Latest news with #TechHubs
Yahoo
4 days ago
- Business
- Yahoo
The Commerce Department recalled funding for 6 manufacturing tech hubs. What happens next?
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Six U.S. technology and manufacturing hubs that were previously approved for a total of $210 million in federal grants must now reapply for the funding after Commerce Secretary Howard Lutnick decided to revamp a Biden-era investment program last month. On May 16, Lutnick issued a statement criticizing the prior administration's selection of six applicants for Tech Hubs Program funding earlier this year, calling the process 'rushed, opaque, and unfair.' As a result, he said another competition is in the works this summer, with plans to announce the winners in January 2026. Doug Merrill, regional innovation officer for the Vermont Gallium Nitride Tech Hub — one of the hubs that recently lost $23 million in funding for semiconductor development and workforce training — said in a statement that the hub is 'eager to re-apply' as it moves forward with support from other members and partners. The funding reversal is part of a larger trend by the Trump Administration to cut Biden-era programs, including tens of millions of dollars in National Science Foundation grants and recent efforts to slash billions in climate-related funds. In January, the Biden Administration approved grants to six university- or nonprofit-led applicants ranging between $22 million and $48 million as an investment to advance technology important to U.S. economic and national security. The funds came from the fiscal year 2025 National Defense Authorization Act and were in addition to a separate round of grants totaling $504 million in July 2024 for projects recognized as 'tech hubs.' However, Lutnick said the selection process and approval for the six projects were done with funds that were not available yet. 'At my direction, the Commerce Department is revamping the Tech Hubs program to prioritize national security, project quality, benefit to the taxpayer, and a fair process,' Lutnick said in a statement. 'To be clear, this decision is not an indictment of the work that the previously selected Tech Hubs are doing,' he added. 'They can compete for funding alongside all other prospective applicants.' The tech hubs that were approved for and then denied funding include: American Aerospace Materials Manufacturing Center (Washington, Idaho): $48 million Birmingham Biotechnology Hub (Alabama): $44 million Corvallis Microfluidics Tech Hub (Oregon): $45 million Critical Minerals and Materials for Advanced Energy (CM2AE) Tech Hub (Missouri): $29 million Forest Bioproducts Advanced Manufacturing Tech Hub (Maine): $22 million Vermont Gallium Nitride Tech Hub (Vermont): $23 million Lawmakers who previously celebrated the investments as a way to support American manufacturing and supply chain innovation were disappointed by Lutnick's decision to withhold previous awards from the Biden Administration. Washington Sen. Maria Cantwell, whose state had won $48 million to support the American Aerospace Materials Manufacturing Center, called the loss of funding an 'unnecessary delay' in the race to reestablish the U.S. as a global leader in aerospace component production. 'This is causing us chaos and uncertainty in a race against world competitors to build high rate manufactured composites likely to determine which country wins the aerospace future,' Cantwell said in a statement May 16. Despite the reversal of funds, the affected tech hubs are moving forward as planned with help from other supporters. 'Our vast consortium is proud to have the support of our legislators and the communities across Washington and Idaho as we move forward,' the AAMMC said in a public statement May 19. Additionally, The Vermont Gallium Nitride Tech Hub, led by the University of Vermont and chip maker GlobalFoundries, looks forward to reapplying for funding. 'Vermont's Tech Hub continues to move forward full steam ahead, having attracted $3.9 million in funding and sixty members and partners to date,' Merrill said in a statement. 'The interest that our partners have demonstrated make us confident that the scope and mission we will propose in the next funding round will be well aligned with our nation's technology priorities and will be highly competitive in the next round of project selection,' he added. Recommended Reading US to investigate semiconductor imports Sign in to access your portfolio
Technical.ly
28-05-2025
- Business
- Technical.ly
EDA Tech Hubs get another shot at funding, thanks to a Trump administration overall that canceled 6 awards
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 '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 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 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 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 that they are doing as much. The other eight did not immediately respond to 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.'
