Biden-Harris Administration Unleashes $210 Million in Tech Hub Funding Boosts

Additional financing for the Tech Hubs initiative was made feasible through the bipartisan FY25 NDAA that was approved by Congress and enacted into law by President Biden.

WASHINGTON – Today, the U.S. Department of Commerce’s Economic Development Administration (EDA) declared its intention to allocate around $210 million in implementation grants, with amounts ranging from about $22 million to $48 million, to six Tech Hub Designees as part of a new funding cycle from Congress. Additionally, the EDA plans to collaborate with the U.S. National Science Foundation (NSF) to provide specialized resources and individualized assistance to Tech Hubs. This initiative builds on the July 2024 announcement regarding $504 million designated for 12 Tech Hubs throughout the country, totaling over $700 million for 18 centers of excellence aimed at future job creation and industries.

The six recently selected Hubs for implementation grants are part of the 31 Tech Hubs identified in October 2023 by President Biden to enhance the production of essential technologies, generate employment in innovative sectors, fortify U.S. economic competitiveness and national security, and accelerate the advancement of future industries across various regions of the United States.

“To outperform and out-construct the rest of the globe, we must focus on investing in the talent and workforce of America to thrive in a 21^st century economy – that’s how America retains its competitive advantage,” stated U.S. Secretary of Commerce Gina Raimondo. “The Tech Hubs Program and this latest funding allocation stem from bipartisan collaboration in Congress – I hope this commitment will persist so that we can continue to invest in these centers of excellence nationwide, which in turn are creating well-paying jobs in industries of the future and bolstering U.S. economic and national security.”

“We are delighted that bipartisan backing in Congress for the Tech Hubs Program will enable us to make even more meaningful investments in the future of America’s economy and global competitiveness,” remarked Cristina Killingsworth, Acting Assistant Secretary of Commerce for Economic Development. “This funding for implementation will empower the six Tech Hubs to encourage technology commercialization, generate jobs, draw private investment, and strengthen their regional economy as a worldwide leader in their specific technology areas.”

These newly chosen awardees, all recognized Tech Hubs that have not previously received Tech Hubs implementation funding, presented a compelling case that with focused investment, they can advance a vital technology crucial to American economic and national security. This recent award cycle is supported by new allocations from the Fiscal Year (FY) 2025 National Defense Authorization Act (NDAA). The NDAA further contains a clause that could supply the Tech Hubs Program with additional funding of up to $280 million in upcoming years.

Lead Agency: American Aerospace Materials Manufacturing Center

Technology Focus: aerospace materials production

Estimated Award Amount: $48 million

Lead Agency: Southern Research Institute

Technology Focus: equitable AI-driven biotechnology

Estimated Award Amount: $44 million

Lead Agency: Oregon State University

Technology Focus: microfluidics

Estimated Award Amount: $45 million

Lead Agency: University of Missouri System

Technology Focus: critical mineral processing

Estimated Award Amount: $29 million

Lead Agency: Maine Technology Institute

Technology Focus: sustainable wood biomass plastics

Estimated Award Amount: $22 million

Lead Agency: University of Vermont

Technology Focus: gallium nitride semiconductors

Estimated Award Amount: $23 million

The funding for each coalition listed above is approximate, with agreements to be finalized later in the winter.

Moreover, EDA wishes to enhance funding for the Builder Platform, a distinctive post-award support framework that delivers customized resources and a high degree of personalized interaction to NSF Regional Innovation Engines (NSF Engines). The Builder Platform is promoting success for NSF Engines through tailored support systems, curated access points for corporations, philanthropists, investors, and other potential collaborators, alongside best practice information sharing for developing effective innovation ecosystems. With this additional funding, the Builder Platform will extend similar assistance to Tech Hubs, synergizing the initiatives for maximum regional impact.

In July 2024, EDA granted funding to 12 Tech Hubs Designees with implementation grants that varied between $19 million and $51 million, totaling $504 million. Designees that did not obtain implementation grants were conferred $500,000 Consortium Accelerator Awards to further their strategies, including seeking additional capital.

Prior to the NDAA, EDA’s Tech Hubs Program was allocated a total of $541 million – a fraction of the $10 billion that was authorized by the CHIPS and Science Act of 2022, a bipartisan venture that initiated the program.

The NDAA allocates an overall budget of up to $500 million for the Tech Hubs Program with funds derived from a spectrum auction to be conducted by the Federal Communications Commission. Out of this total, Commerce may currently utilize up to $220 million, with an additional $280 million potentially accessible in the future depending on the overall spectrum auction revenues.

About the U.S. Economic Development Administration (www.eda.gov)
The objective of the U.S. Economic Development Administration (EDA) is to spearhead the federal economic development agenda by fostering competitiveness and preparing the nation’s regions for growth and achievement in the global economy. As a division within the U.S. Department of Commerce, EDA invests in communities and promotes regional cooperation to generate jobs for American workers, encourage U.S. innovation, and expedite long-term sustainable economic development.