COLUMBUS, Ohio (WCMH) — Reports of anticipated mass layoffs within the National Institute of Standards and Technology are sparking concerns about the future of the CHIPS Act, the federal program providing billions to promote domestic semiconductor manufacturing like the Intel Ohio One plant in New Albany.

Up to 500 staffers reportedly may be cut, largely from the AI Safety Institute and the Chips for America divisions. Of note, since initial publication, representatives with Americans for Responsible Innovation said their sources believe cuts may be delayed due to pushback toward other layoffs.

The move is part of President Donald Trump’s administrative push to reduce government spending through mass departures and firings of federal employees. Trump and his billionaire adviser, Elon Musk, are dramatically downsizing with an emphasis on getting rid of probationary employees.

These employees are on probationary status and are typically recent hires or employees in new positions, with the status indicating employees are still in their trial period. The AI Safety Institute was founded in 2023 and the CHIPS branch was founded in 2022, meaning many of its employees could still fall under probationary status.

According to the U.S. Government Accountability Office, the National Institute of Standards and Technology, or NIST, has about 3,400 employees, so if the cuts are as large as anticipated, the office would lose 15% of its workforce.

Analysts have published articles voicing concerns about these cuts and their effect on CHIPS Act funding. Robert Maire, president of Semiconductor Advisors LLC, argued firing the employees behind the CHIPS Act would cause the program to cease to exist.

“If there are no employees left to administer the CHIPS Act program, it is dead by default as there is no one left to certify that companies have met their requirements, let alone write the checks,” Maire wrote.

There are protections in place for Ohio’s Intel plant. According to the agreement between Intel and the Department of Commerce, Intel was to be awarded up to $7.8 billion in direct funding and $65 million in workplace development funding. Under the terms, the Department of Commerce is only able to break the agreement if Intel significantly breaches it, such as by defying CHIPS Act requirements or going bankrupt.

CHIPS Act funding or not, Intel has also received money from Ohio to complete the project. In accepting the funds, Intel is responsible for meeting certain benchmarks, or else they must return the nearly $700 million Ohio has given the project.

The federal cuts could affect others funds for central Ohio’s growing tech industry. NIST distributes grants, and in the past two years has given nearly $2 million to Ohio tech companies and public universities.

The AI Safety Institute is also responsible for evaluating advanced AI systems and setting standards for artificial intelligence use. Including Intel, seven companies have pledged a combined $54 billion to Ohio’s economy. Most are building AI data centers, which would rely on the guidance of the AI Safety Institute.

The uncertainty comes as Trump is pledging to make the U.S. a leader in the AI industry, a contrast to the possible gutting of the AI Safety Institute. Americans for Responsible Innovation initially condemned the predicted firings of NIST employees, stating it will harm America’s role in the industry and hand the reigns to China. The Center for AI Policy made similar comments.

“The potential gutting of NIST’s AI Safety Institute defies common sense and puts Americans at risk,” Center for AI Policy Executive Director Jason Green-Lowe said. “Throwing them out of the government deprives us of the eyes and ears we need to identify when AI is likely to trigger nuclear and biological risks. The savings would be trivial, but the cost to our national security would be immense.”

Both Intel and the Department of Commerce did not respond to a request for comment by publication, but representatives for both companies have previously assured NBC4 Intel Ohio One remains on track to receive its CHIPS Act funding as it continues construction.