Trump Admin Yanks $210M From 'Rushed' Projects Tied To CRE, Biotech And AI
Six tech hubs awarded a collective $210M of funding in January had their awards canceled, according to an announcement from the Trump administration.
Commerce Secretary Howard Lutnick said the hubs can compete among other applicants for a chance to win funding again.
Then-President Joe Biden in 2023 named 31 tech hubs across the country eligible for federal grants from the $53B CHIPS and Science Act. The bill earmarked $280B to spur economic development and reduce dependence on foreign suppliers in the tech industry, with the intention of expanding research in artificial intelligence, semiconductor manufacturing and clean energy.
The Biden administration first awarded $504M to 12 regional tech hubs in July, then awarded $210M to six additional tech hubs in January. Much of the funding will be used to develop new manufacturing facilities or upgrade existing infrastructure.
While the Tech Hubs program has already awarded $541M in grants, the second round of awards resulted in criticism from tech hubs that didn't secure funding, according to the Commerce Department.
“Regrettably, on its way out the door, the prior Administration announced awards to six Tech Hubs, even though the funds were not yet available,” Lutnick said in a statement on Friday. “Moreover, the process was rushed, opaque, and unfair.”
The six previously selected tech hubs will be eligible to compete for $220M worth of grants along with the other designated tech hubs that haven't received funding, totaling 19. The U.S. Economic Development Administration will announce a notice of funding opportunity this summer, according to Lutnick’s statement, with the goal of announcing selections in early 2026.
“To be clear, this decision is not an indictment of the work that the previously selected Tech Hubs are doing,” Lutnick said. “They can compete for funding alongside all other prospective applicants. This decision is about fairness and making prudent choices with hard earned taxpayer dollars.”
The six tech hub awards in January would have covered 15 projects in Vermont, Maine, Missouri, Oregon, Alabama, Washington and Idaho. The largest award was $48M to the American Aerospace Materials Manufacturing Center in Washington and Idaho.
The Birmingham Biotechnology Hub in Alabama was awarded $44M for its work in equitable AI-driven biotechnology. The smallest award was $22M to the Forest Bioproducts Advanced Manufacturing Tech Hub in Maine, which focuses on developing sustainable wood biomass polymers as an alternative to plastics.