Yahoo
20-05-2025
- Business
- Yahoo
County Commissioner Al French believes it's too early to count out tech hub funding
May 19—Patience is a virtue, and Spokane County Commissioner Al French wants the region to keep that front of mind while waiting on a nearly $50 million federal investment in an Inland Northwest aerospace manufacturing hub. On Friday, the Trump administration announced the cancellation of a $48 million grant awarded to the Spokane-Couer d'Alene area, alongside grants in five other regions awarded as part of the U.S. Department of Commerce Tech Hubs program. Funding for the program was included in the CHIPS and Science Act of 2022, a bipartisan bill championed by Washington Sen. Maria Cantwell that devoted $280 billion towards advancing scientific research and manufacturing to keep the U.S. competitive internationally. The local award was intended for the conversion of the former Triumph Composite Systems Inc. facility in Airway Heights into a one-of-a-kind manufacturing facility — the first in the nation to produce, on a large scale, advanced thermoplastic materials that can replace metal to make airplanes lighter and more fuel efficient. French represents the West Plains on the county commission and advocated for the project on the local and federal levels. The cancellation comes just four months after the award was granted under the Biden administration, stirring disappointment from the region's elected leaders on both sides of the aisle at the local and national level Friday. French believes the Inland Northwest's discomfort won't last too long, though. He said the cancellation is not out of line with the Trump administration's broader efforts at the federal level, and that "ultimately, the administration is going to come around and see all the value" of the Spokane-Coeur d'Alene hub. "They feel like they've come in with a mandate, and they want to try and make sure that programs meet their priorities," French said. "It's unfortunate that it hit the tech hub, but I think as you look at all of the metrics that the Trump administration is trying to accomplish with regard to, whether it's Build America or creating more jobs or more technology, the tech hub does all of those things and some." In his statement announcing the reversal, Commerce Secretary Howard Lutnick said he intends to release a new call for applications this summer and announce a new round of awards in early 2026. "It's unfortunate, but I'm more of a long-term guy than a short-term guy," French said. "And I think long-term, this is a good investment for the country, and it's a good investment for Spokane County and the aerospace sector, and will end up surviving any kind of scrutiny that they put it through."
Technical.ly
19-03-2025
- Business
- Technical.ly
Baltimore reports more tax revenue and big-ticket development deals in 2024
One of the region's main economic growth-focused nonprofits used the occasion of a brand reveal to highlight what 2024 brought in investments, ongoing development projects, real estate and job growth. This week's Pulse Check event was the second time the Greater Baltimore Committee (GBC) released a 'scorecard,' and about 400 ecosystem leaders came together at Towson University on Tuesday to get the news. This new report takes into account economic data like venture capital flow in the region or an out-of-state company constructing a new building. Mark Anthony Thomas, president and CEO of the GBC, joined several colleagues and other speakers in highlighting the assets and promise behind their efforts. 'With the release of the 2024 scorecard,' said Thomas, 'we have the data that shows our region has a healthy level of investment, but we'd love to see more.' The GBC also announced a new regional 'brand' at the event, summed up under the concept: 'Bold Moves.' That phrase resulted from research among focus groups, interviews, evaluations of similar regions and a national survey to see how people perceive Baltimore externally. Leaders highlighted many regional projects from 2024 and other evergreen plans, as well as how they've influenced the economy. These initiatives ranged from the Sparrows Point Container Terminal redevelopment project to the new efforts to build up the Baltimore Peninsula neighborhood. Here are some takeaways from the scorecard's findings. Manufacturing continues to grow in Maryland Manufacturing was a key part of Baltimore's economy in 2024 and will continue to be for years to come, per the GBC's report. Baltimore's federal Tech Hubs bid focuses on biomanufacturing, as well as biotech capabilities, building up investor networks for entrepreneurs and reinvigorating job training in the region. The region missed out on two rounds of funding from the Economic Development Administration, and it's unclear when the next round of hubs will receive capital. Despite that, manufacturing still made an impact throughout the region — one the scorecard defines as including Baltimore City, as well as Baltimore, Carroll, Anne Arundel, Howard, Harford and Cecil counties. The sector nabbed $1 of every $7 invested across venture funds and development deals. In 2024, manufacturing-focused companies scored 17 investments out of 85 transactions. That's in addition to 25 development projects related to the industry out of 147 total planned — a 127% increase from 2023. 