In 2022, Congress established the Tech Hubs Program to bolster U.S. economic and national security by advancing future technologies. The program aims to ensure that essential industries, companies, and jobs are developed and maintained within the United States.
However, there have been concerns about the initial implementation of this program. According to U.S. Secretary of Commerce Howard Lutnick, "the prior Administration announced awards to six Tech Hubs" prematurely as the funds were not yet available. Lutnick criticized the process as being "rushed, opaque, and unfair," with administration officials allegedly failing to inform potential applicants about the competition and selecting awardees based on outdated applications.
Secretary Lutnick has directed a revamp of the Tech Hubs Program by the Commerce Department. The new approach will emphasize national security, project quality, taxpayer benefits, and fairness in its process. The Economic Development Administration (EDA) plans to issue a new notice of funding opportunity this summer, aiming for selections in early 2026.
Lutnick clarified that this decision is not a critique of the work done by previously selected Tech Hubs but rather an effort towards fairness and responsible use of taxpayer money: "They can compete for funding alongside all other prospective applicants." He emphasized that "the process will be transparent, fair," ensuring investments are made in promising technological advancements critical for U.S. industry growth.
