The Biden administration will require tech and chip manufacturers that receive subsidies via the CHIPS Act to provide some form of child care, adding a new domestic policy restriction to funding meant to help the United States compete with China in an innovation war.

The Commerce Department is set to announce the childcare requirement Tuesday as part of a broader set of conditions for subsidies from the CHIPS Act, which was passed last year on a bipartisan basis and included more than $50 billion for the domestic semiconductor industry. President Joe Biden ran on a platform plank of expanding government funding for child care.

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"Here's the truth: CHIPS won't be successful unless we expand the labor force," Commerce Secretary Gina Raimondo tweeted. "We can't do that without affordable child care. That's why we're requiring companies that receive funding to tell us how they plan to provide affordable child care for workers."

Companies that receive the subsidies will be allowed to use the funding to fulfill the child care requirement in consultation with Commerce Department officials, according to the New York Times. This could include paying for company-operated day care facilities, paying local providers, or subsidizing employee care costs.

Biden had previously attempted to pass a $4 trillion economic agenda that would have included government funding for child care. However, the legislation stalled after opposition from centrists such as Sens. Kyrsten Sinema (I-AZ) and Joe Manchin (D-WV).

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Raimondo announced last week that the CHIPS Act would fund the construction of at least two new semiconductor factory hubs in the near term.

Semiconductor companies have also been competing for the subsidies.