EDA - Economic Development Administration

01/14/2025 | Press release | Distributed by Public on 01/14/2025 04:03

Biden-Harris Administration Awards Additional $210 Million Tech Hub Grants

WASHINGTON, DC - The U.S. Department of Commerce's Economic Development Administration (EDA) announced today that it plans to award approximately $210 million in implementation grants, ranging between approximately $22 million and $48 million, to six Tech Hub Designees as part of a new round of funding from Congress. In addition, EDA intends to partner with the U.S. National Science Foundation (NSF) to extend tailored resources and personalized support to Tech Hubs. This builds on the July 2024 announcement of $504 million for 12 Tech Hubs across America, bringing the total to more than $700 million for 18 centers of excellence focused on jobs and industries of the future.

The six latest Hubs selected for implementation grants are among the 31 Tech Hubs designated in October 2023 by President Biden to scale up the production of critical technologies, create jobs in innovative industries, strengthen U.S. economic competitiveness and national security, and accelerate the growth of industries of the future in regions across the United States.

"To out-innovate and out-build the rest of the world, we need to ensure we're investing in America's talent and workforce to succeed in a 21st century economy - that's how America maintains its competitive edge," said U.S. Secretary of Commerce Gina Raimondo. "The Tech Hubs Program and this latest allocation of funds are the result of bipartisan cooperation in Congress - I hope that good-faith work will endure so we can continue to invest in these centers of excellence across the nation, which in return, are providing good-paying jobs in industries of the future and helping to strengthen U.S. economic and national security."

"We are so pleased that bipartisan support in Congress for the Tech Hubs Program will allow us to make even more impactful investments in the future of America's economy and national competitiveness," said Cristina Killingsworth, Acting Assistant Secretary of Commerce for Economic Development. "This implementation funding will empower the six Tech Hubs to spur technology commercialization, create jobs, attract private investment, and fortify their regional economy as a global leader in their respective technology focus."

These new awardees, all designated Tech Hubs that have not previously received Tech Hubs implementation funds, made a strong case that with targeted investment they can advance a critical technology important to American economic and national security. This new round of awards is funded by new appropriations from the Fiscal Year (FY) 2025 National Defense Authorization Act (NDAA). The NDAA also includes a provision that could provide the Tech Hubs Program additional funding of up to $280 million in the coming years.

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

In addition, EDA intends to add funding to the Builder Platform, a unique post-award support model that provides tailored resources and a high level of personalized engagement to NSF Regional Innovation Engines (NSF Engines). The Builder Platform is driving success for NSF Engines through tailored support networks, curated entry points for corporations, philanthropists, investors and other potential partners, and best practice information sharing for building successful innovation ecosystems. Through this additional funding, the Builder Platform will provide the similar support to Tech Hubs, synergizing the programs for optimal regional impact.

In July 2024, EDA awarded 12 Tech Hubs Designees with implementation grants that ranged between $19 million and $51 million, totaling $504 million. Designees that did not receive implementation grants were awarded $500,000 Consortium Accelerator Awards to continue implementing their strategies, including the pursuit of additional capital.

Prior to the NDAA, EDA's Tech Hubs Program was appropriated a total of $541 million-a fraction of the $10 billion that was authorized by the CHIPS and Science Act of 2022, a bipartisan initiative that created the program.

The NDAA appropriates a total of up to $500 million for the Tech Hubs Program with proceeds from a spectrum auction to be run by the Federal Communications Commission. Of that amount, Commerce may currently access up to $220 million, and up to $280 million could become available in the future depending on the total spectrum auction proceeds.

About the U.S. Economic Development Administration (www.eda.gov)
The mission of the U.S. Economic Development Administration (EDA) is to lead the federal economic development agenda by promoting competitiveness and preparing the nation's regions for growth and success in the worldwide economy. An agency within the U.S. Department of Commerce, EDA invests in communities and supports regional collaboration in order to create jobs for U.S. workers, promote American innovation, and accelerate long-term sustainable economic growth.