of general mood music, which could make the president more receptive to interesting solutions,» Mendoza said.
That distinction may prove crucial.
Rather than forcing policy alignment, Charles could help preserve the broader strategic atmosphere needed to keep Washington and London functioning as close allies even while their elected governments disagree.
KING CHARLES SENDS PERSONAL MESSAGE OF CONGRATULATIONS TO TRUMP ON SWEARING-IN
Prince Charles and Camilla hosted President Donald Trump and first lady Melania Trump during a state visit in 2019. (Chris Jackson – WPA Pool/Getty Images)
For Britain, that may be particularly important as outside analysts warn that the «special relationship» is under mounting structural strain.
In an analysis published Monday, Council on Foreign Relations senior fellow Matthias Matthijs argued that while the royal visit offers «spectacle and ritual,» it is unlikely to reverse what he described as the deeper unraveling of U.S.–U.K. ties.
Matthijs pointed to Trump’s repeated criticisms of Starmer about immigration, energy policy and Britain’s posture toward the U.S.-Israeli confrontation with Iran, suggesting Charles may now be doing much of the diplomatic «heavy lifting» required to preserve British access to Trump.
Meanwhile, constitutional scholars in Britain have also raised concerns.
Writing for the U.K. Constitutional Law Association earlier in April, Francesca Jackson warned that using the monarch as a diplomatic instrument during periods of sharp political volatility could expose the Crown to political backlash or «potential embarrassment,» especially if Charles is perceived as caught between Trump and Starmer.
That risk reflects the broader stakes.
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King Charles III and President Donald Trump inspect the Guard of Honour during the state visit at Windsor Castle in Windsor, England, Sept. 17, 2025. (Anna Moneymaker/Getty Images)
If Trump embraces Charles while continuing to criticize Starmer, the visit could preserve royal rapport while underscoring political dysfunction, effectively creating a parallel diplomatic lane between Washington and the British Crown.
But for now, Mendoza argues, the monarchy’s purpose is not governance, but access to the king, which may still have a chance to keep the relationship from fracturing beyond repair.
Fox News Digital reached out to Prime Minister Starmer’s office for comment.
king charles iii, donald trump, foreign policy, united kingdom, british royals
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