Democrats ask Raimondo to step up enforcement on CHIPS funding

• A group of Democrats are asking Commerce Secretary Gina Raimondo to ensure companies given CHIPS grants aren't using them to pad bottom line.
• BAE System is engaging in stock buy backs around the time of receiving the award.
• Sen. Elizabeth Warren previously raised concerns about stock buybacks from companies awarded CHIPS funding.

WASHINGTON — A group of Democrats are raising concerns as to whether companies that received federal funding for semiconductors used the money to support stock buybacks - and criticizing their own party over how the awards are given.

In a letter to Commerce Secretary Gina Raimondo obtained by CNBC, four lawmakers flagged that BAE Systems commenced a round of buybacks in the same period they will be paid a $35 million award from the CHIPS Act. 

The letter, lead by Sen. Elizabeth Warren, Mass., and signed by Reps. Sean Casten and Bill Foster of Illinois and Pramila Jayapal of Washington also noted that Intel, which has received the largest award to date —$8.5 billion — was approved by its board of directors to repurchase $7.24 billion in stocks.

Intel CEO Pat Gelsinger told Yahoo! Finance last year that the company remains "committed to the dividend."

Raimondo has stated that CHIPS funding is not meant to pad companies' bottom lines or support stock buybacks.

But lawmakers urged her to go further, and ban stock buybacks for companies that receive CHIPS funds.

In the letter, lawmakers wrote the department has continued to "leave the door open for these large semiconductor companies to take millions or even billions in CHIPS grants, move some money around, and then engage in more stock buybacks."

"[I]t is difficult to square the buyback history and stated intentions of the CHIPS awardees with