'Manufacturing remains a throughline for Baltimore's 2024 success and growth,' said Patrick Hosford, the GBC's director of strategy and research. For example, Hellenic Cables just broke ground to establish a cable manufacturing facility in South Baltimore. The GBC's report lists the deal at $300 million. In addition, Rapafusyn Pharmaceuticals, a builder of molecular glue steps away from the Johns Hopkins University Hospital, landed $28 million in one of last year's top five investment deals. Tax revenue spikes The region generated $670 million in tax revenue in 2024 — a 68% increase from 2023. A bulk of the funds came from federal tax revenue ($154 million), plus $22 million from the state and $13 million from local jurisdictions, per the report. Some industries paid more than others: Transportation and warehousing contributed $189 million (a nearly 3,000% increase) while $158 million flowed from the utilities sector. Other key sectors the GBC highlighted include scientific and technical services, real estate, manufacturing and healthcare. Area businesses' taxes are a matter of concern one of Anne Arundel County's main industries: the state government. To raise $1 billion and close a budget gap, Maryland lawmakers previously considered a new 2.5% tax on services businesses sell to each other. Gov. Wes Moore announced Tuesday that that was no longer the case. Development deals are up, investment is down Baltimore saw about an 18% increase in capital flow from development projects compared to 2023, with major contributors like the Hellenic Cables deal and the $1 billion Sparrows Point Container Terminal redevelopment project. Conversely, investments in companies themselves are down by more than 50% from last year, with 85 deals culminating in $569 million. Baltimore isn't unique in this slowdown, and a lot of the capital has been funneled to later-stage firms. Because of all of the developments in the region, Baltimore's capital expenditures overall remain 'steady,' said GBC's Hosford. 'Like the nation,' he added, 'the region was shaped by mega projects which helped bolster and really drive capital expenditures in the region.'
Technical.ly
02-03-2025
- Business
- Technical.ly
Ecosystem building is coalition building
Current federal policy shifts, which are forcing significant funding cuts and other changes to innovation programs, are creating challenges for local ecosystem builders. But ecosystem building is about bringing together diverse groups to support entrepreneurship, technology and economic development. So despite national political turmoil, many local organizers remain focused on practical solutions and community-driven economic growth. Shared goals like job creation can bridge political divides. One definition of justice is ensuring everyone has a fair shot at thriving. That's what lights me up about entrepreneurship, technology and career training. It's also why I care about information resources (read: journalism) and the rule of law. I'll talk to practically anyone who is serious about this work, even if I disagree with them on plenty else. This is the heart of ecosystem building, which I think of as the art of encouraging the big and the small, the weird and the square, the fast and the slow to inhabit the same environment. Not all species need to interact, and when they do some may even be at odds. My pursuit: Find the most important work that stitches together the most good-faith actors. Ecosystem building is coalition building, then — and boy could we use coalition building right now. This week, I recorded the next in Technically's ecosystem-building podcast with investor Brian Brackeen, the founding partner of Lightship Capital, and small business advocate Victor Hwang, the founder/CEO of Right to Start. What unites us is a passion for how local organizing and entrepreneurship define the American project. Our intention is to focus on that local work, which we've all found is better at uniting than dividing. 'When you start talking about entrepreneurship and the power to create jobs, to lift communities, to create wealth, to raise incomes, to fight poverty, fight inequality, it's pretty universal how [popular] that is,' Hwang said. 'But it's also one of those issues that doesn't get talked about much, which means it's still pretty fresh.' Trouble is, I feel unable to ignore how a bombastic start to the Trump administration has impacted local organizing around the country. In addition to firing an estimated 200,000 federal workers and cutting federal funding less out of budgetary consequence than political motivation, the bipartisan Tech Hubs program has been under fire, as has reported, alongside data gathering and AI research. And so, with a pledge to work to focus more on local, Hwang, Brackeen and I took some time to gather our advice for each other, and peers, that are in ecosystem building work around the country. Local bright spots in entrepreneurship Plenty of local organizing continues. Brackeen praised Endeavor, a global network that supports entrepreneurs outside traditional venture capital strongholds like Silicon Valley and New York. '[Endeavor is] doubling down on ecosystems and investing in positive entrepreneurs who create a multiplier effect in their communities,' Brackeen said. Hwang, reflecting on a road trip he took last fall, emphasized the unlikely places where entrepreneurial energy is thriving. 