EDA Tech Hubs get another shot at funding, thanks to a Trump administration overall that canceled 6 awards

Technical.ly

28-05-2025

The future of a historic effort to boost local innovation scenes with federal funds will get a defense-friendly overhaul under the Trump administration.
Earlier this month, Department of Commerce Secretary Howard Lutnick said he directed the agency to 'revamp' the Economic Development Administration's (EDA) Tech Hubs program. In its place, Lutnick pledged a redone version 'to prioritize national security, project quality, benefit to the taxpayer and a fair process.' It also stripped six regions of $210 million in previously awarded funding, which Lutnick said wasn't available anyway.
'The process was rushed, opaque and unfair — administration officials did not make prospective applicants aware of the competition and chose awardees using outdated applications submitted nearly a year earlier,' Lutnick said.
Lutnick and the Commerce Department neither elaborated on what flaws they found with the program nor provided any concrete examples.
Instead, the EDA plans to open new funding opportunities this summer and announce 'selections' early next year. Lutnick also said that currently designated tech hubs can seek out funding alongside other possible ones.
For regions that missed out on past grants, like Philadelphia and Baltimore, the announcement provides a new opportunity to compete for funds. But tech hubs facing the cancellation are now leaning more heavily on local partners to still try to accomplish their missions.
The Commerce Department did not immediately return answers to questions about how it determined the process's flaws, including the lack of available funds for the awards the Biden administration gave to hubs in places like Alabama, Washington, Idaho and Vermont. It also did not answer questions about the status of any of the 31 tech hubs the last admin designated in 2023.
Shifting priorities doesn't kill faith in PROPEL's mission
The Philadelphia region's Tech Hub consortium is excited that the program will continue and that there will be another opportunity to submit their proposal, Tony Green, chief scientific officer for Ben Franklin Technology Partners, told Technical.ly.
'EDA's goals for the program and our goals for the PROPEL Hub are in alignment — to bring innovation, manufacturing and jobs back to the US,' he said.
Philly's hub is PROPEL: the National Center for Precision Medicine, which focuses on advancing biomanufacturing infrastructure, creating a strong workforce development pipeline, providing resources to local startups, and advancing commercialization and access to precision medicines. The consortium that put together the original $80 million proposal consists of over 100 organizations across southeastern Pennsylvania, northern Delaware and southern New Jersey.
PROPEL was not selected for phase two funding or for the most recent round in January. However, stakeholders welcomed EDA leaders to Philly last fall to gather feedback and show off the work consortium members were already doing.
At the time, Tech Hubs program director Eric Smith told Technical.ly the consortium should focus on refining its vision, emphasizing collaboration and providing more specifics in its proposal.
Since then, members have been working to apply those critiques, Green said.
'We are confident we have addressed the important feedback we received from EDA while ensuring consistency with the current Administration's priorities,' Green said. 'In the end, the mission and vision of the Hub has not changed and remains vital to the health and economy of our region and to national security.'
Baltimore's bid head evaluates fit under Trump priorities
CEO Mark Anthony Thomas of the Greater Baltimore Committee said that his organization, which led the $70 million bid behind The Baltimore Tech Hub, learned about the pivot straight from the Commerce Department about two weeks ago.
The agency specifically said that money granted in January would be reallocated; like PROPEL, the region's own biotechnology- and AI-focused project missed out on funding then, as well as the prior July, and also hosted a visit from EDA officials.
Thomas saw Lutnick's memo as a positive development and a sign of confidence in the program.
'It's a validation of what created the need for the program, and then the continuation of the program under this administration,' he said. 'Which is a good sign, not even just for Baltimore, but for the overarching future of America's economy.'
Going forward, the GBC aims to determine how its various projects, including the Tech Hub, can best align with the Trump administration's priorities for innovation. That will involve seeking out another partner, like it found in Accenture during the phase two process, to help translate the project into that shifted focus.
'What I want is a partner who truly can speak to the way this administration is thinking about economic development and global competitiveness,' he said, 'and help our existing projects and partners align their work with those federal goals and the broader market opportunity.'
The region is well-positioned for at least one of the priorities mentioned in Lutnick's memo. The counties under the GBC's purview already boast several major national security assets, too, from a massive cybersecurity industry to defense installations like Aberdeen Proving Ground and Fort Meade.
Despite funding pullback, Vermont's bid moves 'full steam ahead'
One Tech Hub impacted by the funding cut, Vermont Gallium Nitride, acknowledged the award pullback with plans to draft a highly competitive proposal for its semiconductor project in the next round of funding. In the meantime, it already has the money and partnerships to continue making progress, according to Douglas Merrill, the University of Vermont's regional innovation officer.
'The Vermont Tech Hub continues to move forward full steam ahead, having attracted over $3.9 million in funding and 60 members and partners to date,' Merrill said. 'A new agreement with the Northeast Microelectronics Coalition (NEMC) will fund a key element of our Tech Hub — a semiconductor test and characterization laboratory, which will be available to Tech Hub and NEMC members by early 2026.'
The other five Tech Hubs that lost funding did not immediately respond to Technical.ly's request for comment.
First round of funded Tech Hubs moves forward as planned
For all Tech Hubs that have been awarded funding, the recent announcement has been a time to reflect on the work their doing and push ahead, leaders tell Technical.ly.
The 12 2024 grant awardees will be able to move forward as planned. Montana's Headwaters Tech Hub, Wisconsin's Biohealth Tech Hub, Tulsa's Tech Hub and South Florida's ClimateReady Tech Hub all confirmed with Technical.ly that they are doing as much. The other eight did not immediately respond to Technical.ly's request for comment.
'All Tulsa Tech Hub initiatives are moving ahead as planned and fully funded,' said Hayden Hinchey, senior associate of marketing and communications at Tulsa Innovation Labs. The hub's mission focuses on securing autonomous systems for everything from agriculture to regional transportation.
In Wisconsin, the Biohealth Tech Hub will remain focused on 'biohealth innovation that strengthens both our regional economy and national security,' said Rissa Guffey, senior director of marketing and communications at Bio Forward Wisconsin. The Biohealth Tech Hub's EDA webpage does not mention a focus on national security, though Lutnick stated it as a priority in his recent memo.
The Headwaters Tech Hub in Montana is using AI and machine learning to build smart sensing systems that can be employed in rugged terrain, precision agriculture and roadway settings. The project was not directly impacted by the recent announcement and continues to maintain strong bipartisan support, according to Tim VanReken, executive director and regional innovation officer at the Headwaters Tech Hub.
'As we move forward, we're going to continue to bring attention to the importance of the technologies we develop in Montana,' he said. 'Highlighting these wins help [sic] highlight our region and the brand of innovation we're building, and our hope [that] it will also bring greater attention and understanding of the catalytic value of the Tech Hub Program investments.'