The ultimate beneficiary of U.S. taxpayer-funded research is…

(this may shock you or maybe it won’t)

Washington is spending billions of your tax dollars every year to hypothetically achieve technological dominance over communist China, but the ultimate beneficiary of that effort may be ... China.

That is the shocking conclusion of a Department of Defense (DoD) review that found China was stealing technology developed in the U.S. by exploiting the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs.

The report explicitly states, “China, not the U.S., is the ultimate beneficiary of DoD and other [U. S. Government] research investments.”

This is how it works: American companies receiving taxpayer assistance for technology development from DoD and other agencies are recruited by China to continue their work at institutions associated with People’s Liberation Army. The U.S. company is then dissolved and the research and intellectual property paid for with U.S. tax dollars is transferred to a subsidiary in China.

Just like that, American-made ingenuity is shipped overseas to our leading global adversary … and we, the American taxpayers, are funding it!

This isn’t just another case of intellectual property theft. This ongoing scheme has national and economic security implications according to the Pentagon.

A researcher and the co-founders of a now-dissolved company that received four grants to develop technology for spacecraft and drones, for example, were allegedly recruited by the Chinese government and now work for institutions affiliated with the communist regime’s defense agency.

Tens of millions of your tax dollars were spent on the development of other technologies, including broadband, biohazard detectors, solar energy, designs for military devices, and pharmaceuticals, that were all transferred to China.

Folks, no matter how much of your money Washington spends to “win” the global tech race, we will never win by surrendering American-made innovation and subsidizing our adversaries.

This cycle will continue until these grant programs are both required and empowered to hold unscrupulous recipients of taxpayer funds accountable for selling out to China.

Squeal Award: Government Agencies Funding Double-Crossing Companies Who Sell Out to China

That is why I am awarding my September 2022 Squeal Award to all of the government agencies that have allowed these double-crossing companies to take your money and run off to China with the breakthroughs that rightfully belong to the U.S.

Folks, this has to stop right now. That is why I have introduced bipartisan legislation that was swiftly passed unanimously by the Senate that will require agencies to do background checks on businesses seeking support for nefarious ties to foreign nations and take back taxpayer dollars from any found to be a risk to national security.

Do you have an example of government waste or inefficiencies that I should take a look at? Send me an email by clicking here.

Thank you!