'In Portland, Oregon, there's an effort to build a shoe innovation district in Old Town,' Hwang said. 'In Akron, Ohio, they turned an old Goodyear tire plant into Bounce Innovation Hub, a massive coworking and innovation space.' The federal policy landscape: A challenge for local builders Entrepreneurship-led economic development may be on the rise. But strategies developed under the climate and racial justice–focused industrial policy of the Biden administration are being scrutinized, if not abandoned altogether. A report released last fall by Senate Republicans as an analysis of National Science Foundation grants titled ' DEI: Division. Extremism. Ideology. ' was recirculated this month by organizations attempting to redact politicized terms from their websites and applications. Of the major innovation role research universities play in many regions, Brackeen said: 'If you're Columbus and your ecosystem is driven by Ohio State spin-offs, you could be affected more than, say, Tulsa, which relies on philanthropic private capital.' 'The news makes it seem like we're at war with each other, but when you actually visit communities, people are just focused on doing the work.' Victor Hwang, Right to Start national Map of Innovation Ecosystems includes an index that relies heavily on the influence of major R&D investments. How much those investments change over time will shake up where technology is commercialized. Federally-funded Tech Hubs organizers are nervous. Yet Hwang says on the ground, local organizers and entrepreneur supporters can only focus on what they can control — and many are doing just that. 'It's almost like we live in two different universes,' he said. 'The news makes it seem like we're at war with each other, but when you actually visit communities, people are just focused on doing the work.' Coalition building as a path forward As ecosystem builders look for ways to sustain momentum, the conversation turned to coalition building as a strategy for navigating political uncertainty. Hwang's Right to Start organization is actively working across political divides, launching in-state coalitions in places like Arkansas and Indiana, with plans for expansion into California, Michigan, Missouri, New York and North Carolina. 'We had over a dozen Right to Start Act bills introduced across states with vastly different political leadership,' he said. 'Creating an office of entrepreneurship, tracking entrepreneurs, shifting economic development priorities — all of these are ideas with broad appeal.' Brackeen added that economic development strategies differ by region but ultimately share the same goal. 'Ohio's model is very different from New York's, but at the end of the day, they both want the same thing — thriving businesses,' he said. 'If you strip away the political middleman, it's clear that entrepreneurship is a common ground.' Can local ecosystem builders continue to thrive in an era of political division? Hwang and Brackeen remain optimistic but realistic. 'This is still a bottom-up democracy,' Hwang said. 'Both parties haven't quite figured out how to tap into the energy of entrepreneurship, but the leader who does will have a major political advantage in the coming years.' Policing language is easier than forging connections My favorite social video of the week is from TikTok user @nopebrigade0 who identifies as a sociology PhD candidate and argues two of my favorite points: If you call everything fascism, the word loses meaning, and policing language is often classist virtue signaling. After I published an op-ed critiquing Elon Musk for arrogantly overriding democratic ideals, plenty of readers criticized me for not being critical enough. Following my last column in which I argued that a Trump-championed witch hunt for DEI programs was no less an attack on free speech than mandating DEI language, one friend belittled my writing as daring to equate his political views with those of his political opponent. I find this unproductive. As the social activist Bernice Johnson Reagon, who sadly died last year, put it: 'If you're in a coalition and you're comfortable, you know it's not a broad enough coalition.' It is so much easier to police the language of someone you mostly agree with, than it is to build bridges to someone you mostly disagree with. Better to build a coalition around important issues we can agree on. 'What we need is a narrative of who we are together, who we are as a nation,' as that TikTok user eloquently puts it. 'It can be a big, expansive, wonderful one.' National politics and federal priorities do shape state and local strategies. They did under the Biden administration, and they will under Trump. Activism is necessary, so do call your elected officials and attend town halls. For most of us though,the best path forward remains at the community level. 'People ascribe evilness to the 'other side' without actually knowing them,' Brackeen said. 'But when you focus on real entrepreneurs, real businesses, and real job creation, you can find common ground in any political environment.'
